{"id":24,"date":"2026-09-04T09:00:00","date_gmt":"2026-09-04T09:00:00","guid":{"rendered":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/2026\/09\/04\/s-corp-or-llc\/"},"modified":"2026-09-04T09:00:00","modified_gmt":"2026-09-04T09:00:00","slug":"s-corp-or-llc","status":"publish","type":"post","link":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/s-corp-or-llc\/","title":{"rendered":"S corp or LLC? Choosing the right structure as you grow"},"content":{"rendered":"<p class=\"anps-lead\">Most owners start as a sole proprietor or a single-member LLC. As profit grows, the question changes from \u201chow do I get set up?\u201d to \u201cam I paying more tax than I need to?\u201d<\/p>\n<h2 id=\"llc\">What an LLC changes \u2014 and what it doesn\u2019t<\/h2>\n<p>An LLC is a legal wrapper. It separates business liabilities from your personal assets, but by default the IRS taxes a single-member LLC exactly like a sole proprietorship: all profit flows to your personal return and is subject to self-employment tax.<\/p>\n<h2 id=\"s-corp\">When an S corp election starts to pay off<\/h2>\n<p>Electing S corporation status lets you split profit into a reasonable salary and distributions. Payroll taxes apply to the salary only, so once profit is consistently above roughly $80,000, the savings usually outweigh the extra payroll and filing costs.<\/p>\n<ul>\n<li>You run payroll for yourself, with quarterly filings.<\/li>\n<li>You file a separate business return (Form 1120-S).<\/li>\n<li>Your salary has to be defensible for the work you do.<\/li>\n<\/ul>\n<h2 id=\"estimated\">How it affects your estimated payments<\/h2>\n<p>With an S corp, part of your tax is withheld through payroll, so quarterly estimated payments get smaller and more predictable. Distributions still need planning, which is where a quarterly review earns its keep.<\/p>\n<h2 id=\"decide\">How we help owners decide<\/h2>\n<p>We model both structures with your real numbers \u2014 profit, salary, state taxes and admin costs \u2014 and show the break-even point before you file anything.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How each structure changes your estimated tax payments, self-employment tax and the paperwork you file each year. <\/p>\n","protected":false},"author":1,"featured_media":25,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-24","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-structure"],"_links":{"self":[{"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/posts\/24","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/comments?post=24"}],"version-history":[{"count":0,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/posts\/24\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/media\/25"}],"wp:attachment":[{"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/media?parent=24"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/categories?post=24"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/preview.accounting.anpsthemes.com\/demo12e\/wp-json\/wp\/v2\/tags?post=24"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}