One of the first big decisions every entrepreneur makes is choosing the right business entity. The choice isn’t just legal—it’s financial. The structure you choose affects your taxes, liability, and even how you pay yourself.

LLC: Flexibility First
An LLC is a favorite among small business owners and real estate investors. It offers liability protection and a flexible tax structure where profits pass directly to your personal tax return. However, without proper planning, you could pay more in self-employment taxes.

S-Corp: Tax Savings for Service Businesses
S-Corps are ideal for consultants, freelancers, and online entrepreneurs. By paying yourself a reasonable salary and taking additional income as distributions, you can potentially save thousands in self-employment taxes. The key is compliance—you must maintain accurate payroll records and filings.

C-Corp: Best for Larger Growth
C-Corps are common for startups and businesses seeking outside investors. While they face “double taxation” (profits taxed at the corporate and personal level), they also offer more deductions, benefits, and growth opportunities. With smart planning, a C-Corp can be tax-efficient.

How to Decide
There’s no one-size-fits-all answer. Your income level, industry, and goals all play a role. A tax strategist can run side-by-side comparisons to show you exactly how much each structure will cost—or save—you.

Takeaway: Choosing the right entity is about strategy, not guesswork. Making the right decision now can save thousands and set you up for long-term growth.ir pockets.