Small Business DeskIssue #16 · Jul 7
LLC or S-corp? The decision, without the mystique.
One number tells you the answer. Everything else is noise the internet added.
The number is your net business profit. Below roughly $60–80K, the S-corp election typically costs more in payroll, bookkeeping, and complexity than it saves in self-employment tax. Above that, it usually starts to pay for itself.
Everything else — liability, branding, professional feel — is a separate question and mostly handled by the LLC itself, not the tax election on top of it.