S Corp vs LLC: When the Tax Savings Are Actually Worth It
S Corp vs LLC: When the Tax Savings Are Actually Worth It It's February. Tax season is here, and if you're a business owner, you've probably heard someone say, "You need to switch to an S Corp : the tax savings are huge." Maybe you've been wondering if it's true. Maybe you've been putting off the decision because it feels complicated. Or maybe you've already made the switch and you're not sure if it was the right call. Here's what I want you to know: S Corp election can absolutely save you thousands of dollars a year in taxes : but only if your business is at the right stage. And that stage has a number attached to it. Let me walk you through when the tax savings are actually worth it, what the math really looks like, and when sticking with your LLC is the smarter move. The Real Question You Should Be Asking Most entrepreneurs ask, "Should I be an S Corp or an LLC?" That's not quite the right question. An LLC is a le...