There is no single best structure, only the best structure for how you earn, grow, and pay yourself. Here is how the common choices compare before we run your numbers.
Sole Proprietorship & Single Member LLC
Simplest to runIncome flows to your personal return on Schedule C with minimal formality.
Self employment tax appliesAll net profit is subject to self employment tax.
The LLC adds liability protectionThe tax picture stays the same, but your personal assets gain a legal shield.
S Corporation
Salary plus distributionsOwners take a reasonable salary; remaining profit avoids self employment tax.
More compliancePayroll, a separate return, and stricter records come with the savings.
Best at consistent profitTypically worth a look once profits comfortably clear owner pay.
C Corporation
Flat corporate rateThe company pays its own tax; dividends are taxed again personally.
Built for reinvestment and investorsPreferred for venture funding, stock plans, and retained earnings.
Rarely the defaultDouble taxation makes it the exception for small firms, not the rule.
Entity choice touches taxes, payroll, liability, and your exit. Schedule a consultation and Alder & Finch will model the options with your real numbers.
Please note
The information on this page is provided for general reference and may change. It is not tax, legal, or financial advice and does not account for your specific situation. Confirm current details with the appropriate authority or speak with us before acting. We assume no liability for decisions made from this page.