LLC vs. S Corporation

The difference Between LLC vs. S Corporation is S corp saves self-employment tax, However, you will have to file an individual S–corp tax return.

One major advantage of an S corporation is that it provides owners limited liability protection, regardless of its tax status. Limited liability protection means that the owners’ personal assets are shielded from the claims of business creditors—whether the claims arise from contracts or litigation.

Many LLC vs. S Corporation chooses the S corporation for its tax status because It avoids the double taxation situation of corporations. S corporation owners can take the QBI deduction on business income (not employment income) Owners pay Social Security/Medicare tax only on employment income.