Short answer
An LLC is the simplest way to start. The S-Corp election can save self-employment tax once the business has steady profits, but it requires paying yourself a reasonable salary through payroll.
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The simplest way to start.
Can save self-employment tax once the business has steady profits, but it requires paying yourself a reasonable salary through payroll.
An LLC can elect to be treated as an S-Corp by filing Form 2553. For the election to apply from the start of the year, it must be filed no later than 2 months and 15 days after the beginning of the tax year. It pays to run the numbers before deciding.