Entity Planning

Your entity choice sets the baseline for almost every other tax decision in your business. It determines whether income is taxed once or twice, whether you owe self-employment tax on all of your profit, how you can pay yourself, and which retirement and fringe benefit options are available. It also affects state taxes, liability planning, and how easy or hard it will be to sell the business later.

The guides in this hub explain how each common entity is generally taxed and when owners typically consider a change. You will find a walkthrough of the S corporation election, a comparison of LLC and S corporation treatment, a look at C corporation planning, and guidance on multi-entity structures such as holding and management companies.

How to Use This Hub

If you are still deciding on a structure, start with the overview of entity structure at higher income levels and the LLC taxation guide. If you already have an LLC and are asking whether an S corporation election makes sense, read the switching guide and the savings illustration next. If you already operate as an S corporation, the eligibility and pitfalls guide covers the ongoing rules that often trip owners up.

Entity decisions are rarely one-size-fits-all. State franchise taxes, payroll costs, owner compensation rules, and your long-term exit plans can all change the answer. Use these guides to build your list of questions, then confirm the details with a qualified advisor before making an election or forming a new entity.

Guides in Entity Planning

Educational purposes only. This page is general education and is not tax, legal, or accounting advice. Tax laws change and outcomes depend on individual facts, so consult a qualified professional before acting. No result is guaranteed.