LLC vs S Corp vs C Corp

Overview

If you’re searching LLC vs S Corp for tax savings or best business structure for consultants, you’re likely trying to reduce taxes without creating compliance problems. Business structure directly affects how you’re taxed, how payroll works, and how much flexibility you have as you grow. There is no one-size-fits-all answer — the right choice depends on profit, risk tolerance, and long-term goals.

Understanding the three main structures

LLC

Limited Liability Companies are flexible and easy to set up.
They work well for early-stage businesses but often lead to higher self-employment taxes as income increases.

S Corporation

S Corps can reduce self-employment taxes when structured correctly.
They require payroll, reasonable salary rules, and ongoing compliance.

C Corporation

C Corps are useful for specific growth or reinvestment strategies but are rarely ideal for small service businesses due to double taxation.

Why guessing costs money

Choosing a structure based on advice from friends or social media often leads to:

• overpaying self-employment taxes

• payroll issues

• IRS scrutiny

• expensive corrections later

A CPA models scenarios so structure decisions are based on numbers, not opinions.

How Avocet International CPAs helps

At Avocet International CPAs, we evaluate:

• current and projected profit

• payroll requirements

• compliance obligations

• long-term growth or exit goals

Structure should support your strategy — not work against it.

Suggested links

• IRS: Business structures
  https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

• SBA: Choose a business structure
  https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

• Florida Division of Corporations
  https://dos.myflorida.com/sunbiz/

FAQ

Is an S Corp always better?
No. It depends on profit and reasonable salary rules.

Can an LLC become an S Corp?
Yes. Many LLCs elect S Corp tax status later.

Will changing structure trigger issues?
It can if done incorrectly, which is why guidance matters.