AmyC
Expert Alumni

Get your taxes done using TurboTax

An LLC is just a legal entity, it is not a tax entity. Once you establish that you are an LLC, if you file no other paperwork, you are a sole proprietor by default.

As a start up, it is cheaper and easier to be just the LLC sole proprietor until you decide if you want to switch over to S Corp. Refer to Business structures by the IRS. It offers the pros and cons along with which benefits are available. The S- Corp requires more paperwork and you must issue yourself a w2.

 

No matter what option you choose:

Reference:

Self-employed individuals tax center 

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