C corporation (single or multi-member LLCs). The company pays corporate taxes on all profits. Any profit distributions taken by LLC members are also subject to personal income taxes; this is known as double taxation. Members of a C corp don’t have to pay self-employment taxes, but any ...
S corporation (single or multi-member LLCs). Members do not pay self-employment tax. Rather, they set a salary that the company pays them, and they pay employment taxes (Social Security and Medicare) on that amount. Any profit on top of their salary is considered business profit, and it...
C corporation (single or multi-member LLCs). The company pays corporate taxes on all profits. Any profit distributions taken by LLC members are also subject to personal income taxes; this is known as double taxation. Members of a C corp don’t have to pay self-employment taxes, but any ...
A multiple-member LLC is alimited liability companywith two or more owners. This type of LLC is taxed as a partnership, with each owner paying taxes on their share of the profits. A single-member LLC is alimited liability companywith only one owner. This type of LLC is taxed as a sole...
Single-member LLCs come with the protections and benefits that can make all the difference for small business owners and entrepreneurs.