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S

S Corporation

Keep your tax burden low while growing your business.

About this structure

An S Corporation is a tax election that lets owners take part of their income as salary and part as distributions — often reducing self-employment tax for profitable businesses.

Best for

  • Profitable LLCs ready to optimize taxes
  • Owner-operators paying themselves a salary
  • Small businesses with up to 100 U.S. shareholders

Key benefits

  • Potential self-employment tax savings
  • Pass-through taxation
  • Personal liability protection
  • Credibility with banks and investors

Other ways to launch

LLC

The business entity type of choice for most business owners.

C Corporation

For big business needs, a C Corporation is the way to go.

Nonprofit

Take a big step towards making the world a better place.