Side-by-Side Comparison · Tax Impact · Structure Quiz
| Feature | Sole Prop | LLC | S-Corp |
|---|---|---|---|
| Formation Cost | $0 | $50-500 | $100-800 |
| Liability Protection | None | Full | Full |
| Self-Employment Tax | 15.3% all | 15.3% all | Only on salary |
| Pass-Through Tax | Yes | Yes | Yes |
| Annual Filing | Schedule C | Schedule C / 1065 | Form 1120-S |
| Annual Compliance | Minimal | Moderate | High |
| Ownership Flexibility | 1 person | Unlimited | Max 100 |
| Raise Investment | Hard | Possible | Easy |
| Credibility | Low | High | Very High |
| Best For | Side hustles, testing ideas | Most small businesses | $80K+ profit, tax savings |
See how much you could save with S-Corp election
| Service | LLC Price | S-Corp Price | Registered Agent |
|---|---|---|---|
| ZenBusiness | $0 + state fee | $0 + state fee | $199/yr |
| Incfile | $0 + state fee | $0 + state fee | $119/yr |
| LegalZoom | $79 + state fee | $149 + state fee | $249/yr |
| Northwest | $39 + state fee | $39 + state fee | $125/yr |
Prices as of 2025. State filing fees vary ($40-$500 depending on state).
⚖️ This comparison is for educational purposes only and does not constitute legal or tax advice. Business structure decisions have significant legal and tax implications. Consult a qualified attorney and CPA before forming any business entity.