BUSINESS ENTITY FORMATION
You could save thousands on your taxes
As a sole proprietor, all your profits are subject to self-employment tax. By forming your LLC with an S Corp election, you could change that. Get started in just 10 minutes.
Types of business structures at a glance
What is an LLC?
A Limited Liability Company (LLC) is one of the most popular and versatile of business structures. Great for smaller organizations, LLCs are legal entities formed at the state level. They can have 1 or multiple owners.
Why form your LLC?
- Limited liability protection! In many cases, you can reduce or even eliminate your personal responsibility for business liabilities and debts. You could protect your personal assets, such as your vehicle, house, and savings account in the event your LLC faces bankruptcy or lawsuits.
- The record-keeping requirements are generally more simple, compared to corporations.
- You’ll have the flexibility to choose how your business is taxed.
What are the tax implications?
- Members of an LLC are generally considered self-employed.
- LLCs can elect how they are taxed, depending on their structure.
- You’ll be required to pay tax contributions to Medicare and social security.
What is an LLC + S Corp?
It’s all the benefits of forming an LLC with the added tax perks of an S Corp election. In short, it lets you avoid double taxation of your personal and business income. When you form your LLC + S Corp with ArnTax, we first help you create an LLC, then file the S Corp election.
Why form your LLC with an S Corp election?
- To avoid paying corporate tax rates.
- To keep from being double taxed on your personal and business income.
- You can limit tax liability on social security and Medicare by paying yourself as an employee.
What are the tax implications?
- An LLC with an S Corp election keeps you from being double taxed on your personal and business income.
- You’ll pay yourself as an employee of the LLC, which means you can limit your tax liability for social security and Medicare.
- Your tax rate is income-based, so you may enjoy lower tax rates than corporations.
What is a C Corp?
A C Corp is a business structure for companies that potentially plan to go public one day, since unlimited shareholders are allowed.
Why form your C Corp?
- The issuance of stock can help attract and retain employees and investors alike.
- There’s no limit to the number of shareholders.
- Your company will have the potential for unlimited life and plenty of room to grow.
What are the tax implications?
- Income is taxed twice: once at the corporate level and again at the shareholder level when dividends are paid.
Why form your small business with ArnTax?
Fast turnaround time
When you register with ArnTax, your documents are prepared and filed with the state quickly — usually within 1 day for express orders.
Save time and avoid errors
We’ll help you form your business with confidence, ensuring the correct forms are submitted, saving you time and money, with 100% satisfaction guaranteed.
Potential tax savings
As a sole proprietor, all your profits are subject to self-employment tax. By forming your LLC with an S Corp election, you could potentially save thousands in taxes.
Which business structure is right for me?
Whether you’re already in business or still in the planning phase, the right structure could offer protection or potentially save you money on your taxes. Answer few questions and our advisor helps you find the right fit.