01Different structures, different returns
A sole proprietor or single-member LLC typically reports business income on Schedule C. Partnerships file Form 1065, S-Corps file Form 1120-S, and C-Corps file Form 1120. Each comes with its own rules and costs.
02How will you pay yourself?
Owner draws, guaranteed payments, salary, and dividends are treated differently depending on structure. Understanding the trade-offs is central to choosing well.
03Weigh the administrative load
More formal structures can bring additional payroll, bookkeeping, and filing requirements. Make sure the potential benefits outweigh the added work and cost for your situation.
04Get advice for your numbers
The best structure depends on your income, goals, and state rules. A conversation with a tax professional, using your actual figures, is the safest way to decide.
Educational primers prepared for this website. General information only — not personalized tax, legal, or financial advice.