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THE RIGHT STRUCTURE, MADE SIMPLE

Start Smart
With An LLC

Keep things simple with a flexible LLC today.
Upgrade to an S-Corp when your profits grow.

Still not sure? Review entity types here.

Excellent 4.8 out of 5 stars 28,225 reviews Trustpilot logo

Formation and compliance

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Tax advice and filing

Expert customer support

People Also Asked

No — an S Corp isn’t an LLC. It’s a tax designation that an LLC or corporation can choose if they meet the IRS’s criteria.

It depends on your goals. LLCs are simpler to run, while S Corps can offer tax savings once profits grow. ZenBusiness helps you compare both options side by side.

Owners of an S-Corp can pay themselves a salary from the company. They’ll pay employment taxes on that salary, but they won’t have to pay self-employment taxes on the remaining profits. This could mean substantial savings and is one of the benefits of an LLC filing as an S-Corp. (Note that the LLC members will still be responsible for income and other applicable taxes on the profits.)

Usually when your business earns consistent profits — often around $40,000+ in annual net income. ZenBusiness can help you decide when it’s the right time to switch.

It varies by business, but many owners see benefits once they’re earning steady income and paying significant self-employment taxes. See what works best for you with ZenBusiness.

Your business type options

Business formation options have unique features and benefits. Use this table to determine which is right for you.

LLC

S-Corp

LLC

The simplest, most flexible way to structure your business to protect personal assets.

How It's Unique

  • Unlimited owners (members) allowed
  • Cannot issue stock
  • Board of directors not required

Protections & Taxation*

  • You're not personally on the hook for business liabilities
  • Pass through taxation—income generated passes to the LLC owners to file on their personal taxes.

Drawbacks to Consider

  • Ongoing filings and fees to stay in compliance
  • LLCs can't go public
  • Not recognized globally; you may be taxed as a corporation outside U.S.

Starts at $0 + state filing fees

S-Corp Election

A tax designation for LLCs that avoids double taxation on business profits.

How It’s Unique

  • Maximium of 100 owners
  • S-Corp is a tax status for LLCs and not an official business entity type
  • Owners must pay themselves a reasonable salary for their industry
  • Avoids double taxation on profits

Protections & Taxation*

  • LLC owners filing as an s-corp can save money on their personal taxes
  • Pass through taxation—similar to an LLC, profits are only taxed at the owner level

Drawbacks to Consider

  • Ongoing filings and fees to stay in compliance
  • All owners must be U.S. citizens and meet all IRS requirements
  • Closer IRS scrutiny for the business

Starts at $0 + state filing fees

*ZenBusiness does not offer tax advice. We recommend you discuss questions or concerns about tax implications and benefits with an accountant or tax professional.

Don't do it alone.

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experts available by phone to answer questions,
7 days a week. Let us handle the details so you
can focus on what you do best.

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Trustpilot logo 4.8 out of 5 stars 4.8 28,225 reviews • Excellent
MA

Maegan

2 reviews US
March 18, 2024

Continually friendly service from ZB

I called their support line and received amazing help from Josh. After a long stressful day, he managed to put a smile on my face and was able to help me resolve my issue.

Date of experience: March 18, 2024
MG

Mary

1 review US
March 18, 2024

Customer service was great.

Thank you Tanisha G, for assisting me in my questions.

Date of experience: March 18, 2024
MC

Mark

1 review US
March 18, 2024

Christian B was patient with me…

during a lengthy phone call- approx 1 hour. He helped me with a pop up I wanted to add to my website. My issue was resolved. He was professional and kind. Thank you for your help!

Date of experience: March 18, 2024
RB

Rick B

1 review US
December 7, 2022

I had no idea what to do to form my LLC…

I had no idea what to do to form my LLC. Zen made it painless and easy with multiple plans to choose from. Everything was A-plus handled and explained

Date of experience: December 07, 2022
TB

Timothy Baxter

1 review US
April 14, 2021

Great package deals with Zen Business

Zen Business gave me easy access to packages that are affordable and very helpful. The website page was easy to use and explained everything perfectly. Great job by Zen Business in creating such a great business format.

Date of experience: April 14, 2021
RW

Rodney Williams

1 review US
October 2, 2024

Tanisha G was outstanding

Tanisha G was superb. Thoughtful, insightful, proactive and most of all patient! I’m an instant and grateful fan

Date of experience: October 02, 2024
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