MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Why You Should Choose An S-Corp Over an LLC

1 Nov 2025 · 1 min

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Mark Kohler explains why small-business owners earning $4,000–$6,000 monthly should elect S-corp status. An S-corp lets you pay yourself a salary, which cuts self-employment tax and reduces audit risk compared to an LLC. LLCs alone don't lower taxes because you can't take a salary from them.

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When you're making that four to five, maybe $6,000 a month, you are a perfect candidate to consider the S corporation and start doing some reasonable comp planning. And you know what's crazy actually using an S corporation makes you far less likely to get audited compared to filing as a regular LLC or sole proprietorship. And this, my friends, is a common mistake thinking that an LLC is going to save taxes in and of itself. It doesn't. It is not going to be able to save you self employment tax. You cannot take a salary out of a basic LLC on a sole proprietorship. Just use the S corporation.