By default, LLCs don’t provide you with tax benefits. LLCs are entities, not tax elections.
1 Jul 2022 · 0 min

0:27
A new LLC is taxed as a disregarded entity, hitting you with a 30-40% effective rate including self-employment tax. Electing S corporation status lets you avoid self-employment tax on most earnings, cutting your total tax burden by 10-15%.










