09/26/2026
If you operate as a sole proprietor or a single-member limited liability company and your business is consistently profitable, you may have heard that electing S corporation status can reduce self-employment taxes. In some cases, this is true — but only if the numbers justify the added complexity. Click through to see how the S corporation election works, what it requires and whether the potential tax savings outweigh the added costs.
If you operate as a sole proprietor or a single-member limited liability company and your business is consistently profitable, you may have heard that electing S corporation status can reduce self-employment taxes. In some cases, this is true — but only if the numbers justify the added complexity....