A good business structure is the first step to reducing risk and paying less taxes.
An LLC is not a tax structure. There is no such thing as an “LLC Tax Return”. The LLC can elect to be taxed as an S-Corporation, Partnership, or any other structure. If no election is made and you are the sole owner, you will be treated as a sole proprietorship. If there are multiple members, you will be treated a…s a general partnership by default.
The sole proprietorship (Schedule C) is a bad business structure. It puts everything you own at risk and subjects you to an excess tax of 15.3 percent self-employment tax on all net income. You are also taxed at the individual rate as well. If you own a business incorporate!