One of the first decisions new business owners face is entity structure. LLCs offer simplicity, pass-through taxation, and limited liability with minimal paperwork. S-Corps add payroll tax advantages. Business owners can pay themselves a reasonable salary and take additional distributions that avoid self-employment tax. For most early-stage businesses starting with under $60,000 in projected profit, an LLC is the better choice. As revenue grows, an S-Corp election (filed with the IRS via Form 2553) can save thousands annually in self-employment tax. Consult a CPA before making the decision.