Sole Prop vs LLC vs S Corp vs C Corp: Which One Is Right for You?

(ad) Start your LLC with Bizee: https://startupwise.com/bizee/ ^Start for $0 + state fees Calculate your S Corp salary with RCReports: https://startupwise.com/rcreports/ ^Now only $449 In this video, I go over the four main business structures available to entrepreneurs, sole proprietorship, LLC, S Corp, and C Corp, so you can finally understand what separates them, how each one handles taxes, and why picking the wrong one can cost you more money than you'd expect. Whether you're just starting out or thinking about restructuring an existing business, this is the foundation you need. Run payroll with Gusto here: https://startupwise.com/gusto/ Our favorite business must-haves: 💳 Best business credit cards: https://startupwise.com/creditcards 🏦 Novo (best business bank): https://startupwise.com/novo/ 🖥️ Best AI website builder (/month using code STARTUPWISE): https://startupwise.com/hostinger/ ⚙️ Northwest (best LLC formation service): https://startupwise.com/northwestLLC/ 💰 Payroll with Gusto (get 2 months free!): https://startupwise.com/gusto/ 👨‍💼 Best overseas staffing agency (save 80% on payroll): https://paired.so/startupwise Be sure to watch this video until the end because I'll cover exactly when it makes sense to switch from one structure to another, explain the real tax differences between an S Corp and a C Corp that most people get confused about, and walk you through how to think about each option based on where your business actually is right now. A lot of people choose a structure by default and stay in it for years without realizing there's a better option sitting right there. Choosing the right business structure is one of the highest-impact decisions you'll make as an entrepreneur. This video breaks down sole props, LLCs, S Corps, and C Corps in plain language so you know which fits your income, your goals, and your liability tolerance. If you've been googling 'what business structure should I choose,' this is the video for you. If you found this video helpful, be sure to check out our other videos on: Texas LLC: How to Start a Texas LLC in 7 Steps: https://youtu.be/sd5HgdzRBII How to Track LLC Expenses to Maximize Tax Deductions: https://youtu.be/BUn21NHUA5g Request New Videos Here: https://forms.gle/k9TtfauggkEpAWNQA More tutorials on our website: https://www.startupwise.com Thanks for watching! I hope you have a wonderful day! – Sen #Business #Entrepreneurship #Finance Timeline: 0:00 - Introduction 0:23 - Business Structure Overview 0:44 - Sole Proprietorship Explained 2:38 - LLC Explained 4:32 - S Corp Explained 7:56 - C Corp Explained 9:35 - When to Switch Structures 11:29 - Conclusion Disclaimer: Some of the links above may be affiliate links, meaning I may receive a small commission if you click on them. The commission is paid by the retailers at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your due diligence. We appreciate your viewership! In addition, we are not financial advisors. StartupWise does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your due diligence before making any financial decisions.