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A single-member limited liability company (SMLLC) pays taxes just like every other individual taxpayer according to the individual income tax rates published by the Internal Revenue Service.
For many of these so-called lifestyle businesses, the S corporation entity is a perfect choice for a business entity. You may already be asking yourself how are S corporations both similar and different to C corporations? What makes an S corporation a good fit for a lifestyle business?
A general partnership is easy to start, does not require filing any paperwork with your particular state, and doesn’t require certain compliance activities such as recording minutes of meetings. Each partner can also deduct their share of business expenses on their individual tax return.
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