I have a new business. How do I know if I should set up an LLC or an S Corp?

They each have benefits. With an LLC, you have flexibility of partner distributions and how you allocate partner income.

With an S Corp there’s an opportunity for savings on your self-employment taxes and also streamlining the distributions and net income based on ownership percentage.

It all depends on your income levels and how many partners or shareholders there are involved and what kind of business you’re in.

So talk to your accountant and see which one is best for you.