There is no easy answer when it comes to choosing between an LLC and an S corp for tax purposes. The reason is that a single-member LLC can elect to be taxed as a sole proprietor, or as an S corp. As long as one’s income is high enough, generally it will be better to elect to be taxed as an S corp: That way a certain amount of the business’s profits can be taken as owner’s drawings/distributions, and not be subject to full self-employment tax.