LLCs enjoy numerous tax advantages, which will help save you money. For example, LLCs avoid double taxation. While corporations pay taxes twice on the same profit (as business income and again as owner income), LLC shareholders are only taxed once on profits in their personal income.
Secondly, LLCs are eligible for the Qualified Business Income deduction (QBI), developed to help reduce the tax rate or obligation for small business owners. With the QBI deduction, up to 20 percent of your business income can be claimed as a deduction.
Additionally, LLCs can deduct health insurance premiums for the employed owner and family, as well as deduct the premium for disability insurance for business employees, including the owner. Office supplies and connectivity, charitable donations, home office expenses, and business vehicle/mileage also can be deducted.