Business entity types
Your entity determines the form you file, how owners are taxed, and which planning levers are available. The right CPA matches the entity to your stage and goals — and re-evaluates the choice each year as your business grows.
- Sole proprietor — Schedule C on the owner's 1040, self-employment tax on all profit
- Single-member LLC — disregarded entity by default, same as Schedule C
- Multi-member LLC / partnership — Form 1065 with K-1s to each partner
- S-Corporation — Form 1120-S, reasonable W-2 wages plus distributions
- C-Corporation — Form 1120, flat 21% federal rate, dividends taxed at owner level