What entity structure should I be?
Sole Proprietorship
Pros
- Easy and cheapest to set up (<$50)
- Avoid franchise tax (~$800/yr)
Cons
- Virtually no liability protection
- Unable to optimize cash flow through business deductions
- Full Self-Employment Tax
LLC
Pros
- Low formation cost (<$100)
- Personal asset protection
- Cash flow optimization through business deductions
Cons
- Full Self-Employment Tax
- Subject to franchise tax (~$800/yr)
S-Corporation
Pros
- Minimize self-employment tax → overall tax
- Personal asset protection
- Cash flow optimization through business deductions
Cons
- Need to run payroll for employees
- Subject to franchise tax (~800/yr)
Some Feedback
Hear From Our Customers





Clearbooks CPA was very communicative and organized and helped save me the most money possible. Was informed about the best way to deal with Bitcoin and crypto taxation. 10/10 would recommend.
Sai Vuppala
@Sai Vuppala, 3 months ago
I started an export/import and distribution business last year and my finances were a complete mess with my previous CPA. After my initial meeting with Sugam Sharma I knew he was the right fit for my company and I...
Shayer Aziz
@Shayer Aziz ,18 hours ago
Sugam provided exceptional service to me and my eCommerce business. He was able to help me with my sales tax filings in multiple states while also providing metrics to help me scale my business. As a CPA he has saved me a...
Rian Kapadia
@Rian Kapadia, a month ago

