When we begin working with a new client earning 1099 income, we almost always recommend setting up an S corporation. There are many reasons an S corporation can make sense, the biggest one being that it is a great way to lower your self-employment tax. Let’s dive in and explore why S corporations are one of the most popular forms of doing business.

How should I structure my business? This is a question that every business owner asks when starting out. Let’s do a brief overview of the most common business structures (or “entities”), including sole proprietorships, limited liability companies, s corporations, and c corporations.