One of the most common questions small business owners ask is whether they should operate as an LLC or elect S-Corp tax status. The answer isn't one-size-fits-all — but understanding the difference can potentially save you thousands of dollars in taxes every year. Here's a plain English explanation of both. First — LLC Is a Legal Structure, S-Corp Is a Tax Election This is the most important thing to understand. An LLC (Limited Liability Company) is a legal entity that protec