For a solo consultant at ~$120k, here's the quick shape of it: - **LLC (default taxation):** simplest to set up and run; all profit is subject to self-employment tax. - **LLC with S-corp election:** lets them split income into a reasonable salary (payroll taxes) plus distributions (no SE tax) — often saving a few thousand a year at this income, but with added payroll/admin overhead. At $120k it's usually worth the S-corp election, but it depends on how much they'll pay themselves and their appetite for paperwork. Want me to note the tradeoffs in a short memo for them?

Here's a short memo: **LLC vs S-corp — [Client]** At ~$120k projected income, forming an LLC and electing S-corp taxation is likely worthwhile: it can reduce self-employment tax by splitting a reasonable salary from distributions. Tradeoff: you must run payroll and file an extra return. **To elect S-corp status:** 1. Form the LLC with the state. 2. Get an EIN from the IRS. 3. File **Form 2553** (S-corp election) within the deadline. 4. Set up payroll and pay yourself a reasonable salary. Recommend looping in their accountant on the salary figure. Want me to add our fee estimate?