🏛️assessment≈ 45s · 7 inputs
Entity Right-Fit Quick Check
Interactive Tool
≈ 45s
Entity Right-Fit Quick Check
Seven quick inputs. One directional call: LLC, S corp, or C corp — plus the one-sentence reason.
Revenue minus reasonable business expenses — what flows to your personal return today.
$
The bracket your next dollar of income falls into — not your average rate.
Are you reinvesting most profits back into the business rather than pulling them out?
Do you plan to raise institutional (priced) equity in the next 2–3 years?
Venture funds and most priced rounds require Delaware C corp structure.
Do you have — or are you planning to hire — W-2 employees?
Willing to run formal W-2 payroll on yourself each pay period?
An S corp election is only valid if you pay yourself reasonable compensation as a W-2 employee.
Do you plan to hold the business for 5+ years and potentially sell it?
Section 1202 QSBS can exclude up to $10M of gain on qualifying C corp stock.
Your recommendation
Answer all seven questions on the left and the directional recommendation appears here.
Related reading
📘→
S Corp vs. C Corp vs. LLC: Tax and Personal Liability Implications for Owners
7 min · guide
Disclaimer: Directional guidance, not tax, legal, or financial advice. Always confirm with your CPA or attorney before acting. See worthune.com/disclaimer.