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How to Choose Between an LLC and S-Corp in Texas for a Two-Owner Consulting Business (2026 Tax Rules)

For most two-owner Texas consulting firms, an LLC taxed as an S corporation can reduce self-employment taxes when each owner’s W-2 “reasonable salary” is set correctly. Texas imposes no state personal income tax, so the decision hinges on federal payroll taxes, admin burden, and liability/governance. This article compares LLC vs. S-corp paths under 2026 federal […]

Legal Steps for Business Survival: Comprehensive Guide to Restructuring

How to Structure an S-Corp in California to Minimize Self-Employment Tax on 2026 Distributions

Business Tax Issues / Jack Gilbert

In California, an S‑corp can reduce self‑employment tax because only “reasonable compensation” paid as W‑2 wages is subject to FICA, while the remaining 2026 profits may be distributed outside payroll taxes. This structure is most effective for owner‑operators who can document market‑rate salary, maintain payroll compliance, and separate wages from distributions. This article explains how

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