Business Entity Tax Planning: LLC, S-Corp, C-Corp Guide 2026
The entity structure you choose for your business determines how much of your profit goes to taxes — and for entrepreneurs earning $200,000 or more, that difference can easily exceed $20,000 per year. Self-employment tax alone sits at 15.3% on the first $184,500 of net earnings in 2026, according to the Social Security Administration. The right entity structure either eliminates or dramatically reduces that liability.This guide covers the core tax treatment of LLCs, S-corps, and C-corps in 2026. It explains when each structure works best, how the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, changed the math on pass-through income, and what decisions need your attention now. The 2026 tax landscape is meaningfully different from prior years. The QBI deduction is permanent. Bonus depreciation is back at 100%. And the QSBS exclusion just got a $5 million increase.
