LLC, S-Corp, or Just “Winging It”? Here’s What You Actually Need to Know

Starting an online business shouldn’t require a law degree. But a quick Google search will drop you into a sea of acronyms and conflicting advice—especially from that one guy on YouTube who swears by forming a Wyoming LLC, even though he lives in Florida.

Let’s clear things up

An LLC (Limited Liability Company) is a legal structure that separates your personal and business assets. That means if your business faces legal or financial trouble, your personal bank account, car, or even your grandma’s antique teapot are usually protected.

  • Sole Proprietor: Simple to start, but offers no legal separation between you and your business.
  • LLC: A balanced choice—affordable, flexible, and protective.
  • S-Corp: Not a business structure but a tax election. It may reduce taxes if you’re earning $70K+ in profit, but comes with added compliance and payroll requirements.

If you’re starting as a freelancer, coach, consultant, or ecommerce entrepreneur, an LLC is often the smart middle ground. It shows you’re serious—without overcomplicating your setup.

Yes, you can file for an LLC yourself. But if dealing with government forms and outdated websites isn’t your thing, it’s better to outsource it. A small mistake—like choosing the wrong state—can cost you later.

An LLC builds trust, protects your assets, and sets you up for future growth. Don’t overthink it—but don’t leave it to chance, either.