You are right about that, and I probably should've mentioned it in my comment. But I feel it's a niche case for these reasons: 1) The benefit only applies to p

You are right about that, and I probably should've mentioned it in my comment. But I feel it's a niche case for these reasons: 1) The benefit only applies to profits above "a reasonable salary". You need to determine and potentially later defend what you chose as a "reasonable salary". 2) Once you have over ~150K income (including your day job's salary and LLC profit), social security taxes phase out so most of the benefit is gone (just the medicare portion remains), unless you have a HUGE LLC profit. 3) There's overhead in filing taxes on an s-corp. All this probably makes sense if you have >$100K LLC profits and no other big income source, or maybe if you have >$500K LLC profits regardless. You'll def want an accountant. Companies like Collective.com exist to make it easier to go the s-corp route if you choose to go that way. But it is complicated for some minor savings.