Can an S Corp Have a Single Owner?
Yes, an S Corp can have a single owner.
Can You Be a Sole Proprietor and an LLC?
You cannot be a sole proprietor and an LLC at the same time. But you can choose to transition from a sole proprietorship into an LLC.
Can Sole Proprietors Become an S Corp?
A sole proprietor cannot become an S Corp without creating an LLC. After creating an LLC, the business owner can choose an S Corp tax status.
Are There Any Famous Companies That Are S Corps?
An S Corp cannot have more than 100 shareholders. With that, most famous companies you see are C corporations, not S Corps. However, many successful small business owners enjoy the tax advantages and liability protections that S Corps have to offer.
How Does a Sole Proprietor Become an S Corp?
The transition from a sole proprietorship to an S corp is not direct. Instead, you’ll need to form an LLC. After the LLC is formed, the business owner can elect an S Corp status.

Final Word

A sole proprietorship is an easier business structure to start. But the tax savings opportunities and liability protection may an S corp an attractive option for many. When choosing an S Corp vs. sole proprietorship, weigh your options carefully. If you want to get the ball rolling now, you might decide to start as a sole proprietor and create an LLC in the future.

About the Authors

Sarah Sharkey

Written by: Sarah Sharkey

Personal Finance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make better financial decisions. Sarah enjoys traveling, hiking and reading when she is not writing.

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Joe Templin, ChFC

Reviewed by: Joe Templin

ChFC - Charted Financial Consultant

Joe Templin is a Charted Financial Consultant (ChFC), MCEC, CEC, CLU and CAP with well over three decades consulting, coaching, and teaching. He's an author of the Amazon Kindle #1 New Release "Every Day Excellence" and host of The Human Kaizen Podcast.

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Kal Salem

Fact checked by: Kal Salem

MA Accounting - Arizona State University

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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