LLC vs. S-Corp: The $10K Decision Every Entrepreneur Faces

Nov 20, 2025

In this engaging discussion, tax attorney Braden Drake shares his expertise on vital tax strategies for online entrepreneurs. He highlights common pitfalls, like mixing personal and business finances, and offers solutions to save on taxes. Braden explains the advantages of transitioning from an LLC to an S Corp when profits hit the $60K–$100K mark, potentially saving thousands. He emphasizes smart year-end financial moves, including retirement contributions, to maximize wealth while avoiding IRS red flags.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ADVICE

Separate Business Bank Account

Open and use a separate business bank account to keep finances clean and auditable.
This simplifies bookkeeping and prevents mixing personal expenses with business deductions.

ADVICE

Track Transactions Weekly

Track every business transaction and record deductions in a spreadsheet or bookkeeping system weekly.
Avoid overspending and review unpaid invoices, contractor payments, and tax savings regularly.

ADVICE

Finance Friday Routine

Build a simple Finance Friday routine to do weekly bookkeeping and a monthly profit review.
Doing ten minutes to half an hour weekly keeps you on top of invoices, payments, and tax savings.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Before You Close Your Books This Year, Make These 3 Tax-Saving Moves

When it comes to taxes, most entrepreneurs are winging it and paying the price. I’m joined by my friend and tax attorney, Braden Drake, who breaks down the must-know tax strategies that can save you thousands and help you feel confident about your business accounting.

Whether you’re already making six figures or simply want to feel prepared when it comes to bookkeeping, Braden is here to demystify LLC vs. S Corps, deductions, and the smartest year-end money moves you can make.

In this episode, we tackle the common tax mistakes online business owners make, how to structure your business for long-term savings, and what you can do right now to set yourself up for a stress-free tax season.

HERE ARE THE 3 KEY TAKEAWAYS FROM THIS EPISODE:

1️⃣ Stop Mixing Business & Personal Finances – One of the most common (and expensive) mistakes entrepreneurs make is skipping a separate business bank account. Keep your finances clean and organized to avoid audit headaches and missed deductions.

2️⃣ Understand the S Corp Advantage – Braden explains exactly how switching from an LLC to an S Corp (when your profit hits around $60K–$100K) can save you thousands each year and why getting this wrong could trigger IRS red flags.

3️⃣ Don’t Spend Just to “Save” on Taxes – The smartest entrepreneurs don’t buy their way into write-offs. Instead, they focus on year-end strategies that actually build wealth, like opening a retirement account, catching up on bookkeeping, and planning for profit with intention.

RESOURCES MENTIONED IN THIS EPISODE:

Get your copy of Unf*ck Your Biz: A Step-by-Step Framework to Get Your Legal and Tax Shit Legit

Subscribe to Unf*ck Your Biz

Check out Gusto

Get your copy of Profit First by Mike Michalowicz

MORE FROM BRADEN

Learn more about Braden’s offerings at notavglaw.comFollow Braden on Threads and Instagram: @notavglaw

MORE FROM ME

Follow me on Instagram @amyporterfield

SUBSCRIBE & REVIEW
If you loved this episode, please take a moment to subscribe and leave a review on Apple Podcasts! Your support helps us reach more entrepreneurs who need these insights. 🎙 Thanks for tuning in to The Amy Porterfield Show! See you next week!