LLCs and corporations (selecting sub-chapter S status) are fairly similar in that income (and loss) pass through to the owners. It's really hard to say which is better for you, as there are many factors that might go into making the decision. Best thing to do is go to your state's Corporations Division website. They'll have plenty of info there. If you're not comfortable or unsure after that you might want to consult your accountant, CPA or tax attorney.