Self-employed
Should you form an LLC or S-corp as a 1099 contractor?
When forming an LLC or S-corp helps a 1099 contractor, when it doesn't, and how mileage tracking fits into either structure.
By MileTracker · March 8, 2026 · 8 min read
Most 1099 contractors start as sole proprietors. At a certain income level, forming an LLC or S-corp can save real money. Here's the framework.
Sole proprietor — under ~$50k net
Simple. No extra paperwork. Schedule C and pay self-employment tax on net income.
LLC — wanting liability protection
An LLC by itself doesn't change your taxes (still Schedule C) but gives you limited liability protection.
S-corp — over ~$80–100k net
Pay yourself a reasonable salary and take the rest as distributions, saving self-employment tax. Adds payroll complexity.
Mileage works the same
Whatever structure you pick, MileTracker logs the same trips. The deduction lands in a different place on your tax return.
MileTracker detects every drive in the background, lets you classify business or personal in one tap, and exports an IRS-ready PDF and CSV at tax time. Download MileTracker free on the App Store.