As far as taxes are concerned, I understand that a single-person LLC is really no different than a sole proprietorship. The income from the LLC is passed through on your taxes (LLC isn't recognized by the IRS) and taxed the same as extra income plus self-employment tax.
After doing research, I decided against forming an LLC for my side-business (software) since it's just me and I don't expect to have any liability issues.
It's much more important to form a legal entity when you have a partner that you need to split profits with. In this case, I'm leaning toward S-Corp as it allows a lot more flexibility than LLC and doesn't require that you pay self-employment tax on disbursements as long as you take a reasonable salary.
After doing research, I decided against forming an LLC for my side-business (software) since it's just me and I don't expect to have any liability issues.
It's much more important to form a legal entity when you have a partner that you need to split profits with. In this case, I'm leaning toward S-Corp as it allows a lot more flexibility than LLC and doesn't require that you pay self-employment tax on disbursements as long as you take a reasonable salary.