S-Corp vs LLC Tax Calculator
Compare tax obligations for S-Corp vs LLC business structures. See self-employment tax savings, payroll costs, and total tax burden side by side.
Results
LLC / Sole Prop
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Self-Employment Tax
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Income Tax
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Total Tax
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Effective Rate
S-Corporation
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Total Payroll Tax
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Income Tax
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Total Tax
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Effective Rate
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S-Corp Salary
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S-Corp Distribution
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Annual Tax Savings
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SE/Payroll Tax Difference
Frequently Asked Questions
How does an S-Corp save on taxes compared to an LLC?▾
An S-Corp lets you split income between salary (subject to payroll tax) and distributions (not subject to self-employment tax), potentially saving 15.3% on the distribution portion.
What is a reasonable salary for an S-Corp?▾
The IRS requires S-Corp owners to pay themselves a reasonable salary comparable to what similar businesses pay for similar services. This tool helps you see the tax impact at different salary levels.
When does it make sense to elect S-Corp status?▾
Generally, S-Corp election becomes beneficial when your net business income exceeds $50,000-$60,000 per year, as the payroll tax savings outweigh the additional filing and payroll costs.
Is my financial data safe?▾
Yes. All calculations happen entirely in your browser. No data is ever sent to a server.