Compare LLC vs S-Corp tax savings with side-by-side analysis, self-employment tax breakdown, and optimal salary sensitivity chart. Free, fast, and private — runs entirely in your browser.
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Enter your business income and expenses. The calculator compares total tax liability under LLC (self-employment tax on all profit) vs S-Corp (salary + distributions split).
Generally when your net profit exceeds $40,000-$50,000/year, the self-employment tax savings from S-Corp can outweigh the additional administrative costs.
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Uses current US tax brackets and SE tax rates. Results are estimates — consult a CPA for your specific situation.
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Compare LLC vs S-Corp tax savings with side-by-side analysis, self-employment tax breakdown, and optimal salary sensitivity chart. Free, fast, and private — runs entirely in your browser.
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| Salary | Distribution | Total Tax | Savings vs LLC |
|---|---|---|---|
| $36,000 (30%) | $84,000 | $20,053 | +$7,998 |
| $48,000 (40%) | $72,000 | $22,417 | +$5,634 |
| $60,000 (50%) | $60,000 | $24,781 | +$3,270 |
| $72,000 (60%) | $48,000 | $27,145 | +$906 |
| $84,000 (70%) | $36,000 | $29,509 | -$1,458 |
| $96,000 (80%) | $24,000 | $31,875 | -$3,823 |
LLC (Sole Proprietorship): All net profit is subject to self-employment tax (15.3% on the first $168,600 for SS + 2.9% Medicare on all earnings). You can deduct 50% of SE tax from your adjusted gross income.
S-Corp: You pay yourself a W-2 salary, and payroll taxes (15.3%) only apply to that salary. The remaining profit passes through as a distribution, which avoids payroll tax entirely.
QBI Deduction: The Qualified Business Income deduction allows a 20% deduction on qualifying business income, subject to income thresholds and other limitations.
Disclaimer: This calculator provides estimates for educational purposes. State taxes, local taxes, credits, and many other factors are not included. Always consult a CPA or tax professional.