LLC vs S-Corp Calculator

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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How to Use LLC vs S-Corp Calculator

1Enter your annual business revenue and expenses.
2Set your filing status and desired S-Corp salary.
3Compare total taxes under LLC vs S-Corp.
4Review the salary sensitivity chart for optimal savings.

Frequently Asked Questions

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.

Yes, completely free with no sign-up required. Use it as many times as you need.

Uses current US tax brackets and SE tax rates. Results are estimates — consult a CPA for your specific situation.

Get weekly tips for LLC vs S-Corp Calculator & more

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About LLC vs S-Corp Calculator

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.

NexTool's LLC vs S-Corp Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.

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Compare Options

Comparison · 2 options reviewedSole Proprietorship vs. LLC: Which Business Structure Is Right for You?Compare sole proprietorships and LLCs on liability protection, taxes, formation costs, and compliance. Choose the right business structure for your venture.

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LLC vs S-Corp Calculator

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.

Share Y

Disclaimer

This is a simplified estimate based on 2024 US Federal tax rules. It does not account for state taxes, all deductions, credits, or the QBI phase-out. Consult a CPA for your specific situation.

Filing Status

Annual Revenue ($)

Business Expenses ($)

S-Corp Reasonable Salary ($)

IRS requires a "reasonable salary" for S-Corp owners

Revenue: $150,000 − Expenses: $30,000 = Net Profit: $120,000

LLC (Sole Proprietorship)

$28,051

total tax burden

Self-Employment Tax (15.3%)$16,955

SE Tax Deduction (50%)-$8,478

QBI Deduction (20%)-$24,000

Taxable Income$72,922

Federal Income Tax$11,096

Effective Rate23.4%

Take-Home$91,949

S-Corp Election

$24,781

total tax burden

Salary (W-2)$60,000

Distribution (no payroll tax)$60,000

Payroll Tax (on salary only)$9,180

QBI Deduction (on distribution)-$12,000

Federal Income Tax$15,601

Effective Rate20.7%

Take-Home$95,219

Potential Annual Tax Savings with S-Corp

$3,270

That's $273/month more in your pocket

Tax Burden Comparison

LLC$28,051

S-Corp$24,781

Recommendation

An S-Corp election could save you approximately $3,270/year. This likely justifies the additional costs of payroll processing and a separate S-Corp tax return.

S-Corp Additional Costs (est.)

$1,000 - $2,000/year

Payroll service + S-Corp tax return (Form 1120-S)

Net Benefit After Costs

$1,770 - $2,270

After accounting for filing costs

S-Corp Salary Sensitivity Analysis

How different salary levels affect your S-Corp tax savings.

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

The IRS requires S-Corp owners to pay themselves a "reasonable salary" comparable to what other businesses pay for similar services. Typically 40-60% of net profit.

How It Works

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.

Save your results

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Share your result

Share Y

Estimate Mortgage Generate Passwords Format JSON

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Pro members get the most out of LLC vs S-Corp Calculator

PDF Reports

Download detailed reports with charts and breakdowns

AI Analysis

Get personalized insights and recommendations

Unlimited Access

No daily limits on any tool or calculator

Try Pro Free for 7 DaysThen $9.00/mo · Cancel anytime

Try Accounting Software

Automate bookkeeping and tax prep for your business.

Start Free Trial

Find a Tax Professional

Get expert advice on your business structure.

Find a CPA

Sponsored · We may earn a commission at no cost to you

How to Use LLC vs S-Corp Calculator

1Enter your annual business revenue and expenses.
2Set your filing status and desired S-Corp salary.
3Compare total taxes under LLC vs S-Corp.
4Review the salary sensitivity chart for optimal savings.

Frequently Asked Questions

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.

Yes, completely free with no sign-up required. Use it as many times as you need.

Uses current US tax brackets and SE tax rates. Results are estimates — consult a CPA for your specific situation.

Get weekly tips for LLC vs S-Corp Calculator & more

No spam. Unsubscribe anytime.

About LLC vs S-Corp Calculator

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.

Embed This Tool

Add LLC vs S-Corp Calculator to your website. Paste the code below into your HTML. The iframe auto-resizes to fit the tool content.

Width

Height

px or %

<iframe src="https://getnextool.com/embed/llc-vs-scorp-calculator" width="100%" height="600" frameborder="0" style="border:0;border-radius:12px;" loading="lazy" title="LLC vs S-Corp Calculator - NexTool"></iframe>
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