Free Tax Calculator · 2026 Rates
S-Corp vs LLC
Tax Savings Calculator
Find out exactly how much you'd save by electing S-Corp status — and whether it makes sense at your income level.
How it works
01
LLC / Sole Prop
You pay self-employment tax (15.3%) on 92.35% of your entire net profit — up to the Social Security wage base of $176,100, then 2.9% above that.
02
S-Corporation
An S-Corp splits your income: you pay yourself a W-2 salary (subject to payroll tax) and take the remaining profit as a distribution — not subject to payroll tax.
03
The Break-Even
S-Corps cost $1,500–$3,500/year to maintain. The break-even is the profit level where payroll tax savings first exceed those compliance costs.