LLC vs S-Corp Tax Calculator
Enter business income and salary to see LLC vs S-Corp SE tax difference and annual savings.
Compare the self-employment tax burden of a single-member LLC (where all net income is subject to SE tax) versus an S-Corporation (where only the owner-salary is subject to payroll tax). Shows annual tax savings and whether an S-Corp election makes financial sense for your income level.
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Last reviewed: April 2026Report an error
IRS requires S-Corp owners to pay themselves a reasonable salary
Annual SE Tax Savings
$7,775
LLC SE tax: $16,955 vs S-Corp payroll tax: $9,180 = $7,775 saved. S-Corp likely worth the ~$2,000–$3,000 annual accounting cost.
LLC (Single-Member)
SE Tax on all income
$16,955
S-Corporation ✅ Recommended
Payroll tax on salary only
$9,180
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How to Use This LLC vs S-Corp Calculator
- Enter your net annual business income.
- Enter the reasonable salary you would pay yourself as an S-Corp owner.
- Read LLC SE tax, S-Corp payroll tax, and annual tax savings.
- Compare savings against S-Corp formation/accounting costs (~$1,500–$3,000/yr).
Frequently Asked Questions
- As an LLC, all net income is subject to 15.3% SE tax. As an S-Corp, only the owner's salary is subject to payroll tax. Distributions above salary avoid the 12.4% Social Security portion.
- Generally $40,000+ in net self-employment income, where SE tax savings exceed the extra accounting and filing costs (~$1,500–$3,000/yr).
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