Multiply your potential, exponentially.
If you are comparing an LLC (taxed as a sole proprietorship) to an S-corp, the main difference is payroll tax. LLC profit is subject to self-employment tax. An S-corp pays payroll tax on a reasonable salary and can take the rest as distributions (usually no payroll tax). See Schedule SE and the IRS S-corp overview.
Last reviewed: January 23, 2026.
Start with payroll tax math, then layer in admin costs, state fees, and QBI. The calculator handles the first step.
This guide is for planning and coordination only. It does not provide tax or legal advice. Confirm eligibility and calculations with a qualified professional.
