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LLC vs S-Corp Tax Calculator
Compare payroll tax differences between an LLC (sole prop) and an S-corp salary split. See the rough range before you commit.
This focuses on payroll tax only. The real decision also involves income tax, QBI, and state-level costs.
Tip: if you leave salary blank, we’ll use 60% of profit as a starting estimate. Then validate with the salary tool.
Payroll + extra tax prep can materially change the net benefit.
Your financial life goes beyond this result.
X1 brings your accounts, businesses, properties, and professional work into one household picture. Start with what matters to you.
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Assumptions and limits
- Compares self-employment tax (LLC/sole prop) to payroll taxes on an S-corp salary plus distributions.
- Uses current payroll tax constants, including the Social Security wage base and Additional Medicare thresholds.
- Does not model income tax, QBI, state tax, or other credits.
- Admin costs (payroll services, extra filings, state fees) can offset savings and should be included.
Questions to ask your CPA
- What salary range would you defend for my role?
- How do payroll savings compare to admin and state costs?
- Does an S-corp election affect my QBI deduction?
- What is the timeline for making the election official?
Know the tradeoff before you file
Use the estimate to decide whether a full review is worth it.
LLC vs S-corp is a payroll tax tradeoff
The payroll tax gap is the starting point. The real decision includes admin costs, QBI, and state rules.
Before your next conversation
- Estimate profit and a defensible salary.
- Add admin costs (payroll + tax prep + state fees).
- Check the S-corp election deadline.
- Review QBI impact and state-specific rules.
Questions to bring to your professional
- What does the break-even point look like in dollars?
- How do state fees change the answer?
- What is the best effective date for the election?