Calculator

Business Profile

Percentage of profit you will take as W-2 salary.

Cost of payroll software + CPA tax return.

Your Tax Strategy

LLC Self-Employment Tax: $0
(15.3% on 92.35% of all profit)
S-Corp Payroll Tax: $0
S-Corp Admin Costs: +$0
Total S-Corp Cost: $0
Net Result $0

What this calculator includes

  • LLC SE Tax: Calculates the 15.3% Self-Employment tax applied to 92.35% of net earnings for a standard single-member LLC.
  • S-Corp Payroll Tax: Calculates the 15.3% FICA tax (employer + employee portions combined) strictly on your inputted W-2 salary.
  • Admin Costs: Factors in the extra overhead required to run an S-Corp legally.

What this calculator does not include

  • Income Taxes: Federal and state income brackets are highly individualized. Both structures are pass-through entities, so income tax is assumed roughly equal for comparison purposes.
  • QBI Deduction: The Qualified Business Income deduction (Section 199A) is highly complex and phases out at higher incomes.
  • State Franchise Taxes: S-Corps often pay higher state-level franchise taxes (e.g., California's 1.5% net income tax for S-Corps).

How to use the result

If the Net Result shows a savings (in green), your business generates enough profit to justify the transition to an S-Corporation. If the result is a loss (in red), the administrative burden of running payroll and hiring a CPA will cost you more than you save in taxes, meaning you should stay as a standard LLC for now.

Disclaimer

This tool provides educational estimates of FICA/SE tax differences. It does not replace the advice of a licensed CPA or tax attorney. Your total tax liability depends on your specific state, tax brackets, and available deductions.