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LLC vs S-Corp Tax Calculator

Should your LLC elect S-Corp status? Enter your numbers and see the exact tax difference — including the hidden costs most calculators ignore.

Annual Net Business Profit

After business expenses, before taxes

Filing Status

Other Household Income

Spouse income, investments, etc.

How this works: As a default LLC, all profit is subject to 15.3% self-employment tax. As an S-Corp, you pay yourself a "reasonable salary" (subject to payroll taxes) and take the rest as distributions (no SE tax). But S-Corp status adds payroll processing costs and complexity. This calculator finds your break-even.

Side-by-Side Comparison

Full Breakdown

Every line item, both scenarios. This is what we'd actually model for you in a consultation.

🔴 LLC (Default Taxation)

🟢 LLC as S-Corp

Before You File Form 2553 — Read This

S-Corp election requires running actual payroll — you can't just take distributions. The IRS will reclassify them and penalize you.
"Reasonable compensation" is judgment-based. Too low = audit risk. Too high = no savings. We help you document and justify the number.
WA S-Corps still owe the B&O tax on gross revenue — S-Corp election doesn't change state-level taxes.
Once you elect S-Corp, switching back is painful. Make sure it's the right call before filing.
Savings shown above are annual — they compound every year you stay an S-Corp.

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Estimates only. Uses 2026 projected federal tax brackets, 15.3% SE tax (net of deduction), 7.65% employer + 7.65% employee payroll tax, and standard deduction. Does not account for QBI deduction phase-ins/outs, additional Medicare tax, state-specific credits, or entity-level taxes. Actual savings depend on reasonable compensation justification, profit consistency, and benefit elections. Talk to a CPA before filing.

Ready to Make the Switch?

Steadfast Accounting handles S-Corp election, reasonable compensation analysis, payroll setup, and ongoing tax planning for Tri-Cities business owners. We'll tell you straight if it's worth it or not.

Book a Free Consultation →