Free Agent FinanceTools · Interactive
LLC vs S-Corp Tax Savings Estimator
See a rough estimate of how much self-employment tax an S-Corp election could save, based on your profit and a chosen salary.
"Reasonable salary" must reflect fair market pay for your role — see our LLC vs S-Corp guide. This estimate doesn't include added payroll and tax prep costs, which typically run $800-$2,500/year.
How this estimate works
As a default LLC or sole proprietor, self-employment tax (15.3%, applied to 92.35% of net profit) applies to your entire profit. Under an S-Corp election, that same 15.3%-equivalent payroll tax applies only to the salary portion — the remaining profit is paid as a distribution, which isn't subject to self-employment tax. This calculator compares those two totals directly. It does not account for the added cost of payroll administration and a separate business tax return, which should be subtracted from the estimated savings shown here.