LLC vs S-Corp Tax Calculator 2026

What does this LLC vs S-corp tax calculator answer?

An eligible LLC can elect S-corporation tax treatment. They are not competing legal forms. This LLC vs S-corp tax calculator compares two federal payroll-tax paths for your owner-operated business. The first reports all net profit as Schedule C self-employment earnings. The second pays your reasonable W-2 salary from an S corporation and treats remaining profit as distributions. It does not compare employee and independent-contractor classifications.

For Schedule C, the calculator multiplies your net profit by 92.35%. It then applies 12.4% Social Security tax up to your remaining annual wage base and 2.9% Medicare tax. The wage base limits annual earnings subject to Social Security tax. It also includes the 0.9% Additional Medicare Tax when combined entered wages and adjusted self-employment earnings exceed your filing-status threshold. The IRS self-employment tax guide explains the combined rate and Schedule SE adjustment. The Social Security Administration sets the 2026 Social Security wage base at $184,500.

For the S-corp path, the calculator applies employee and employer Social Security and Medicare taxes to your salary. Distributions equal net profit minus salary and receive no payroll tax in this model. Other W-2 wages can reduce your employee Social Security base. However, your S corporation still applies its own employer wage base. Additional Medicare Tax is employee-only.

Who is this LLC vs S-corp tax calculator for?

Use it when you operate an owner-worked business and need a 2026 Schedule C to S-corp payroll-tax comparison before anyone talks about Form 2553. Typical cases:

• You report net profit on Schedule C today, including a single-member LLC taxed as disregarded, and want to project what changes if you elect S-corporation treatment.
• You already have a supportable salary range and a realistic compliance-cost estimate, and you want the break-even profit with those inputs held fixed.
• You are preparing someone else's numbers and need a transparent worksheet that shows Schedule C self-employment tax next to S-corp FICA, distributions, and break-even.

This is not practice-management software. It does not set compensation, file the election, or replace a complete return. If you still need the “should I elect?” decision, read Schedule C vs S corp. Keep this page for the math.

Is this an LLC vs S-corp tax calculator?

Yes. This page is the Numerandi LLC vs S-corp tax calculator for 2026.

Enter expected net profit, a supportable owner salary, added S-corp costs, filing status, and other W-2 wages. The first-paint result says who pays less in 2026 payroll tax after those costs.

It is not the should-I-elect article. That decision lives on Schedule C vs S corp. It is not the salary-evidence article. What salary your S corp should pay you lives on S-corp reasonable salary. The articles own those jobs. This tool owns the payroll-tax comparison.

What is Schedule C vs an S-corp?

You are comparing two federal payroll-tax paths for the same owner-operated profit—not two unrelated legal forms. Schedule C (including a typical single-member LLC taxed as disregarded) puts self-employment tax on your net profit in this tool. An S-corp election pays FICA on the reasonable W-2 salary you enter and models what is left as distributions without self-employment tax here.

That split is what drives the savings number above. Income tax, QBI, state entity fees, basis limits, and election paperwork stay outside this comparison. If you only need the Schedule C side, use the self-employment tax calculator. For the broader entity decision, see Schedule C vs S corp—this page stays focused on payroll math with your salary and compliance inputs.

Is this a Schedule C to S-corp tax projection?

Yes for Social Security and Medicare. Enter expected net profit, a supportable owner salary, added S-corp costs, filing status, and other W-2 wages. The result projects 2026 Schedule C self-employment tax, S-corp FICA on that salary, modeled distributions, net savings after compliance cost, and the fixed-salary break-even profit.

It is not a complete income-tax projection. Federal and state income tax, QBI, retirement contributions, health insurance, basis, and late-election relief stay outside this model. A full return can reverse a payroll-tax savings number. Use the 2026 QBI deduction calculator for the income-tax layer this comparison leaves out.

How does an LLC versus S corp tax comparison work?

This is the LLC versus S corp tax comparison on this page. Schedule C multiplies net profit by 92.35%, then applies Social Security up to the remaining 2026 wage base and Medicare on the full adjusted amount, including Additional Medicare Tax when thresholds apply. The S-corp path applies combined employee and employer FICA to your entered reasonable salary only; distributions equal profit minus salary with no payroll tax in this model. Net savings subtract S-corp FICA and your compliance cost from Schedule C SE tax. Break-even solves for the profit where that difference hits zero with salary and other inputs held fixed. The headline names who pays less after those costs. It does not invent a total-tax winner.

What is a reasonable S-corp salary?

You need reasonable W-2 pay before taking non-wage distributions when you work in your S corporation. The IRS looks at your duties, hours, experience, comparable pay, and compensation agreements—not a fixed percentage of profit. See what salary your S corp should pay you for the full factors-and-evidence walkthrough.

The salary you enter drives the S-corp side of this comparison. Payroll taxes apply to that W-2 wage; remaining profit is modeled as distributions and does not face self-employment tax in this tool. That split is why the savings number can change when you move the salary input—but a lower salary only helps on paper if you can support the pay with facts.

The IRS has no universal percentage or safe harbor. Its S-corporation compensation guidance points to your work, duties, experience, time devoted, comparable pay, and compensation agreements. Enter supportable annual pay; do not lower it just to chase savings shown here.

If your salary exceeds entered profit, the calculator caps it at profit so distributions do not go negative. That cap is a display rule, not proof your business has payroll cash or that basis permits a distribution.

How does the worked 2026 example calculate savings?

Assume you have $120,000 of 2026 Schedule C profit, a proposed $70,000 reasonable S-corp salary, $3,000 of added annual compliance cost, single filing status, and no other W-2 wages. The Schedule C path first uses the 2026 92.35% Schedule SE factor. This produces $110,820 of net earnings. The 2026 12.4% Social Security and 2.9% Medicare rates produce $16,955.46 of SE tax. Your salary receives $10,710 of combined employee-and-employer FICA, or Federal Insurance Contributions Act payroll taxes, at those 2026 rates. You have $50,000 left as modeled distributions. Your net payroll-tax savings are $16,955.46 − $10,710 − $3,000 = $3,245.46. That result excludes income tax, state entity tax, and the cash effect of deductible employer payroll tax.

How should you read savings and break-even?

Your net savings equal modeled Schedule C SE tax minus modeled S-corp FICA minus annual compliance cost. Include payroll service, tax-return preparation, bookkeeping, state filings, unemployment accounts, and other added costs. Break-even is the profit where that difference reaches zero. It keeps your salary, wages, filing status, and compliance cost fixed. In practice, reasonable salary often changes with your profit and duties. Treat the result as a scenario boundary, not an election recommendation.

You can generally deduct one-half of self-employment tax under IRC §164(f). Employer payroll tax is generally a business expense. These deductions affect your income tax. However, this focused calculator does not convert them into income-tax savings. It also excludes the qualified business income deduction, state S-corporation taxes, payroll credits, retirement-plan limits, health-insurance treatment, and late-election relief.

What mistakes and edge cases should you check?

• Do not lower your salary only to manufacture savings. You need reasonable-compensation evidence.
• Include your state entity fees, payroll service, tax preparation, and bookkeeping. Omitting them can reverse your federal payroll-tax result.
• Do not treat your distributions as tax-free. Payroll-tax treatment is not income-tax treatment.
• Include your other W-2 wages. Ignoring them can overstate your Schedule C Social Security portion or mishandle employee withholding.
• Check your fixed-salary break-even carefully. It assumes your duties and market compensation never change as profit grows.

When should you use this LLC vs S-corp tax calculator?

Use this LLC vs S-corp tax calculator when you want a 2026 Schedule C to S-corp payroll-tax projection with a supportable salary and real added costs. Use the decision article when you still need to judge whether the extra payroll and return work is worth it. Then audit the Schedule C side with the self-employment tax calculator. Layer income-tax QBI effects with the 2026 QBI deduction calculator. Revisit federal payment timing after a structure change with the quarterly estimated tax calculator.

What should you do next?

Document your duties, hours, experience, and comparable compensation before you model salary. Get realistic state and compliance costs. Then build a complete income-tax comparison that includes QBI, or qualified business income, and employer deductions. Check your entity eligibility, election deadlines, payroll registration, and cash available for regular payroll. Use this calculator to frame questions for an adviser. Do not file an election based on one displayed savings number.