S-Corp vs LLC Calculator

Compare potential tax savings between business structures

Modify the values and click the Calculate button to use

Net profit before owner compensation

Recommended: $60,000 - $90,000 (40-60%)

What is a "Reasonable Salary"?

The IRS requires S-Corp owners to pay themselves a market-rate salary (typically 40-60% of income). Remaining profit can be distributed without self-employment tax, creating potential savings.

Free S-Corp vs LLC Calculator - Compare Tax Savings | The Tax Ally