Free S-Corp vs LLC Tax Savings Calculator
S-Corp vs LLC: Which Saves You More?
Enter your business income and see exactly how much you'd save (or not) with an S-Corp election. Real tax numbers, not guesses.
Should you elect S-Corp status for your LLC? The answer depends on your net business income, reasonable salary, and filing status. This free calculator uses real 2026 FICA rates and federal income tax brackets to show you exactly how much you'd save (or not) with an S-Corp election — including the annual costs most calculators ignore.
How to Compare S-Corp vs LLC Taxes
- 1
Enter your net business income
This is your revenue minus business expenses, before any owner compensation or taxes. If you're not sure, use last year's Schedule C line 31.
- 2
Set a reasonable salary
The IRS requires S-Corp shareholders to pay themselves a reasonable salary — typically 30-60% of net income. The calculator validates this range automatically.
- 3
Choose your filing status
Select single, married filing jointly, or head of household. This affects your federal income tax bracket.
- 4
Review the comparison
See a side-by-side breakdown of LLC vs S-Corp total tax burden, including self-employment tax, federal income tax, and S-Corp annual costs.
- 5
Read the verdict
The calculator tells you which structure saves more and by how much, factoring in S-Corp compliance costs ($1,500-$4,000/year).
Why Use Holdings' S-Corp Calculator?
Real 2026 tax numbers
Uses current FICA rates (15.3% on first $176,100) and 2026 federal income tax brackets — not outdated estimates.
Accounts for S-Corp costs
Most calculators only show tax savings. Ours subtracts the ~$2,500/year in payroll, tax prep, and state filing fees that S-Corps require.
Reasonable salary validation
Automatically flags if your salary is outside the 30-60% range the IRS considers reasonable, so you don't get audited.
No signup required
Run unlimited comparisons instantly. Your data stays in your browser — nothing is stored or shared.
Frequently Asked Questions
When does an S-Corp save money over an LLC?
Generally when net business income exceeds $60,000-$80,000 annually. The savings come from splitting income into salary (subject to FICA) and distributions (not subject to FICA). Below ~$60K, S-Corp costs often exceed tax savings.
What is a reasonable salary for an S-Corp?
The IRS requires S-Corp owners who perform services to take a 'reasonable salary.' This typically means 30-60% of net income, depending on your industry, role, and comparable wages. Setting it too low risks IRS reclassification.
What are the annual costs of an S-Corp?
Expect $1,500-$4,000+ per year: payroll processing ($500-$1,200), S-Corp tax return Form 1120-S ($500-$2,000), and state filing fees ($0-$800). California charges a minimum $800 franchise tax.
Can an LLC elect S-Corp status?
Yes. An LLC can elect S-Corp tax treatment by filing IRS Form 2553. You keep the legal protections of an LLC while getting S-Corp tax benefits. This is the most common structure for small businesses.
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