Compare the tax liabilities and annual costs of operating your business as an LLC, S-Corp (S-Corporation), or C-Corp (C-Corporation). Determine which entity structure minimizes your total tax burden.
Business Financial Information
Business Revenue & Income
Owner/Shareholder Information
S-Corp Specific Information
Business Structure Details
Introduction: why LLC vs S-Corp vs C-Corp Tax Comparison Calculator matters
In the real world, the hard part is rarely finding a formula—it is turning a messy situation into a small set of inputs you can measure, validating that the inputs make sense, and then interpreting the result in a way that leads to a better decision. That is exactly what a calculator like LLC vs S-Corp vs C-Corp Tax Comparison Calculator is for. It compresses a repeatable process into a short, checkable workflow: you enter the facts you know, the calculator applies a consistent set of assumptions, and you receive an estimate you can act on.
People typically reach for a calculator when the stakes are high enough that guessing feels risky, but not high enough to justify a full spreadsheet or specialist consultation. That is why a good on-page explanation is as important as the math: the explanation clarifies what each input represents, which units to use, how the calculation is performed, and where the edges of the model are. Without that context, two users can enter different interpretations of the same input and get results that appear wrong, even though the formula behaved exactly as written.
This article introduces the practical problem this calculator addresses, explains the computation structure, and shows how to sanity-check the output. You will also see a worked example and a comparison table to highlight sensitivity—how much the result changes when one input changes. Finally, it ends with limitations and assumptions, because every model is an approximation.
What problem does this calculator solve?
The underlying question behind LLC vs S-Corp vs C-Corp Tax Comparison Calculator is usually a tradeoff between inputs you control and outcomes you care about. In practice, that might mean cost versus performance, speed versus accuracy, short-term convenience versus long-term risk, or capacity versus demand. The calculator provides a structured way to translate that tradeoff into numbers so you can compare scenarios consistently.
Before you start, define your decision in one sentence. Examples include: “How much do I need?”, “How long will this last?”, “What is the deadline?”, “What’s a safe range for this parameter?”, or “What happens to the output if I change one input?” When you can state the question clearly, you can tell whether the inputs you plan to enter map to the decision you want to make.
How to use this calculator
- Enter the required inputs using the units shown.
- Click the calculate button to update the results panel.
- Review the result for sanity (units and magnitude) and adjust inputs to test scenarios.
If you are comparing scenarios, write down your inputs so you can reproduce the result later.
Inputs: how to pick good values
The calculator’s form collects the variables that drive the result. Many errors come from unit mismatches (hours vs. minutes, kW vs. W, monthly vs. annual) or from entering values outside a realistic range. Use the following checklist as you enter your values:
- Units: confirm the unit shown next to the input and keep your data consistent.
- Ranges: if an input has a minimum or maximum, treat it as the model’s safe operating range.
- Defaults: defaults are example values, not recommendations; replace them with your own.
- Consistency: if two inputs describe related quantities, make sure they don’t contradict each other.
Common inputs for tools like LLC vs S-Corp vs C-Corp Tax Comparison Calculator include:
- Inputs: enter the values that describe your scenario.
If you are unsure about a value, it is better to start with a conservative estimate and then run a second scenario with an aggressive estimate. That gives you a bounded range rather than a single number you might over-trust.
Formulas: how the calculator turns inputs into results
Most calculators follow a simple structure: gather inputs, normalize units, apply a formula or algorithm, and then present the output in a human-friendly way. Even when the domain is complex, the computation often reduces to combining inputs through addition, multiplication by conversion factors, and a small number of conditional rules.
At a high level, you can think of the calculator’s result R as a function of the inputs x 1 … x n :
A very common special case is a “total” that sums contributions from multiple components, sometimes after scaling each component by a factor:
Here, w i represents a conversion factor, weighting, or efficiency term. That is how calculators encode “this part matters more” or “some input is not perfectly efficient.” When you read the result, ask: does the output scale the way you expect if you double one major input? If not, revisit units and assumptions.
How to interpret the result
The results panel is designed to be a clear summary rather than a raw dump of intermediate values. When you get a number, ask three questions: (1) does the unit match what I need to decide? (2) is the magnitude plausible given my inputs? (3) if I tweak a major input, does the output respond in the expected direction? If you can answer “yes” to all three, you can treat the output as a useful estimate.
When relevant, a CSV download option provides a portable record of the scenario you just evaluated. Saving that CSV helps you compare multiple runs, share assumptions with teammates, and document decision-making. It also reduces rework because you can reproduce a scenario later with the same inputs.
Limitations and assumptions
No calculator can capture every real-world detail. This tool aims for a practical balance: enough realism to guide decisions, but not so much complexity that it becomes difficult to use. Keep these common limitations in mind:
- Input interpretation: the model assumes each input means what its label says; if you interpret it differently, results can mislead.
- Unit conversions: convert source data carefully before entering values.
- Linearity: quick estimators often assume proportional relationships; real systems can be nonlinear once constraints appear.
- Rounding: displayed values may be rounded; small differences are normal.
- Missing factors: local rules, edge cases, and uncommon scenarios may not be represented.
If you use the output for compliance, safety, medical, legal, or financial decisions, treat it as a starting point and confirm with authoritative sources. The best use of a calculator is to make your thinking explicit: you can see which assumptions drive the result, change them transparently, and communicate the logic clearly.
What this calculator estimates
This tool provides a side-by-side estimated comparison of total taxes and what the owner receives under three common structures:
- LLC (default / sole prop-style) : federal + state income tax on business income, plus self-employment tax (simplified).
- S-Corp (election) : payroll tax on owner salary (simplified), plus federal + state income tax on salary + remaining profit (distributions).
- C-Corp : 21% federal corporate income tax (simplified) + state tax (as entered), and dividend tax on distributed after-tax profit (simplified).
Inputs: what to enter
- Gross revenue : total sales/receipts before expenses.
- COGS : direct costs to produce goods/services (if applicable).
- Operating expenses : ordinary business expenses (rent, software, marketing, etc.).
- Depreciation expenses : depreciation/amortization you want to model.
- Interest expenses : business interest you want to model.
- Other deductions : additional deductible amounts you want included.
- Federal tax bracket (%) : your marginal/average rate you want to apply to taxable income (this calculator uses a flat percentage).
- State tax rate (%) : state income/corporate rate to apply (flat percentage).
- S-Corp salary : W-2 wages paid to the owner (used to estimate payroll tax and income tax).
- Annual filing fees : extra entity/admin costs you want included in S-Corp totals.
- C-Corp distribution % : percent of after-tax corporate profit paid out as dividends.
- C-Corp retention % : percent retained in the corporation (informational; distribution + retention should equal ~100%).
Outputs: how to read the results
- Business income : revenue minus all entered deductions/expenses.
- Total tax (LLC / S-Corp / C-Corp) : sum of the taxes this tool models for that entity type.
- Owner receives : a simplified “cash to owner” estimate (LLC/S-Corp: business income minus modeled taxes; C-Corp: dividends net of dividend tax).
Sanity checks: if business income is negative, tax estimates may be misleading; if S-Corp salary exceeds business income, the S-Corp scenario may not be realistic; if C-Corp distribution is 0%, owner receives will be 0 even though the corporation may retain value.
FAQ
Why can an S-Corp reduce taxes compared with an LLC?
In many cases, S-Corp distributions are not subject to self-employment tax, while W-2 salary is. This tool reflects that simplification by applying payroll tax to salary and not to the remaining profit.
What is “reasonable salary” for an S-Corp?
It’s a facts-and-circumstances determination (role, duties, market pay, time spent, etc.). This calculator does not validate it; enter a defensible estimate.
Why can a C-Corp show “double taxation”?
C-Corps can pay corporate income tax on profits, and then shareholders can pay dividend tax when profits are distributed. This calculator models both in a simplified way.
Does this include deductions like QBI (199A) for LLC/S-Corp?
No. If QBI applies to you, the LLC/S-Corp total tax could be overstated here.
What this calculator includes (and excludes)
- LLC (default/pass-through): estimates federal income tax, state income tax, and self-employment tax (modeled as 15.3% of business income).
- S-Corp election: models payroll tax on owner salary (15.3%), plus federal/state income tax on salary + pass-through profit, plus an annual filing/administration cost.
- C-Corp: models 21% corporate tax on business income, state tax on business income, and a 15% dividend tax on the portion of after-tax profit distributed.
Important: This is an educational estimator, not tax advice. Real outcomes depend on QBI/199A, wage base limits, additional Medicare tax, state/local rules, deductions/phaseouts, multi-owner allocations, and how compensation/distributions are structured.
Your Tax Liability Comparison
Summary Comparison
| Entity Type | Business Income | Taxable Income | Federal Tax | State Tax | Self-Employment Tax | Total Tax Cost | Owner Receives |
|---|---|---|---|---|---|---|---|
| LLC (Taxed as Partnership) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| S-Corp | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| C-Corp | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |