Business Tax Strategy
LLC vs. S-Corp Estimator
Calculate your estimated Self-Employment (FICA) tax savings by electing S-Corp status in 2026.
Business Revenue
$
S-Corp Salary Strategy
The IRS requires S-Corp owners to pay themselves a "reasonable" W-2 salary before taking tax-free distributions.
$
S-Corps require payroll processing (e.g., Gusto) and a separate 1120-S tax return. Estimate $1,000 - $2,500/year.
Standard LLC SE Tax
$0
15.3% on all profit
S-Corp SE Tax
$0
15.3% only on W-2 salary
Gross SE Tax Savings (LLC Tax) - (S-Corp Tax)
+$0
Less: S-Corp Admin Costs Payroll & 1120-S Prep
-$0
Net Annual Tax Savings
$0
Money kept in your pocket!
2026 Tax Disclaimer: This calculator estimates the Self-Employment (FICA) tax arbitrage. It uses the 15.3% SE rate (12.4% Social Security + 2.9% Medicare) and estimates the 2026 SS wage base limit at $175,000. It applies the 0.9235 SE tax multiplier for LLCs. Note: This tool does not calculate ordinary income tax or the Section 199A Qualified Business Income (QBI) deduction, which can be negatively impacted by S-Corp W-2 wages. Always consult a licensed CPA before making a corporate election.