LLC vs. S-Corp Tax Savings Calculator (2026 Edition)
Compare your 15.3% self-employment tax burden as a Single-Member LLC against electing S-Corporation tax status (IRS Form 2553).
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IRS rule of thumb: typically 35%–50% of net profit based on officer duties.
Estimated Annual SE Tax Difference (After Overhead)
Execute Your S-Corp Tax Strategy in 3 Simple Steps
Form Your LLC + S-Corp Election in 10 Minutes
Includes 1 Full Year of Free Registered Agent Service, Privacy by Default (keeps your home address off public state records), and IRS Form 2553 S-Corp filing support.
Provider: Northwest Registered Agent
Run Automated IRS-Compliant S-Corp Owner Payroll
The IRS requires all S-Corp owners to pay themselves a W-2 reasonable salary. Patriot automates your W-2 tax withholdings, W-2 year-end filings, and direct deposit in 2 clicks.
Provider: Patriot Software Payroll
Track Write-Offs, Mileage & Quarterly Taxes Automatically
Separate your business and personal expenses cleanly so you never fail an IRS audit and maximize your 20% QBI (Section 199A) pass-through tax deduction.
Provider: FreshBooks Accounting
How the S-Corp Tax Election Works Under Official IRS Rules
Per IRS Schedule SE Guidelines, a default Single-Member LLC or Sole Proprietorship is subject to the 15.3% Federal Self-Employment Tax (12.4% Social Security up to the $184,500 2026 SSA wage base limit + 2.9% Medicare) on 92.35% of net business earnings.
When an eligible domestic LLC files IRS Form 2553 (Election by a Small Business Corporation), business earnings are divided into two components: (1) Reasonable W-2 Officer Compensation (per IRS S-Corp Compensation Rules, which is subject to standard FICA payroll taxes), and (2) Non-Wage Shareholder Distributions (which are not subject to the 15.3% self-employment tax).