LLC / Sole Prop
Disregarded entity
CurrentFederal income tax$26,055
SE / payroll tax$21,194
State income tax$13,950
Total tax
$61,199
Net after-tax income$88,801
Effective federal rate17.4%
Free Planning Tool
LLC, S-corp, or C-corp — which saves you more?
Enter your net business profit to see a side-by-side tax comparison across all three entity structures. Find the crossover point where an S-corp election starts paying off — and how much you could save.
Entity structure analyzer
Find your optimal business entity structure.
Compare LLC, S-corp, and C-corp tax treatment side by side. See exactly when an S-corp election starts saving you money and whether a C-corp structure is worth considering. Illustrative 2026 estimates — not tax advice.
Your situation
$50K$150,000$2M
S-Corp
Comp: $60,000
Federal income tax$28,598
SE / payroll tax$9,180
State income tax$13,950
Total tax
$51,728
Net after-tax income$98,272
Effective federal rate19.1%
C-Corp
21% flat + dividend tax
Federal income tax$31,500
Dividend tax$15,786
State income tax$13,260
Total tax
$60,546
Net after-tax income$89,454
Effective federal rate21.0%
S-Corp break-even
S-corp election typically makes sense above $50,000 net profit. At your income, the estimated annual savings are $9,471 vs. LLC treatment.
C-Corp note
C-corps can make sense for retained earnings strategies, QSBS eligibility, or investor fundraising — but double taxation applies on distributions. This estimate assumes full distribution of after-tax profits.
Planning notes
- LLC and S-corp pass-through income may qualify for the 20% QBI deduction (§199A) — not modeled here.
Illustrative estimates only. Using 2026 federal tax brackets and flat state rate approximations. Does not constitute tax or legal advice. Payroll administration costs not included in S-corp estimates. QBI (§199A) deduction not modeled. Consult a CPA for personalized analysis.
Work with Matt
Ready to build a plan?
Matt Reese, CPA works with business owners to analyze entity structure, set reasonable S-corp compensation, and build the tax plan around the right entity decision.
Tax services provided through Reese CPA. This page is educational and does not constitute tax advice.