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S-Corp vs LLC Calculator
Estimate the potential employment-tax difference of an S-Corp election using 2026 federal payroll-tax rules.
Your business
Start with the profit your business keeps.
Use annual net profit after ordinary business expenses but before paying yourself a W-2 salary.
Reasonable salary review
Reasonable compensation requires an individual review.
There is no fixed percentage of business profit that determines reasonable salary. Your actual duties, hours worked, experience, location, industry and comparable market compensation should be considered.
Not sure what salary to use?
Leave your email and HelloTax can help research a reasonable compensation range for your situation.
Added costs are editable. Consider payroll service, separate S-Corp tax preparation, bookkeeping/compliance and state-level entity taxes or fees.
Estimated 2026 result
Enter your numbers and calculate.
$0estimated annual benefit
Default LLC tax treatment
Self-employment taxes
SE tax base (92.35%)$0
Social Security$0
Medicare$0
Additional Medicare$0
Estimated employment tax$0
S-Corp election
Salary plus distributions
Reasonable salary$0
Estimated distributions$0
Social Security$0
Medicare$0
Additional Medicare$0
Estimated payroll tax$0
How the estimate gets there
Gross employment-tax difference$0
Estimated added S-Corp costs$0
Estimated annual benefit$0
Important planning note
This calculator compares federal Social Security and Medicare employment taxes only. It does not calculate federal income tax, QBI, retirement-plan effects, unemployment taxes, workers’ compensation, every state/local tax, or the income-tax effect of the deductible employer-equivalent portion of SE tax. An S-Corp owner who performs services generally must receive reasonable compensation before non-wage distributions.
This calculator compares federal Social Security and Medicare employment taxes only. It does not calculate federal income tax, QBI, retirement-plan effects, unemployment taxes, workers’ compensation, every state/local tax, or the income-tax effect of the deductible employer-equivalent portion of SE tax. An S-Corp owner who performs services generally must receive reasonable compensation before non-wage distributions.
Estimate only. Results are for educational planning and are not tax, legal, or financial advice. Actual tax treatment depends on your full facts and current law.
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