LLC tax calculator
Enter your LLC's profit and see the full federal tax bill both ways: as a default pass-through LLC, and as an LLC taxed as an S-corporation. The difference is the number people mean when they ask whether an S-corp is worth it.
Your LLC
S-corp election saves
$4,653
Before payroll-filing and accounting costs, typically $1,200–$2,500 a year.
Default LLC (Schedule C)
- Self-employment tax
- $16,955
- Federal income tax
- $11,057
- Total tax
- $28,012
LLC taxed as an S-corp
- Payroll tax on salary
- $9,180
- Distribution (no payroll tax)
- $60,000
- Federal income tax
- $14,179
- Total tax
- $23,359
LLC taxes by state
State income tax changes both the total bill and the point where an S-corp election starts paying for itself.
Why an LLC's tax bill depends on its election, not its formation
An LLC is a legal structure, not a tax structure. By default the IRS ignores it: a single-member LLC is taxed like a sole proprietorship, a multi-member LLC like a partnership. All the profit lands on your personal return and all of it faces the 15.3% self-employment tax.
Elect S-corporation treatment and the arithmetic changes. You put yourself on payroll at a reasonable salary, payroll tax applies only to that salary, and the remaining profit comes out as a distribution free of self-employment tax. Income tax still applies to the whole amount.
The catch is cost and discipline. Payroll runs, quarterly 941s, an 1120-S return, and a salary you can defend if questioned. That overhead is roughly fixed, so the election pays off only once the payroll-tax savings clear it — which is why the crossover usually sits somewhere near six figures of profit.
Frequently asked questions
How much tax does an LLC pay?
A single-member LLC pays no entity-level federal tax by default. Profit flows to your personal return, where it faces 15.3% self-employment tax plus federal income tax at your bracket, reduced by the QBI deduction. States may add income tax or a flat LLC fee.
When is an S-corp election worth it?
Usually once net profit reliably exceeds roughly $80,000–$100,000. Below that, the payroll-tax savings rarely cover the added cost of running payroll, filing Form 1120-S and higher accounting fees, typically $1,200–$2,500 a year.
What is a reasonable salary for an S-corp owner?
What you would pay an unrelated person to do your job, supported by industry pay data, hours worked and your role. Paying an artificially low salary to shift profit into distributions is a common audit trigger and can result in back payroll tax and penalties.
Does an LLC pay quarterly taxes?
The owner does. If you expect to owe $1,000 or more, make estimated payments around April 15, June 15, September 15 and January 15. Under an S-corp election, salary tax is withheld through payroll and only the distribution portion needs estimates.
Does LLC tax differ by state?
Yes. Federal treatment is identical, but state income tax rates, franchise taxes and annual LLC fees vary widely — and they move the S-corp crossover point. Choose your state below for a pre-filled comparison.
Estimates only, using projected 2026 federal figures. Not tax advice.