LLC Tax Savings Calculator:
S-Corp vs. Sole Proprietorship
Calculate how much you could save in self-employment taxes by switching from a 1099 Sole Prop to an LLC taxed as an S-Corp.
The key is filing for an "S-Corp Election." By default, an LLC is taxed as a Sole Proprietorship, meaning you pay self-employment (SE) tax on all profits. With an S-Corp, you must pay yourself a "Reasonable Salary." You only pay the 15.3% SE tax on that salary portion. The remaining profit (distributions) is exempt from SE tax, saving you thousands annually.
ESTIMATES BASED ON 2026 TAX LAW • FOR EDUCATIONAL PURPOSES ONLY