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LLC vs S-Corp vs Sole Proprietor Tax Comparison (2025)
Last verified: May 2025
Compare the tax burden of operating as an LLC/sole proprietor vs. an S-Corporation. Find out if electing S-Corp status saves you money.
Must be "reasonable compensation" per IRS
LLC vs S-Corp Comparison
$5,775
Annual Net Savings with S-Corp
$16,955
LLC SE Tax
$9,180
S-Corp Payroll Tax
$7,775
Gross SE Tax Savings
$2,000/yr
Est. S-Corp Admin Cost
Electing S-Corp status saves you $5,775 per year after admin costs.
Analysis & insights
Your llc total tax is $16,955, based on the inputs above. Tax outcomes drive the math behind nearly every other financial decision — savings rate, affordability, retirement.
Quick estimate
This calculator uses just a few inputs. Adjust them to see how each variable shifts the answer.
Risk & benchmark gauge
Current band
Low
Llc Total Tax: $16,955
Industry benchmarks
- Llc Total Tax$16,955
- Scorp Total Tax$9,180
- Annual Savings$7,775
- Net Savings$5,775
- Distributions$60,000
Key insights
Pre-tax contributions reduce taxable income
Every dollar to 401(k), HSA, or traditional IRA reduces taxable income at your marginal bracket — typically 12-32% federal.
Sensitivity testing
Adjust each input by ±10% to find the most impactful variable — that's the one to focus your real-world decisions on.
Recommended actions(4)
Test the realistic range of each input
High priorityTry the lowest and highest realistic value for each input. The spread of results is the range you should actually plan for — point estimates lie.
Impact: Reveals which inputs matter most and where uncertainty hides.
Compare against published benchmarks
Medium priorityWhatever you're calculating, there's likely an industry benchmark for it. Google "[topic] average" or "[topic] median" to sanity-check the result.
Save or download a copy
Medium priorityFor calculators that offer it, use "Download report (PDF)" to keep a snapshot. Otherwise screenshot the inputs + result before navigating away.
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This tool is for informational purposes only and does not constitute legal advice. Settlement values vary widely. Consult a licensed attorney for advice specific to your situation.