LLC Tax Calculator: Default vs S Corp vs C Corp
An LLC is taxed like a sole proprietor or partnership by default, or as an S corp or C corp if it elects. With $150,000 of profit, filing single, a $70,000 salary and $2,000 of extra costs, federal tax is $37,607.63 by default, $30,225.78 as an S corp and $41,172.09 as a C corp. Free.
Enter the LLC’s profit for the year before paying yourself, the salary you would take under an S corp or C corp election and the yearly cost of running payroll and the extra return. Results update as you type and stay in this browser until you start over.
LLC tax example
A single-member LLC makes $150,000 of profit in 2026. The owner files single and has no other income. Under an election they would take a $70,000 salary and spend $2,000 a year on payroll and the extra return.
| Taxed as | Federal tax | You keep |
|---|---|---|
| Default LLC | $37,607.63 | $112,392.37 |
| S corp election | $30,225.78 | $117,774.22 |
| C corp election | $41,172.09 | $106,827.91 |
By default the owner pays $21,194.33 of self-employment tax and $16,413.30 of income tax. As an S corp, payroll tax falls to $10,752 because the $72,603 distribution carries none. As a C corp, the same profit is taxed twice: $15,246.63 at 21%, then again as dividends.
How each treatment is taxed
- Default LLC: self-employment tax on 92.35% of profit, then income tax on profit − half of that tax − standard deduction − 20% QBI deduction.
- S corp: 15.3% FICA and FUTA on the salary; income tax on salary and distribution, with the QBI deduction on the distribution.
- C corp: the same payroll tax, 21% on the profit left after salary, then 0%, 15% or 20% on the dividends and 3.8% over $200,000 single or $250,000 joint.
Choosing how your LLC is taxed
Start with the default and test an S corp election once the profit is well above a reasonable salary for your work. See the default treatment in detail, with quarterly payments, in the self-employment tax calculator, and the payroll tax side of the election in the S corp tax calculator.
Frequently asked questions
How is an LLC taxed?
By default the LLC itself pays no federal income tax. A single-member LLC is a disregarded entity: its profit goes on the owner’s Schedule C. An LLC with several members files a partnership return, Form 1065, and each member pays tax on their share. An LLC can instead elect to be taxed as a C corp with Form 8832 or as an S corp with Form 2553.
What taxes does an LLC owner pay?
Under the default treatment: self-employment tax of 15.3% on 92.35% of the profit, with Social Security only up to $184,500 in 2026, and income tax on the profit after half of that tax, the standard deduction and the 20% qualified business income deduction.
When does an S corp election pay off?
When the payroll tax saved on the distribution is larger than the extra cost of running payroll and filing Form 1120-S. In the example, $150,000 of profit with a $70,000 salary leaves the owner $5,381.85 more as an S corp than as a default LLC, after $2,000 of extra costs.
Is a C corp election ever better for an LLC?
Mainly when most of the profit stays in the company, because only the 21% corporate tax applies until it is paid out. When the profit is paid out as dividends, the second layer of tax usually makes a C corp cost more than an S corp, as in the example.
What does this calculator leave out?
It shows 2026 federal tax for one owner with no other income, the standard deduction and all profit paid out. State income taxes and LLC fees, credits, retirement contributions, health insurance and the QBI deduction above $201,750 single or $403,500 joint, where extra limits apply, are not included.
Is what I enter stored or sent anywhere?
No. The calculation runs in your browser and the figures are saved only in this browser so you can come back to them. Nothing you enter is sent to SalesBond or anyone else. Click Start over to clear it.
Related tools: self-employment tax calculator, S corp tax calculator, corporate tax calculator. More on sales and running a sales team on the SalesBond blog and the home page.
Official sources
- IRS: Limited liability company (LLC) — default treatment and the elections on Forms 8832 and 2553.
- IRS Rev. Proc. 2025-32 — 2026 brackets, standard deduction, dividend rates and QBI threshold.
- IRS Publication 15 (2026) — Social Security wage base of $184,500, FICA and FUTA rates.
Updated on Nov 7, 2026. This calculator is for information only and is not tax, legal or payroll advice. Results compare 2026 federal tax only; check your LLC’s tax treatment with the IRS or a tax professional.
