Small Business Tax Estimator: Minimize Your Tax Bill

Small business owners often pay more tax than necessary because they have not optimized their business structure. The difference between operating as a sole proprietorship, LLC, or S-Corp can mean saving 5,000 to 20,000 dollars or more per year in self-employment taxes alone. Our LLC vs S-Corp calculator helps you compare structures side by side.

An S-Corp election allows business owners to pay themselves a reasonable salary and take remaining profits as distributions, which are not subject to the 15.3 percent self-employment tax. The calculator shows you the optimal salary-to-distribution ratio based on your income level and factors in the additional costs of running payroll.

Beyond entity structure, maximizing deductions for business expenses, retirement contributions, and the 20 percent qualified business income deduction can dramatically reduce your effective tax rate. Use our payroll tax calculator for employer-side costs and our tax bracket calculator to plan your total tax strategy.