Self-Employment Tax Estimator

Estimate self-employment tax impact with side-by-side scenarios for sole proprietorship, default LLC treatment, and S-corp salary setup assumptions.

When to use this tool

Freelancers deciding when to move from sole prop taxation to an S-corp setup.
Small agency owners modeling tax impact before changing entity/payroll structure.
Consultants comparing total tax estimates across business structures before year-end planning.

How it works

Enter projected annual net business income and an estimated state/local tax rate.
Set optional owner salary assumptions for S-corp comparison.
Review side-by-side estimated tax totals for sole prop, default LLC treatment, and S-corp scenario.
Use the delta table to plan with your CPA and validate compliance costs before changing entities.

Privacy: This tool runs entirely in your browser. Your input is not sent to our servers.

Assumptions

Annual net business income (USD)Use estimated profit before owner taxes.Effective income tax rate (%)Combined federal + state estimate for planning.S-corp owner salary (USD)Reasonable salary assumption for S-corp scenario.S-corp payroll/admin cost (USD/year)Payroll service, filings, compliance overhead.

Educational estimate only. Tax law varies by state and personal situation; confirm with a qualified CPA.

Structure	Income tax	SE / payroll tax	Total est. tax	After-tax income
Sole prop	$31,030	$21,420	$52,450	$87,550
LLC (default tax treatment)	$31,030	$21,420	$52,450	$87,550
S-corp scenario	$33,600	$10,710	$46,510	$93,490

S-corp vs sole prop (tax delta)

-$5,940

S-corp vs LLC default (tax delta)

-$5,940

See the full walkthrough in LLC vs. S-corp vs. sole prop (real math).

For implementation context, browse case studies and explore custom AI applications.

Frequently asked questions

Is this legal or tax advice?

No. This is an educational planning estimator. Always confirm assumptions and filing strategy with a qualified CPA or tax attorney.

Why do LLC and sole prop often show similar results?

A single-member LLC is usually taxed like a sole proprietorship by default unless you elect a different tax treatment, so baseline tax outcomes can be similar.

Does S-corp always save tax?

Not always. Savings depend on reasonable salary level, payroll/admin costs, state rules, and total profit. The estimator helps you compare tradeoffs before deciding.