Best Option
S Corporation
S Corporation Rate
Max Savings
$13,761
Lowest Tax
$28,524
Highest Tax
$42,285
Summary
For $150,000 in LLC income, the S Corporation election produces the lowest tax at $28,524, saving up to $13,761 compared to the most expensive option.
The S Corporation election produces the lowest total tax at $28,524 (19.02% effective rate), saving up to $13,761 compared to the most expensive option.
C-Corp taxation involves double taxation: after paying the owner a reasonable salary (with FICA on both sides), the corporation pays 21% on remaining profits, then shareholders pay 15% on qualified dividends.
S-Corp election requires paying yourself a reasonable salary ($60,000), but distributions above the salary avoid FICA taxes, potentially saving thousands.
Total Tax by Election Type
Election Comparison
3 rows
| Election | Payroll Tax | Income Tax | Total Tax | Effective Rate | Quarterly Est. |
|---|---|---|---|---|---|
| Sole Proprietor | $21,194 | $16,413 | $37,608 | 25.07% | $9,402 |
| S Corporation | $9,222 | $19,302 | $28,524 | 19.02% | $7,132 |
| C Corporation | $9,222 | $33,063 | $42,285 | 28.19% | $4,482 |
Estimate based on federal taxes only. C-Corp scenario includes owner salary with FICA, then distributes remaining after-tax profits as qualified dividends. Does not include state taxes, compliance costs, or SSTB QBI phase-out rules. Not tax advice.