Small Business Tax Estimator
Estimate tax liability for your small business based on entity type and income.
Formula
Sole/LLC: SE Tax = Profit x 92.35% x 15.3%. S-Corp: SE Tax on salary only; distributions avoid SE tax. C-Corp: 21% corporate tax + dividend tax. All: Federal tax at bracket rates, QBI deduction up to 20%.
Frequently Asked Questions
Which business entity type pays the least tax?
It depends on income level. At lower incomes, sole proprietorship with QBI deduction can be efficient. At higher incomes ($50k+ profit), S-Corps can save on self-employment tax. C-Corps have a flat 21% rate but face double taxation on distributions.
What is the QBI deduction?
The Qualified Business Income (QBI) deduction allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income. It applies to pass-through entities like sole proprietorships, LLCs, and S-Corps.
You may also need
$
LLC vs S-Corp Tax Comparison Calculator
Compare the tax implications of operating as an LLC vs S-Corporation to find the optimal structure for your business income level.
Finance$
1099 Contractor Tax Deductions Calculator
Calculate common tax deductions available to 1099 independent contractors including home office, mileage, equipment, and more.
Finance$
Gig Worker Tax Calculator
Estimate your quarterly estimated tax payments as a gig worker including self-employment tax, federal income tax, and state tax.
Finance