S corp tax savings calculator
Enter your profit and pick your state. The calculator compares a plain LLC with an LLC taxed as an S corp, after payroll costs, the Form 1120-S and any state S corp or franchise tax.
$4,232 a year
saved by switching from a single-member LLC to an LLC taxed as an S corp in California, at these numbers.
Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $52,500 of profit, with the same settings. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.
California, 2026: $100,000 profit, single filer
| Item | LLC | LLC as S corp | Change |
|---|---|---|---|
| Statement of Information (Form LLC-12)sos.ca.gov, checked Oct 23, 2026 | $10 | $10 | $0 |
| California LLC annual taxftb.ca.gov, checked Oct 23, 2026 | $800 | $0 | −$800 |
| Self-employment taxirs.gov, 2026 rates | $14,015 | $0 | −$14,015 |
| Federal income taxirs.gov, 2026 rates | $8,103 | $8,593 | +$490 |
| State income taxftb.ca.gov, checked Oct 23, 2026 | $4,481 | $0 | −$4,481 |
| Payroll tax on your salaryirs.gov, 2026 rates | $0 | $6,407 | +$6,407 |
| State disability and paid leaveedd.ca.gov, checked Oct 23, 2026 | $0 | $520 | +$520 |
| Payroll service and tax return (estimate) | $0 | $1,800 | +$1,800 |
| California S corporation tax (1.5%)ftb.ca.gov, checked Oct 23, 2026 | $0 | $823 | +$823 |
| California pass-through entity tax, paid by the company (elected)ftb.ca.gov, checked Oct 23, 2026 | $0 | $5,024 | +$5,024 |
| Yearly cost | $27,409 | $23,177 | −$4,232 |
What these figures count
- State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
- Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
- The 20% qualified business income deduction with its income limits and the professional-service rule.
- Yearly report fees, and a cost you can change for payroll and the business tax return.
Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.
Want an accountant to look at it? It's free
On your numbers the cheapest structure is another one, at a year less than the one you have now. Leave your name and email and a vetted accountant in California can go over it with your real books. You pay nothing for that first talk.
What drives the saving
The saving is the 15.3% Social Security and Medicare tax on the profit you take as a distribution instead of salary, minus the running costs. The salary has to be reasonable for the work: the blank default is 40% of profit, at least $30,000 where profit allows. See also whether an S corp is worth it at each profit level.