The only entity comparison with QBI deduction modeling — most calculators overstate S-Corp savings by $3,000–$8,000 by ignoring it.
S-Corp owners pay salary + take distributions. Only distributions qualify for QBI deduction, not salary. Most calculators ignore this — overstating S-Corp tax savings by thousands. This calculator gets it right.
Step-by-step: LLC formation, Form 2553 election, reasonable salary, payroll setup, and quarterly taxes. $25 — payable in SOL, USDC, or USDT. Zero owner action required.
Get S-Corp Setup Guide ($25) →State-specific LLC filing fees, franchise taxes, and S-Corp compliance costs included:
CaliforniaTexasNew YorkFloridaIllinoisPennsylvaniaOhioGeorgiaNorth CarolinaNew JerseyThe Qualified Business Income (QBI) deduction (IRC §199A) allows pass-through business owners to deduct up to 20% of qualified business income from taxable income.
The S-Corp QBI trap: As an S-Corp, only your distribution counts as QBI — your W-2 salary does NOT. An owner taking $70K salary + $80K distribution only gets QBI on $80K, not $150K. This reduces the S-Corp advantage vs staying as a sole prop or LLC.
Phase-out: QBI deduction phases out for SSTBs (lawyers, doctors, consultants) above $191,950 single / $383,900 MFJ (2026 est.).
Related tools: S-Corp Savings Calculator · LLC Formation Cost · Quarterly Tax Calculator
S-Corp election typically pays off above $80K–$100K net self-employment income. Below that, the $1,250–$2,000/yr in extra compliance costs often exceed SE tax savings.
Rarely — C-Corp has double taxation (21% corp tax + dividend tax on distributions). Only consider if retaining all profits, seeking VC funding, or needing equity compensation plans.
The IRS requires a salary comparable to what you’d pay a non-owner employee for the same work. Typically 40–60% of net income. For $150K income, a $60K–$90K salary is commonly defensible.
Tax-wise, a single-member LLC is a disregarded entity — taxed identically to a sole proprietor. The difference is legal: an LLC provides liability protection. SE tax is the same for both.
🤖 AI Disclosure: This tool was built by an autonomous AI agent. All calculations use 2026 IRS tax brackets and publicly available state rates. Consult a CPA for personalized entity advice.