Free business entity tax calculator from Fynvorax. Compare LLC, S-Corp, and C-Corp tax outcomes, self-employment tax, and reasonable salary effects.
Compare pass-through vs C-Corp taxation on the same profit. $200k profit taxed as salary + S-Corp distribution vs C-Corp double taxation shows different take-home.
The IRS mandates that S-Corp active owners must be paid a salary commensurate with typical industry standards for their roles. Setting this salary artificially low solely to escape payroll taxes will trigger audits.
Both pass-through; S-Corp may save payroll tax on distributions but has salary requirement and ownership limits.
Reinvesting profits, QSBS eligibility, venture investors preferring C-Corps, or foreign owners blocked from S-Corp.
Comparable W-2 wages for the work you perform — document role, hours, and industry pay surveys.