Business Tax Calculator
What’s the best type of entity for your business?
Choosing the best type of entity for a new or existing business involves both tax and non-tax considerations. Because a major factor in the decision is the federal tax treatment of the entity, we created this tool to help you compare how taxes will be calculated as a limited liability company (LLC), a corporation electing Subchapter S tax treatment (S-Corp), and a corporation not making Subchapter S elections (C-Corp). By using the calculator, you can learn how your choice of business entity will affect:
- Federal income tax for the founders and the company
- California state franchise tax and fees
- Self-employment tax (for LLCs and S-Corps)
- Pass-through deductions for pass-through entities
- Medicaid and payroll taxes (for C-Corps)
Of course, this calculator cannot provide a comprehensive analysis of all the federal tax factors that may weigh into a choice of entity decision.* However, the calculator is a helpful tool that can help you focus on your choice of entity decision by examining some of the key factors that will impact the federal tax treatment of your selected entity including your revenue, overhead, equity stake, salary and profits/dividends, among other factors.