Calculator

Entity Selection Calculator

This calculator uses the 2019 tax tables published by the IRS for Single and Married Filing Jointly (MFJ) taxpayers.
Taxpayer/Spouse Non-Business Activity W-2 Wages
Taxpayer W2 wages from business activity
Taxable Retirement Distributions
Enter the sum of qualified real estate investment trust (REIT) dividends (including REIT dividends earned through a regulated investment company (RIC)) and qualified publicly traded partnership income.
Enter the sum of qualified real estate investment trust (REIT) dividends (including REIT dividends earned through a regulated investment company (RIC)) and qualified publicly traded partnership income.
Percentage Ownershipt
Business activity income before wages
Non-owner W2 wages from business activity
Guaranteed payment are those made by a partnership to a partnet that are determined without regard to the partnership's income. See here for additinal questions.
Many owners of sole proprietorships, partnerships, S corporations and some trust and estates may be eligible for a qualified business income (QBI) deduction - also called Section 199A - for tax years beginning after December 31, 2017. For more questions, go to https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section199a-qualified-business-income-deduction-faqs
Qualifying property means: 1. tangible property 2. depreciable property 3. property that is available for use in business at the close of the tax year 4. property used in production of the QBI at any time during the year 5. propery for which the depreciable period has not ended before the close of the tax year If a taxpayer has taxable income above the higher taxable income threshold and owns a business that is not a specified service trade or business, the QBI deductible amount for the business is subject to a limitation based on W-2 wages and/or capital. See for IRS Publicaction 535 for additional questions.
Choose Yes if your trade or business involves the performance of services in the fields of: healt, law, accounting, actuarial science, performing arts, consulting, athleticsc, financial services, investing and investment management, trading, dealing in certain assets, or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners.
Enter combined amounts for Self Employed SEP, SIMPLE and relevant qualified plans.
Enter the itemized deduction amount that applies. The standard deduction is $12,200 for single taxpayers and $24,400 for a married couple filing jointly.
Enter amounts for health insurance deductions related to self-employment.
Enter amounts for adjustments other than the one half of self-employment tax per guidance from IRS publication 535.

* This calculator does not take into account California income taxes for founders. It is only meant to give you a general picture of the taxation for different types of entities.

Line Sole Proprietor/LLC Partnership* S-Corp C-Corp
1 Wages from Forms W-2
2 Interest Income
3 Dividend Income
4 Taxable IRA and Pensions and Annuities
5 Business Income or (loss) (Schedule C) NA NA NA
6 Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, Etc. NA NA
7 Other Income (Schedule 1 Line 9) NA
8 Total Income
9 Deductible Part of Self-Employment Tax NA NA
10 Adjustments (Schedule 1 Line 22) - NA
11 Adjusted Gross Income
12 Standard Deduction or Itemized
13 Qualified Business Income Deduction -
14 Add lines 9 and 10
15 Taxable Income
16 Tax****
17 Other Taxes, Including Self-Employment Tax
18 Total Tax
19 Social Security & Medicare Paid on Wages
20 Corporation Taxes**
21 Total Tax***
Line Sole Proprietor/LLC Partnership* S-Corp C-Corp
1 Net income from business activity for QBI deduction
2 Adjustments for 1/2 SE tax, SE health insurance, SE pension 0 0
3 Adjusted net income from business activity for QBI deduction 0
Taxable income before QBI Deduction -
Is the business a Sec 162 qualifying activity for QBI Deduction? No
Does Service Business Limitation Apply? No
4 Qualified business income from the trade or business NA
5 Allocable share of W2 wages from the trade or business
6 Allocable share of the UBIA
7 Net income from business activity for QBI deduction
8 Threshold. Enter $157,500 ($315,000 if MFJ)
9 Subtract line 8 from 7
10 Phase-in range. Enter $50,000 ($100,000 if MFJ)
11 Divide line 9 by 10
12 Applicable percentage. Subtract 11 from 100%
13 Applicable percentage of QBI. Multiply line 4 by line 12 NA NA
14 Applicable percentage of W2 wages. Multiply line 5 by line 12 NA NA
15 Applicable percentage of UBIA. Multiply line 6 by line 12 NA NA
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