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Answer 6 questions. Get a personalized recommendation with real tax math for your state. See exactly how much you'd save with each structure.
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Most “LLC vs S-Corp” articles give you the same vague advice. We calculate your actual tax burden under each entity type based on your income and state. You see real dollar amounts, not hand-waving.
An LLC in Wyoming costs $100 to file. In California, it's $70 plus an $800/year franchise tax. In New York, you need to pay for newspaper publication. We show you exactly what your state charges.
Find out if an S-Corp election could save you thousands in self-employment tax. We calculate the optimal salary/distribution split and show you the exact savings.
Unlike formation service quizzes that always recommend their own product, we compare multiple services and let you choose the best fit for your situation.
For most small businesses earning under $80K/year, a single-member LLC offers the best balance of liability protection and simplicity. Once you earn above $80K, an S-Corp election can save thousands in self-employment tax by splitting income into salary and distributions.
An LLC is a legal structure that provides liability protection with pass-through taxation. An S-Corp is a tax election (not a legal structure) that lets you split income into salary and distributions — you only pay self-employment tax (15.3%) on the salary portion. An LLC can elect S-Corp taxation without changing its legal structure.
LLC filing fees vary by state, ranging from $40 in Kentucky to $500 in Massachusetts. Most states charge between $50-$200. Some states also have annual fees — California charges an $800/year franchise tax, while states like Wyoming have no annual fee.
Consider electing S-Corp taxation when your net business income consistently exceeds $80,000/year. At that point, the self-employment tax savings typically outweigh the additional compliance costs (~$2,000/year for payroll and CPA fees). Our free calculator shows your exact savings.
You don't legally need one, but an LLC protects your personal assets (home, savings, car) from business lawsuits and debts. If you earn over $40K/year freelancing, the filing fee ($50-$200 in most states) is worth the protection.
Self-employment tax is the 15.3% tax (Social Security 12.4% + Medicare 2.9%) that sole proprietors and LLC owners pay on all business profit. The primary way to reduce it is by electing S-Corp taxation, which limits self-employment tax to only your salary portion — distributions are exempt.
Filing fees, tax rates, and entity comparisons for all 50 states.
Not tax or legal advice. BizStructure provides simplified estimates for educational purposes only, based on 2026 IRS tax brackets and publicly available state filing data. Your actual tax situation depends on many factors not captured here (deductions, credits, other income sources, local taxes, etc.). Always consult a qualified CPA or tax attorney before forming a business entity or making tax elections.
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