C-Corp vs. S-Corp Tax Calculator
C-Corp or S-Corp? This calculator compares both structures side-by-side — including double taxation, QBI deduction eligibility, and the optimal salary/distribution split.
C-Corp vs. S-Corp Tax Calculator
Compare the total tax impact of C-Corp double taxation vs. S-Corp pass through taxation
S-Corp saves $5,165.50 vs. C-Corp at this income level. Pass through avoids the 21% corporate tax layer.
Disclaimer: S-Corp is pass through: all income taxed once at personal rates. C-Corp faces double taxation: 21% corporate tax + personal tax on salary and distributed dividends. Distributions are assumed limited to after-tax corporate profits, and dividend tax assumes qualified dividends at 15%. Retained earnings that stay inside the C-Corp are not taxed at the personal level until actually distributed. Does not include state taxes or the QBI deduction. Consult a tax advisor for entity selection.
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Frequently Asked Questions
What is the difference between C-Corp and S-Corp taxation?+
C-Corp: 21% flat corporate tax on profits, then personal tax on dividends (double taxation). S-Corp: pass-through — profits taxed once on your personal return. S-Corp saves most solopreneurs money. C-Corp can work if you retain most profits in the business.
When does a C-Corp make more sense than an S-Corp?+
C-Corp benefits: (1) You reinvest most profits (21% rate vs up to 37% personal). (2) You want to offer stock options. (3) You're seeking venture capital. (4) You have employees and want fringe benefit deductions. Most solo businesses are better off with S-Corp.
What is the double taxation problem with C-Corps?+
C-Corp profits are taxed at 21% corporate rate. When distributed as dividends, they're taxed again at 15-20% personal rate. Combined rate: ~33-37%. S-Corp profits are taxed once at personal rates (10-37%) with no corporate layer. That's why S-Corp wins for most small businesses.
What is the difference between C-Corp and S-Corp taxation?
C-Corp: 21% flat corporate tax on profits, then personal tax on dividends (double taxation). S-Corp: pass-through — profits taxed once on your personal return. S-Corp saves most solopreneurs money. C-Corp can work if you retain most profits in the business.
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