Free Tax Tool
Seven questions, then a side-by-side federal tax comparison of sole prop / LLC, S-Corp, and C-Corp for your numbers — QBI, payroll tax, and C-Corp double taxation included. You can edit every assumption on the results screen. Want the full reasoning? Read our guide to how your business should be taxed.
What's your estimated annual share of net business profit before your owner salary?
Enter only your share of the business profit, not the company's total profit. If there are multiple owners, use the portion allocable to you. This should still be before paying your own W-2 salary.
What's the minimum reasonable salary you could pay yourself?
In an S-Corp you must pay yourself a W-2 salary for services you perform. The IRS requires it to be “reasonable” – what you'd pay a third party to do your role. Enter the lowest defensible number based on your industry, role, and time commitment. This is the most important variable in the S-Corp calculation.
What's your filing status?
This affects your tax brackets, standard deduction, and the QBI phaseout thresholds.
How much total other taxable income do you expect this year, including wages from other jobs?
Include everything else that affects your taxable income and bracket context – such as W-2 wages, spouse wages, investment income, rental income, and other business income.
Of that amount, how much is earned income already subject to payroll tax, such as W-2 wages?
This is a subset of the prior question, not an additional amount. Use it for wages or other earned income that already uses part of the Social Security wage base.
Who owns the business?
Ownership structure determines which entity types are available to you.
Are you planning to raise outside investment capital?
Institutional investors typically require a specific entity structure.
Tell us a bit about your situation and a Fraim CPA will review it with you. No obligation.
We have your details and your entity scenario.