C Corporation vs Sole proprietor / single-member LLC: tax comparison 2026
Compare the tax burden of the two legal forms with your own numbers, using each calculator below.
| C Corporation | Sole proprietor / single-member LLC | |
|---|---|---|
| Description | Federal corporate tax 21% + dividend taxation (double taxation). | Federal income tax + self-employment tax 15.3%, with 20% QBI deduction. |
Official sources
- Internal Revenue Service (IRS) — Corporate & personal income tax