S 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.
| S Corporation | Sole proprietor / single-member LLC | |
|---|---|---|
| Description | Pass-through: FICA only on the "reasonable salary", distributions FICA-exempt. QBI 20%. | Federal income tax + self-employment tax 15.3%, with 20% QBI deduction. |
Official sources
- Internal Revenue Service (IRS) — Corporate & personal income tax