California LLC vs Sole Proprietorship Tax Calculator
Quickly estimate your potential tax savings when choosing an LLC (with S-Corp election) versus staying a Sole Proprietor in California. Updated for 2025 tax rules.
Quickly estimate your potential tax savings when choosing an LLC (with S-Corp election) versus staying a Sole Proprietor in California. Updated for 2025 tax rules.
Why Use This Calculator?
Compare your estimated tax burden side by side
Understand how California’s $800 LLC annual tax impacts your savings
See how S-Corp election can reduce self-employment taxes
LLC vs Sole Proprietorship Calculator
Compare the costs and benefits of forming an LLC versus operating as a Sole Proprietorship.
California has a $70 formation fee and an $800 annual LLC tax. It also has state income tax (up to 13.3%) and additional LLC fees based on gross receipts.
Net profit: $80,000 (80.0% margin)
LLC taxed as S-Corporation
Recommended at your income level
Consider LLC with S-Corp Election
At your income level, forming an LLC with S-Corp election could provide significant tax savings. The self-employment tax savings typically outweigh the additional costs and complexity.
California has high LLC fees and taxes. Consider the $800 annual tax and gross receipts fees.
Enable S-Corp above to preview savings.
Cost Comparison
Sole Proprietorship saves you $814 per year (2.5%)
Tax Comparison
Tax Breakdown
Sole Proprietorship
Total: $32588
- Federal Income Tax:$12908
- Self-Employment Tax:$12240
- State Income Tax:$7440
- State Fees:$0
LLC
Total: $33402
- Federal Income Tax:$12908
- Self-Employment Tax:$12240
- State Income Tax:$7440
- State Fees:$800
- Formation Fee (amortized):$14
LLC vs Sole Proprietorship Calculator
Compare the costs and benefits of forming an LLC versus operating as a Sole Proprietorship.
Texas has no state income tax and no annual LLC fee, but does have a $300 formation fee. Franchise tax only applies to businesses with revenue over $2.47 million.
Net profit: $80,000 (80.0% margin)
LLC taxed as S-Corporation
Recommended at your income level
Consider LLC with S-Corp Election
At your income level, forming an LLC with S-Corp election could provide significant tax savings. The self-employment tax savings typically outweigh the additional costs and complexity.
Texas has no state income tax, making it favorable for business owners.
Enable S-Corp above to preview savings.
Cost Comparison
Sole Proprietorship saves you $60 per year (0.2%)
Tax Comparison
Tax Breakdown
Sole Proprietorship
Total: $25148
- Federal Income Tax:$12908
- Self-Employment Tax:$12240
- State Income Tax:$0
- State Fees:$0
LLC
Total: $25208
- Federal Income Tax:$12908
- Self-Employment Tax:$12240
- State Income Tax:$0
- State Fees:$0
- Formation Fee (amortized):$60
What This Calculator Includes:
Federal income tax
California state income tax
Hiring employees
Self-employment tax vs payroll tax
LLC formation and annual fees
Filing taxes
Pricing
LLC Compliance
$0
Standard LLC filing
Business name search
$70 state filing fee required (paid separately)
Jupid Go
first two months then $49.99/mo
$50
$4.99
/mo
LLC
Smart Bookkeeping and expense deduction
Tax Returns
1-Day Processing
CPA Check
Due Date Alerts
EIN
Registered Agent
$70 state filing fee required (paid separately)
LLC Compliance
$0
Standard LLC filing
Business name search
$70 state filing fee required (paid separately)
Jupid Go
first two months then $49.99/mo
$50
$4.99
/mo
LLC
Smart Bookkeeping and expense deduction
Tax Returns
1-Day Processing
CPA Check
Due Date Alerts
EIN
Registered Agent
$70 state filing fee required (paid separately)
LLC Compliance
$0
Standard LLC filing
Business name search
$70 state filing fee required (paid separately)
Jupid Go
first two months then $49.99/mo
$50
$4.99
/mo
LLC
Smart Bookkeeping and expense deduction
Tax Returns
1-Day Processing
Due Date Alerts
EIN
Registered Agent
$70 state filing fee required (paid separately)
LLC Compliance
$0
Standard LLC filing
Business name search
$70 state filing fee required (paid separately)
Jupid Go
first two months then $49.99/mo
$50
$4.99
/mo
LLC
Smart Bookkeeping and expense deduction
Tax Returns
1-Day Processing
CPA Check
Due Date Alerts
EIN
Registered Agent
$70 state filing fee required (paid separately)
Services
Disclaimer: Jupid is a technology provider only. We do not provide legal, accounting, or tax advice, do not act on behalf of clients, and do not engage in CPA services. All decisions related to company incorporation, bookkeeping, and tax filing are the client’s responsibility. Clients should consult attorneys, accountants, or CPAs for professional advice.
Services
Disclaimer: Jupid is a technology provider only. We do not provide legal, accounting, or tax advice, do not act on behalf of clients, and do not engage in CPA services. All decisions related to company incorporation, bookkeeping, and tax filing are the client’s responsibility. Clients should consult attorneys, accountants, or CPAs for professional advice.
Services
Disclaimer: Jupid is a technology provider only. We do not provide legal, accounting, or tax advice, do not act on behalf of clients, and do not engage in CPA services. All decisions related to company incorporation, bookkeeping, and tax filing are the client’s responsibility. Clients should consult attorneys, accountants, or CPAs for professional advice.
Services
Disclaimer: Jupid is a technology provider only. We do not provide legal, accounting, or tax advice, do not act on behalf of clients, and do not engage in CPA services. All decisions related to company incorporation, bookkeeping, and tax filing are the client’s responsibility. Clients should consult attorneys, accountants, or CPAs for professional advice.