Please fill all required fields
[This is to test whether you are a human visitor and to prevent automated spam submissions.]
Enter the Number as displayed below
    Entity Comparison Analysis Based on Projected Pre-tax Income  
    Unable to load Flash content. The Charts Control requires Flash Player 9.0.45 or higher. You can download the latest version of Flash Player from the Adobe Flash Player Download Center
    Projected Taxable Income:
    Portion of Income taken thru Payroll
    (Payroll is for S-Corp or C-Corp only)
    Personal Service Corporation (PSC)?
    If you're not sure, see the definition of a PSC below.
    Personal Tax Status
    Single (& Married Filing Separate) or Married Filing Joint
    # Exemptions Claimed on your W-2
    Federal Dividend Tax Rate
    State Income tax rate
    City Income tax rate
    FICA Limit
    $ 110,100
    Projected Annual Taxes for Each Enitity Choice
    (Excluding the possible tax on future dividends)
    PLEASE TAKE NOTE! S-Corps and C-Corps could cost an additional $3,000 per year for Administration and Compliance:
    -Payroll tax preparation
    -Workers' Compensation and Unemployment taxes.
    -Filing the 1120, or the 1120-S (Single-owner LLCs need only file a 1040 Schedule C)
    -Periodic Baord meetings: This is a statutory requirement in most states.
    These issues may not cause additional cost for your situation, but they are worth consideration.
    ASSUMPTIONS: 1. This analysis combines personal taxes and business taxes to reflect a complete comparison.
    2. The category "Possible Tax on Dividends" refers to taxes that could occur if the owner takes a dividend.
    The actual taxes incured would depend on the dividend tax rate when the owner declares a dividend, if at all.
    3. Taxpayer is the 100% owner and actively participating in the business.
    4. No income from any other sources.
    5. Benefits are ignored. (C-corp is the better choice for a 'benefits-rich' company).
    6. Alternative Minimum taxes are ignored
    7. Individual Federal Taxes are based on the payroll tax withholding from the Single or Married table.
    Am I a Personal Service Corporation?
    You should consult your CPA to make this determination, but here are some guidelines.
    You might be a Personal Service Corporation (for Tax Purposes) if:
    -The main work of The company is to perform services in The fields of health (including veterinary services),
    law, engineering, architecture, accounting, actuarial science, The performing arts, or consulting.
    -Substantially all of the stock is owned by employees, retired employees, or their estates.
    -Examples may be law firms and medical clinics.