[Company Name]

Business Structure Selector

[Date]
[Company Name] CONFIDENTIAL

Gray cells will be calculated for you. You do not need to enter anything in them.
Planned number of owners
Required protection from personal liability
Net income for business
Owner's share of income
Salary received from business
Owner's other income subject to self-employment tax
Owner's marginal tax rate
State income tax rate on individual income
State income tax rate on business income

Option available?
If no, reason option not available
Election to be treated as corporation? (Yes/No)
Business tax return required
Protection from personal liability
Estimated Tax Liability Caused by Business
Salary from business
Business income currently taxable to owners
Percent that is self-employment income
Income from business subject to self-employment tax
Business income taxable to business
Individual Tax
FICA tax withheld from salary
Tax on individual tax return:
Federal income tax
Self-employment tax
Tax saved on self-employment tax deduction
State income tax
Total individual tax
Business Tax
FICA tax withheld from wages
Tax on business return:
Federal income tax
State income tax
Total tax paid by business
Tax on future year dividend on personal return:
Federal income tax
State income tax
Total tax on individual income
Total tax on business income
Total tax on combined income
Effective tax rate individual income
Effective tax rate business income

2
Low
$250,000
$125,000
$20,000
$20,000
28%
5.00%
8.00%
Sole
Proprietorship
No

Partnership

Corporation

Limited Liability
S Corporation
Corporation (LLC)
Yes
Yes

Yes

Yes

None
Low

Form 1065
Low

Form 1120
High

Form 1120S
High

N/A
N/A
N/A

$20,000.00
$125,000.00
$1.00

$20,000.00

$20,000.00
$125,000.00

N/A

$125,000.00

N/A

N/A

$0.00
$125,000.00

Number of
planned owners

N/A
N/A

$1,530.00

$0.00
$0.00

$1,530.00

$0.50
$62,500.00

Yes
Form 1120
High

$20,000.00
$0.00
$0.00

N/A

$0.00
$125,000.00

$1,530.00

$1,530.00

$40,600.00
$10,962.58
-$1,534.76
$7,250.00
$58,807.82

$5,600.00

N/A
N/A
N/A
N/A

$0.00
$0.00
$1,000.00
$8,130.00

$40,600.00
$8,830.97
-$1,236.34
$7,250.00
$56,974.63

$5,600.00
$0.00
$0.00
$1,000.00
$8,130.00

N/A

$1,530.00

$1,530.00

$1,530.00

$1,530.00

N/A
N/A
N/A

N/A
N/A
$1,530.00

$40,375.00
$8,400.00
$50,305.00

N/A
N/A
$1,530.00

$40,375.00
$8,400.00
$50,305.00

N/A

N/A

$35,000.00

N/A

$35,000.00

N/A
N/A

N/A
$60,337.82

$5,250.00

N/A
$58,504.63

$5,250.00

$0.00
N/A

$0.00
$60,337.82

$48,775.00

$48,775.00

$98,685.00

$0.00
$58,504.63

$0.34

$0.40

N/A
N/A

$0.42
N/A

$49,910.00

$0.39

N/A

$49,910.00
$98,685.00
$0.34
$0.39

Effective tax rate combined income

N/A

$0.42

$0.79

$0.40

$0.79

[Company Name]
Tax Calculations
[Date]
[Company Name] CONFIDENTIAL

Gray cells will be calculated for you. You do not need to enter anything into them.
Individual Income Tax Rates
35%
33%
28%
25%
15%
10%
Self-Employment (SE) Tax
Maximum earnings
Social security tax rate
Medicare tax rate

$90,000
12.40%
2.90%

SE income from business

Other SE income
Total SE income
Taxable social security income
Social security tax
Medicare tax
Total SE tax

Sole
Proprietorship
$0
20,000
20,000
18,470
2,290
536
2,826

Partnership
$125,000
20,000
145,000
83,115
10,306
2,410
12,717

S Corporation
$62,500
20,000
82,500
76,189
9,447
2,209
11,657

Limited Liability
Corporation
$0
20,000
20,000
18,470
2,290
536
2,826

10,963

8,831

SE tax from [Company Name]

FICA Tax for Employees and Businesses
Maximum earnings
$90,000
Social security tax rate
6.20%
Medicare tax rate

1.45%

Corporate Tax Rate Schedule

If taxable income is

Over
$0
$50,000
$75,000
$100,000
$335,000
$10,000,000
$15,000,000
$18,333,333

But not over

$50,000
$75,000
$100,000
$335,000
$10,000,000
$15,000,000
$18,333,333

Of the
amount over

Tax is
$7,500
$13,750
$22,250
$113,900
$3,400,000
$5,159,000

+
+
+
+
+
+

15%
25%
34%
39%
34%
35%
38%

$0
$50,000
$75,000
$100,000
$335,000
$10,000,000
$15,000,000

35%
Total

$0

Total
corporate tax
$0
$0
$0
$80,750
$0
$0
$0

Owner's share
$0
$0
$0
$40,375
$0
$0
$0

$0
$80,750

$40,375

$0