LLC Tax Calculator
Estimate the 2025 federal tax bill on your single-member LLC's profit — self-employment tax plus income tax after the 20% QBI deduction.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
A single-member LLC clears $100,000 of net profit, with no other household income, filing single. Self-employment tax applies to 92.35% of profit ($92,350): 15.3% comes to $14,130. Half of that ($7,065) is deductible, so qualified business income is $92,935 and the 20% QBI deduction is $18,587. Taxable income is $100,000 − $7,065 − $18,587 − $15,000 standard deduction = $59,348, producing income tax of about $7,971 through the 2025 brackets. Total federal bill: $22,100 — an effective rate of about 22.1%. State tax would be extra.
How it works
A single-member LLC is a disregarded entity by default, so its profit is taxed like sole-proprietor income. Self-employment tax is charged on 92.35% of net profit: 12.4% Social Security up to the 2025 wage cap of $176,100, plus 2.9% Medicare with no cap. Qualified business income = profit minus half the SE tax, and the Section 199A deduction is 20% of that (simplified — the real deduction is also capped by taxable income and phases out for specified service businesses above about $197,300 single / $394,600 joint). Taxable income = profit + other income − half the SE tax − the QBI deduction − the 2025 standard deduction ($15,000 single, $30,000 married filing jointly), and the 2025 federal brackets (10% to 37%; married thresholds double the single ones) are applied to that. Total tax = SE tax + income tax. This is a 2025-tax-year, federal-only, simplified educational model.
Good to know
An LLC is a legal wrapper, not a tax status. Forming one changes nothing about your federal taxes by default: a single-member LLC is a “disregarded entity” reported on Schedule C exactly like a sole proprietorship, and a multi-member LLC files as a partnership. What an LLC adds is optionality — you can later elect S-corp taxation (Form 2553) to trim payroll taxes once profits justify a salary-plus-distributions structure, or C-corp taxation (Form 8832) in rarer cases. This calculator models the default: all profit subject to SE tax plus pass-through income tax.
The 20% qualified business income deduction (Section 199A) is the big pass-through perk, and it remains in effect for the 2025 tax year. It trims a fifth off your qualifying profit before income tax — worth $18,587 in the example above — without you spending a dollar. The fine print bites at higher incomes: above roughly $197,300 of taxable income (single; about $394,600 joint) the deduction phases down for specified service trades — consulting, law, health, accounting, financial services and similar — and becomes limited by W-2 wages paid and depreciable property basis. This tool applies the simple 20% and flags, rather than models, those limits.
What an LLC actually buys you is liability protection: kept properly separate, it walls off your personal assets from business debts and many lawsuits. That protection depends on discipline — a separate bank account, no commingling of funds, contracts signed in the LLC’s name — and it does not shield you from your own professional malpractice or loans you personally guarantee. Judge the entity on legal grounds; judge the tax election separately.
Budget for the costs this federal estimate excludes. Many states charge LLCs just for existing: California’s $800 minimum franchise tax is the famous one, and annual report fees, gross-receipts taxes and publication requirements (New York) add up elsewhere. State income tax on the profit itself ranges from zero in Texas or Florida to double digits at the top in California. And because nothing is withheld from LLC profit, plan on quarterly estimated payments with Form 1040-ES — roughly a quarter of the total shown here per payment — to avoid the underpayment penalty.
Frequently asked questions
Does forming an LLC lower my taxes?
By itself, no. A single-member LLC is disregarded for federal tax purposes — profit is reported on Schedule C and taxed exactly like sole-proprietor income, including 15.3% self-employment tax. The LLC provides liability protection and the option to elect S-corp or C-corp taxation later, which is where tax savings can come from.
What is the QBI deduction for an LLC?
The Section 199A qualified business income deduction lets most pass-through owners deduct up to 20% of qualified profit before income tax — no spending required. Above roughly $197,300 of taxable income (single) it phases out for specified service businesses and becomes limited by W-2 wages and property basis; this tool applies the simple 20% and notes those limits as a caveat.
Does this calculator include state taxes or franchise fees?
No — it is a federal-only, 2025-tax-year estimate. State income tax ranges from zero to over 10%, and many states charge LLC franchise or annual fees regardless of profit, such as California's $800 minimum franchise tax. Add those separately for a full picture.
Is this calculator free, and is my data uploaded anywhere?
Yes, it is completely free with no sign-up, and no — everything runs in your browser. Your profit and income figures never leave your device.
People also ask
Can an LLC elect to be taxed as an S-corp?
Yes. An LLC keeps its legal form but files Form 2553 to be taxed as an S corporation, typically to save payroll tax by splitting income into a reasonable salary plus distributions. It adds payroll filings, a Form 1120-S return and extra fees, so it usually pays off once net profit clears roughly $80,000 to $100,000.
Do LLC owners pay quarterly estimated taxes?
Generally yes, if they expect to owe $1,000 or more for the year, because no tax is withheld from LLC profit. Estimates go in with Form 1040-ES in mid-April, mid-June, mid-September and mid-January; paying 90% of this year's tax or 100% of last year's (110% at higher incomes) avoids the underpayment penalty.
What is a disregarded entity?
A business the IRS ignores as separate from its owner for income-tax purposes. A single-member LLC is the classic example: it exists legally under state law, but its income, deductions and self-employment tax all flow straight onto the owner's personal Form 1040 via Schedule C.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.