How Much Could You Save on Taxes?
Compare LLC, S-Corp, and Partnership tax strategies side by side. Enter your income and see exactly how much you could save by choosing the right business structure.
Enter Your Information
We'll calculate your estimated taxes for each business structure.
Ready to See Your Savings?
Enter your annual business income on the left and click "Calculate My Tax Savings" to see a side-by-side comparison of LLC, S-Corp, and Partnership tax strategies.
Common Tax Deductions by Industry
Select your industry to see the most common deductions. Check the ones that apply to you — we'll show you how much you could be saving.
Is an S-Corp Right for You?
The IRS requires S-Corp owners to pay themselves a "reasonable salary" — typically 40–60% of net income. Here's the full picture: tax savings vs. real costs.
Enter your income in the calculator above to see your personalized S-Corp analysis.
Estimated Quarterly Tax Payments
Self-employed individuals must pay taxes 4 times a year. Here's exactly how much to set aside each quarter — and when to pay.
Who Needs to Pay Quarterly?
If you expect to owe $1,000 or more in federal taxes for the year and your income is not subject to withholding (W-2), the IRS requires you to make estimated quarterly payments.
Failing to pay quarterly can result in an underpayment penalty, even if you pay the full amount at tax time.
Safe Harbor Rule
To avoid penalties, pay at least 100% of last year's tax liability (110% if your income was over $150,000), OR 90% of your current year's estimated tax.
Enter your income in the calculator above to see your personalized quarterly payment schedule.
Mileage Deduction Calculator
Calculate your IRS mileage deduction for business, medical, charity, or moving trips. The IRS sets a standard rate each year — use it to reduce your taxable income.
How many miles did you drive?
Total miles driven for this purpose in 2025
Enter your miles above to see your deduction
Typical Annual Miles by Industry
Pro Tips for Mileage Deductions
Keep a mileage logbook: date, destination, business purpose, and odometer readings. The IRS requires documentation for all mileage deductions.
Use apps like MileIQ, Everlance, or TripLog to automatically track your business miles — they generate IRS-compliant reports.
Commuting from home to your regular office is NOT deductible. However, driving from your office to a client site IS deductible.
If you use your vehicle for both personal and business purposes, only the business percentage is deductible. Keep records to calculate the exact split.
This calculator uses the 2025 IRS standard mileage rates. Actual deductions depend on your specific situation. Consult a tax professional for personalized advice.
Per Diem Calculator for Truckers
The IRS allows self-employed truckers and OTR drivers to deduct a daily meal & incidental allowance for every night spent away from home. This is one of the most valuable — and most overlooked — deductions in the trucking industry.
Days away from home (domestic)
Partial days (departure/arrival) count as full days for per diem purposes.
Enter your days away from home to see your deduction
What is Per Diem?
Per Diem (Latin for "per day") is a daily allowance the IRS allows for meals and incidental expenses when you are away from home overnight for work. For self-employed truckers, this replaces the need to keep every meal receipt.
Who Qualifies?
You qualify if you are a self-employed trucker or OTR (Over-the-Road) driver who travels away from your tax home overnight. Your "tax home" is the city or area where your main place of business is located.
The 80% Rule
Unlike most business meal deductions (50%), transportation workers who are subject to DOT hours-of-service rules can deduct 80% of their per diem. This is a special benefit for truckers.
What Records Do You Need?
You must document: (1) the date of each trip, (2) the destination, (3) the business purpose, and (4) that you were away from home overnight. You do NOT need to keep meal receipts if using the standard rate.
Per Diem rates are set by the IRS for 2025. The 80% deductibility rule applies to transportation workers subject to DOT hours-of-service regulations. Consult a tax professional for your specific situation.
Section 179 Equipment Deduction
Section 179 allows business owners to deduct the full purchase price of qualifying equipment, vehicles, and software in the year of purchase — instead of depreciating it over many years. Combined with 40% Bonus Depreciation, this can dramatically reduce your tax bill.
Asset Name
Add your equipment or vehicles above to calculate your deduction
What is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. Instead of depreciating assets over 5-7 years, you get the full deduction in year one.
What Qualifies?
Qualifying property includes: machinery and equipment, business vehicles (with limits for SUVs), computers and software, office furniture, and certain improvements to non-residential real property. The asset must be used more than 50% for business.
Bonus Depreciation (40% in 2025)
After Section 179, remaining eligible property can use Bonus Depreciation. In 2025 it is 40% (down from 60% in 2024, 80% in 2023). It phases out completely by 2027 unless Congress extends it.
Vehicle Limits
Heavy SUVs (over 6,000 lbs GVWR) are capped at $30,500 under Section 179. Pickup trucks and vans over 6,000 lbs with a cargo bed of at least 6 feet have no Section 179 cap. Passenger vehicles have annual luxury limits.
Section 179 limits are for 2025. Bonus Depreciation is 40% for property placed in service in 2025. Vehicle limits apply. Section 179 cannot create a net loss. Consult a tax professional for your specific situation.
Which Business Structure is Right for You?
Understanding the difference between LLC, S-Corp, and Partnership is the first step to saving money on taxes. Here's a plain-English breakdown.
LLC
Simple & FlexibleLimited Liability Company
An LLC is like a protective shield for your personal assets. Your business is separate from you legally, but for taxes, all profits flow directly to your personal tax return.
- Easy to set up and maintain
- Flexible profit distribution
- Personal asset protection
- No corporate formalities required
- All profits subject to self-employment tax (15.3%)
- No salary/distribution split benefit
- Higher tax burden at higher income levels
S-Corp
Tax-Saving PowerhouseS Corporation
An S-Corp lets you split your income into a salary and distributions. You only pay payroll taxes (15.3%) on your salary — not on your distributions. This is the key tax advantage.
- Significant payroll tax savings
- Only salary subject to SE tax
- Distributions are tax-advantaged
- Credibility with investors and banks
- More complex and costly to maintain
- Must pay yourself a 'reasonable salary'
- More paperwork and compliance requirements
- Best when income is above ~$80,000
Partnership
For Multiple OwnersGeneral Partnership
A partnership is for businesses with two or more owners. Each partner reports their share of income on their personal tax return. Tax treatment is similar to an LLC.
- Simple pass-through taxation
- Flexible profit sharing between partners
- No double taxation
- Easy to form
- Each partner pays self-employment tax
- Partners are personally liable
- Requires a partnership agreement
- Similar tax burden to LLC
IRS Forms You Need to Know
Each business structure requires different tax forms. Here's a quick reference guide to the most important ones.
U.S. Individual Income Tax Return
The main form every American uses to file their annual federal income tax return.
Profit or Loss from Business
Attached to Form 1040. Reports your business income and expenses if you're a sole proprietor or single-member LLC.
S Corporation Tax Return
The annual tax return filed by S Corporations. Reports the company's income, deductions, and credits.
U.S. Return of Partnership Income
Annual information return filed by partnerships. Reports income, deductions, and each partner's share.
Self-Employment Tax
Calculates the self-employment tax (Social Security + Medicare) you owe as a self-employed person.
Partner's / Shareholder's Share of Income
Issued to each partner or S-Corp shareholder showing their share of the business income to report on their personal return.
Get Personalized Tax Advice
Every tax situation is unique. Tell us a bit about yourself and we'll help you choose the right business structure and maximize your savings.