C Corporation vs Pass-Thru
C Corporation versus Pass-Through Entity from Income Tax Perspective    
     
Gross Profit  
Other Income  
Owner Compensation (C Corp S/H Salary, S Corp S/H Salary, Partnership Guaranteed Payment) (Enter as Negative Amount)  
Qualified Retirement Plan Contributions for Owners (Enter as Negative Amount)  
Employee Benefits for Owners (Enter as Negative Amount)  
Other Expenses (Enter as Negative Amount)  
Federal Taxable Income before IRC 199A Deduction for Pass-Through Entity  
IRC 199A Deduction for Pass-Through Entity (Use IRC 199A Deduction Tab to Calculate)  
Federal Taxable Income  
     
Is Shareholder Taking a Dividend from C Corporation?
 
Corporate Income After Federal and State Income Tax Payable  
Amount of Dividend  
Federal Income Tax Rate on Dividend (Assuming Qualified Dividend)
 
Current Year Corporate Income Remaining After Corporate Income Taxes and Dividend  
Apply Accumulated Earnings Tax
 
Amount Needed for Reasonable Business Needs  
     
For Pass-Through Owner, Are Employee Benefits for Owner Deductible on Form 1040?
 
Filing Status
 
Tax Year
 
     
C Corporation Income Tax Analysis    
Corporate Federal Taxable Income  
Corporate Federal Income Tax Payable  
Corporate State Income Tax Payable (Manual Entry)  
Accumulated Earnings Tax  
Corporate Net After-Tax Income  
     
Shareholder Personal Federal Income Tax on Salary (Assuming Salary Equals Taxable Income on Form 1040)  
Shareholder Personal Federal Income Tax on Dividend (Assuming Qualified Dividend)  
Shareholder Personal State Income Tax Payable on Salary & Dividend (Manual Entry)  
Shareholder Personal Federal & State Income Tax Payable on Salary & Dividend  
     
Total Corporate Federal & State Income Tax & Shareholder Federal & State Income Tax Payable  
     
Effective Combined Tax Rate on Corporate Income Tax Payable & Shareholder Income Tax Payable  
     
Pass-Through Income Tax Analysis    
Pass-Through Federal Taxable Income  
Pass-Through Owner's Salary/Guaranteed Payment  
Pass-Through Owner's Federal Income Tax Payable (Assuming Income Here Equals Taxable Income on Form 1040)  
Pass-Through Owner's State Income Tax Payable (Manual Entry)  
     
Pass-Through Owner's Effective Income Tax Rate  
     
199A Deduction  
   
Tax Year
Filing Status
Specified Service Trade or Business
Net Capital Gain Income
Qualified Trade or Business Income
W-2 Wages Paid to Employees
Qualified Property Unadjusted Basis
Taxpayer's Other Net Income / (Deductions) To Get to Taxable Income
   
   
Deduction  
Taxable Income Before Deduction
IRC 199A Deduction
Taxable Income After Deduction
   
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The decision to operate a business through a C corporation or a pass-through entity involves many factors. Some factors that are not included in this calculator are, but are not limited to, creditor protection, issuing second classes of stock, and ownership limitations. Advisors may want to consider these qualitative factors as well.

These calculators do not represent tax, accounting, or legal advice. Individual taxpayers should rely on their own advisors. The authors and publisher expressly waive and disclaim any and all warranties concerning the calculators and their use or operation, whether express or implied, including without limitation, any warranty of merchantability or fitness for a particular purpose. The authors make no warranties as to the results to be obtained from the use of the calculators. You expressly agree that the use of the calculators is at your sole risk. The authors will not in any way be liable to you or any other person or entity for any damages, claims, liabilities or losses, regardless of cause, arising from the use of the calculators. The calculators are provided to you on an "as is" basis and without warranty of any kind.