tax calculator to compare sole proprietor vs. corp?

Question

is there tax calculator or website to quickly compare the "tax impact" of sole proprietor vs. corp?

I am interested in only looking the financial impact...I do not need definitions of "sole proprietor" or "corp."

A C-Corp. Not S-Corp.

State of California

Answer 1

If there is, I am not aware of it.

I doubt you will find one though. Mainly because there is more to it than just income tax. An S-corp will save you Self Employment taxes as oppsed to a sole proprietorship but the income tax is the same. A C-corp will generally pay less taxes as well unless you're in one of the higher brackets. However, with a C-corp you also get to pay taxes on any income you draw from the corp. Whatever you do don't pay yourself dividends.

Another consideration is the state you're in. Texas for example doesn't have individual income tax but does have Margin tax (previously franchise tax) for corporations and LLCs.

Answer 2

if you form a corp of any kind you have a minimum tax you pay to the state regardless of how much you make, and yes, you will fill entirely different tax returns for that form of business forming a corp actually creates a completely different entity, totally separate from your personal if you operate your business as a sole proprietor you file Sch C and SE on your income and expenses and with your SS# unless you are going to pay employees and then you will need an EIN # and pay, file and report wages and withheld taxes

Answer 3

What kind of "corp"? If it's an S-Corp, there is NO difference.