US LLC vs C-Corporation Tax Calculator (2026/2027)
Compare 0% pass-through tax efficiency of a foreign-owned US LLC against the 21% corporate tax rate of a Delaware C-Corp.
$100,000 USD
Best for Bootstrapped / Agencies
Single-Member US LLC
Pass-through entity. 0% US Federal Income Tax for non-residents without ETBUS.
US Corporate Tax Rate:0% (Pass-through)
Total US Federal Tax Paid:$0 USD
Net Owner Take-Home
$100,000 USD
Delaware C-Corporation
Required for US VC fundraising & stock option pools. Subject to double taxation.
21% Federal Corporate Tax:$21,000
30% Dividend Withholding Tax:$23,700
Net Owner Take-Home
$55,300 USD
Need Structure Advice from a US Tax Attorney?
Form Wyoming LLC or Delaware C-Corp with full tax structuring.
Real-Time Mathematical Audit
Live Step-by-Step LLC vs C-Corp Tax Audit
Line-by-line proof of corporate tax, dividend withholding, and net founder take-home income.
Step 1: Gross Net Profit Base$100,000 Net
Annual Net Revenue: $100,000 USD
LLC IRS Status: Disregarded Pass-Through
C-Corp IRS Status: Subchapter C Entity
Step 2: Federal Corporate Tax (21%)LLC $0 Tax ✅
LLC Corporate Tax (0%): $0 USD
C-Corp Corporate Tax (21%): $21,000 USD
C-Corp Retained Earnings: $79,000 USD
Step 3: Dividend Withholding Tax (30%)Double Tax ⚠️
LLC Owner Distribution Tax: $0 USD (0% Pass-Through)
C-Corp Dividend Tax (30%): $23,700 USD
Step 4: Net Founder Take-Home AdvantageLLC Saves $44,700
LLC Net Take-Home Pay: $100,000 USD
C-Corp Net Take-Home Pay: $55,300 USD
LLC Extra Annual Profit Kept: +$44,700 USD
US LLC vs C-Corporation Decision Matrix (2026/2027)
| Entity Metric | Single-Member US LLC | Delaware C-Corporation |
|---|---|---|
| IRS Taxation Model | Pass-Through Disregarded Entity ✅ | Subchapter C Entity (Double Tax) ⚠️ |
| Federal Income Tax Rate | 0% (For non-residents w/o ETBUS) | 21% Flat Corporate Tax |
| Dividend Withholding Tax | 0% (No Dividend Tax) | 30% Non-Resident Withholding |
Knowledge Base
Frequently Asked Questions (US Structure Choice)
A foreign-owned Single-Member LLC is treated as a disregarded pass-through entity by the IRS. If you have no physical presence (ETBUS) in the US, net profits pass through to you tax-free at the federal level (0% US income tax).
ADVAQ US Tax & Entity Advisory
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Whether incorporating a 0% tax Wyoming LLC or a VC-ready Delaware C-Corp, ADVAQ provides end-to-end legal drafting, EIN, and banking setup.