Tax · Guided planner2026 federal + Minnesota
Which business setup leaves you the most?
Sole proprietor, partnership, S corporation or C corporation: see the tax each would pay on your 2026 numbers, side by side, with every line explained. Use full-year amounts.
Four setups, one set of numbers.
Your business. Your numbers. Your household.
Then the tax each setup would pay, side by side.
Official sources & method
2026 figures checked November 1, 2026 against IRS and Minnesota sources. Formulas can differ by a few dollars from IRS tables and return rounding.
- IRS Rev. Proc. 2025-32: 2026 brackets, standard deduction, qualified-dividend breakpoints and QBI thresholds
- QBI deduction: W-2 wage limit, $75,000 / $150,000 phase-in, $400 minimum (26 U.S.C. 199A)
- IRS self-employment tax: 15.3%, $184,500 wage base, $400 threshold
- IRS Topic 751: Social Security and Medicare withholding rates
- IRS Topic 560: Additional Medicare tax thresholds
- IRS Topic 759: federal unemployment tax (FUTA) 6.0% and the 5.4% credit
- Corporate income tax, 21% (26 U.S.C. 11(b))
- IRS Topic 559: net investment income tax 3.8%
- Partners’ self-employment income and guaranteed payments (26 U.S.C. 1402(a))
- Form 2553 instructions: S election deadline
- Form 8832 effective date, 75 days back / 12 months ahead (26 C.F.R. 301.7701-3)
- Minnesota corporate franchise tax 9.8% and individual rates (Minn. Stat. 290.06)
- Minnesota 2026 brackets and standard deduction
- Minnesota minimum fee, 2026 tiers (Minn. Stat. 290.0922)
- Minnesota pass-through entity tax (Minn. Stat. 289A.08 subd. 7a; addback 290.0131 subd. 5)
- Minnesota unemployment insurance 2026 wage base (owner-officer exclusion, Minn. Stat. 268.035 subd. 20)
- Minnesota Paid Leave premiums (Minn. Stat. 268B.14) and DEED 2026 rates