Vol. II · Issue 47
Monday, May 5, 2026
Wash., D.C. · Brooklyn, N.Y.
llctax
2025 Tax Year
Federal · 50 States · D.C.
Last updated: 04 May 2026
The independent broadsheet of self-employment tax — founded by people who actually paid them.

The 2025 Question Filed by Q1 2026 · 47 days remaining

How much is the IRS actually taking from your LLC in 2025?

Calculate federal + state taxes, self-employment tax, and QBI deductions. No signup. No upsell.

Federal 10.9%
Self-Emp. 15.3%
State Avg. 5.2%
QBI Deduction Up to 20%
M 59
Total U.S. Freelancers
% 25.2
Avg. Tax Rate
% 94
QBI Eligible
pts 18
State Variance
% 0.4
Audit Risk (LLC)
DEDUCTIONS
Read the full guide
2025
18K
Annual Savings Home Office + Vehicle Deductions

The Overlooked Deduction That Saves $18K Annually

Home office expenses, vehicle use, and equipment depreciation—properly documented.

The most valuable deduction for self-employed individuals is often overlooked entirely. When properly tracked and documented, home office expenses alone can reduce your taxable income by thousands of dollars annually.

Proper documentation is non-negotiable. The IRS requires contemporaneous records, not retroactive estimates. IRS Publication 587

Beyond the office, vehicle use for business purposes, equipment depreciation, and professional development all qualify for deduction—but each requires specific documentation practices.

By The Numbers

2025 federal tax brackets for single filers. Your effective rate depends on total taxable income after deductions.

IRS Publication 17 · 2025 Tax Year

Income Range Marginal Rate Tax on Max
$0 – $11,600 10% $1,160
$11,600 – $47,150 12% $4,266
$47,150 – $100,525 22% $11,771
$100,525 – $191,950 24% $21,915
$191,950+ 32%+ Variable
Based on 2025 standard deduction ($14,600) for single filers.

2026 Quarterly Schedule

Estimated tax payments due on these dates. Miss a deadline and face penalties.

Q1
15
April

Jan–Mar income

40 days
Q2
15
June

Apr–Jun income

71 days
Q3
15
Sept

Jul–Sep income

162 days
Q4
31
Jan

Oct–Dec income

239 days

Which Structure Saves the Most?

LLC vs. S-Corp vs. Sole Proprietor: tax impact comparison for $80K–$300K net income.

01
Sole Proprietor

Simplest structure. All income taxed at self-employment rate.

Pass-through entity
QBI deduction eligible
Self-employment tax on 92.35% of net
Can elect S-Corp status
Est. Tax on $100K
$28,400
Baseline
02
LLC (Pass-through)

Default tax treatment = sole proprietor. Can elect to be taxed as S-Corp.

Pass-through entity
QBI deduction eligible
Self-employment tax on 92.35% of net
Can elect S-Corp status
Est. Tax on $100K
$28,400
Same as sole prop

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