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Sole trader vs LLC

Compare overall tax burden (2026)

See whether it is more efficient to operate as a sole trader (SZČO) or via an LLC (s.r.o.) in Slovakia. The calculator considers income tax, contributions and dividends.

Inputs
Enter expected annual revenues and expenses

Max €20,000 per year

€915.00/month

Sole trader (SZČO)
Revenues€50,000.00
Expenses€20,000.00
Profit€30,000.00
Social insurance-€6,692.46
Health insurance-€3,230.15
Income tax-€2,116.60
Net income€17,960.79
Effective rate24.1%
LLC (s.r.o.)
Better
Revenues€50,000.00
Expenses€10,000.00
Profit before tax€40,000.00
Corporate income tax-€4,000.00
Profit after tax€36,000.00
Dividend withholding tax (7%)-€2,520.00
Net dividend€33,480.00
Owner net income€33,480.00
Effective rate13.0%

LLC (s.r.o.) is better

Difference: €15,519.21 per year

Consult an advisor

Important notice

This calculator provides an indicative result based on 2026 rates. It does not cover all possible deductions, exemptions or individual circumstances. For an accurate assessment, we recommend a consultation with a tax advisor.

What this calculator includes:

  • Sole trader: flat-rate expenses 60% (max €20,000), income tax 15% up to €100k turnover, otherwise progressive 19–35%
  • LLC: corporate income tax 10% up to €100k, 21% standard, 24% above €5M; minimum tax €340–€11,520 by turnover
  • LLC: dividend withholding tax 7%
  • Non-taxable allowance €5,966.73 (sole trader and wage)
  • Health insurance: employee 5%, sole trader 16% (from 2026)