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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.)
BetterRevenues€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
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)