Calculate tip amount, total bill, and how much each person pays when splitting.
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A Texas-based freelance graphic designer earns $140,000 net profit/year from client work. She's evaluating whether to stay as a sole proprietor, form an LLC, or elect S-Corp status to reduce self-employment taxes.
Takeaway: S-Corp saves $8,300/year but adds ~$1,500-$3,000 in accounting fees (payroll, extra returns). Break-even is around $80-90K net profit. Below that, the overhead eats the savings. Texas has no state income tax, so the benefit is purely federal SE savings.
LLC annual fees range from $0 (Ohio) to $800 minimum (California, even for zero-revenue LLCs). Delaware C-Corp is standard for VC-backed companies but adds registered agent costs (~$300/yr) for out-of-state entities. The "best" structure is state-specific.
S-Corps cannot have more than 100 shareholders, cannot have non-US shareholders, and cannot have corporate shareholders. Violating these rules (e.g., adding a foreign investor) terminates S-Corp status retroactively, potentially creating a large unexpected tax event.
The IRS requires S-Corp owner-employees to pay themselves a "reasonable salary" before taking distributions. There is no fixed formula — the IRS looks at industry benchmarks, duties, and hours worked. Setting the salary too low is a common audit trigger for S-Corps.
Business break-even models track revenue vs. direct costs. They rarely factor in the owner's time as a cost. If you're working 60 hours/week at imputed $50/hour, your "profitable" business may be paying you $12/hour after the opportunity cost calculation.
Break-Even CalculatorA service business valued on EBITDA multiples (2-4×) gets a very different number than one valued on SDE (seller's discretionary earnings) or discounted cash flow. Buyers and sellers typically use different methods to argue their preferred price. This calculator uses a single method.
Business Valuation CalculatorBased on your inputs
18% of $85
| Bill Subtotal | $85.00 |
|---|---|
| Tip Amount | $15.30 |
| Total Bill | $100.30 |
| Per Person (2) | $50.15 |
| Tip Per Person | $7.65 |
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Standard restaurant tip is 15-20% for good service, 25%+ for exceptional service. Counter service and takeout: 10-15% is common.
Tipping on the pre-tax subtotal is traditional and technically correct. Tipping on the total (with tax) is also acceptable and simpler.
Standard delivery tip is 15-20% of the order total, with a $3-5 minimum for smaller orders, especially in bad weather.
Add up the total bill including tip, then divide by the number of people. Our calculator does this automatically.
Tip hairdressers and barbers 15-20% of the service total. For a $50 haircut, tip $7.50-$10. Tip the shampoo person $3-$5 separately. Holiday tips of one full service cost are customary for regular stylists.
Yes, tip on the full bill including alcohol. The standard 15-20% applies to food and drinks combined. For expensive wine, some diners tip a flat $5-$10 per bottle instead of a percentage, but full percentage tipping is standard.
Tip hotel housekeeping $2-$5 per night, left daily with a note marked 'housekeeping.' Tip more at luxury hotels or for extra requests. Leave the tip each day since different staff may clean your room.
In the US, not tipping for table service is considered very rude because servers earn $2.13-$5 per hour base pay and depend on tips. A 15% minimum is expected. No tip signals extreme dissatisfaction with service.
Tip movers $20-$40 per person for a local move and $40-$80 per person for a long-distance move. For a half-day local move with two movers, $40-$80 total is standard. Offer water and snacks during the move.
Tip pooling collects all tips and redistributes them equally among staff. Tip sharing means servers give a percentage to support staff like bussers (5-10%) and bartenders (10-15%). Laws vary by state on mandatory tip pooling.
Tip = Bill × Tip%
Total = Bill + Tip
Per Person = Total ÷ Number of People
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.