See exactly how much you could save in self-employment taxes by electing S-Corp status. Enter your net business income and get a detailed breakdown in seconds.
Enter your expected annual net business profit. We will show you the self-employment tax difference between an LLC and an S-Corp.
Your business profit after expenses, before owner pay
Used to estimate federal income tax bracket
Select your highest marginal state rate
IRS requires a "reasonable salary": typically 40-60% of profit
Quick Answer
An S-Corp election makes sense when your net business profit exceeds $40,000-$50,000 per year. Below that threshold, the cost of S-Corp compliance (payroll, tax filing) typically outweighs the self-employment tax savings. The key benefit: with an LLC, you pay 15.3% self-employment tax on all net profit. With an S-Corp, you only pay payroll taxes on your salary: distributions above salary avoid the 15.3% SE tax. Example: $100K profit, $60K salary = SE tax on $60K only, saving approximately $6,120/year.
FAQ
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Our Premium package includes S-Corp election (Form 2553), your federal business tax return, tax strategy consultation, business website, and domain. Starting at $899 + state fee.
