S-CORP TAX SAVINGS

Calculate your potential Self-Employment Tax savings by electing S-Corporation status

$
Typical range: $60,000 - $500,000+
30%
40%
Salary: $40,000
70%
W-2 Salary (subject to SE tax):$40,000
Distributions (no SE tax):$60,000

TAX COMPARISON

Schedule C (Sole Proprietor)
$14,130
15.3% Self-Employment Tax on all profit
S-Corporation
$8,712
SE Tax only on salary portion
Annual Tax Savings
$5,418
$451/month • 5.4% of profit

HIGHLY RECOMMENDED

With $100,000 in annual profit, S-Corp election could save you $5,417.73 annually. This requires proper payroll setup and compliance.

S-CORP BENEFITS

  • Reduce Self-Employment Tax burden
  • Take tax-free distributions
  • Enhanced business credibility

REQUIREMENTS

  • Run proper payroll for W-2 salary
  • File separate S-Corp tax return
  • Maintain corporate formalities

IMPORTANT NOTES

  • Salary must be "reasonable" per IRS
  • Additional compliance costs apply
  • Consult a tax professional first

LET US HANDLE IT

Our Studio Plan includes everything you need for S-Corp compliance: payroll processing, quarterly estimated taxes, and S-Corp tax return preparation.

Disclaimer: This calculator provides estimates for educational purposes only and should not be considered tax advice. Actual tax savings will vary based on your specific circumstances, state taxes, and other factors.

The calculations assume standard Self-Employment Tax rates and do not include income tax, state taxes, or other considerations. Always consult with a qualified tax professional before making entity election decisions.