S-Corp Tax Savings Calculator
See how much you could save by electing S-Corp status
Your Business Income
Business profit before owner compensation and income tax
IRS requires a "reasonable salary" for S-Corp owner-employees. 40–60% of income is a common benchmark.
Tax Comparison Results
LLC / Sole Proprietor
S-Corporation
Gross Tax Savings
$4,950
Est. S-Corp Costs
−$1,500
payroll svc + state fees
Net Annual Savings
$3,450
The $40,000 distributed as profit avoids $1,160 in Medicare tax and potentially Social Security tax.
This calculator is for illustrative purposes only and does not account for income tax differences, state taxes, the QBI deduction, or individual circumstances. Consult a CPA before making any S-Corp election.
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Go Deeper — From the Store
S-Corp Election Pack
Elect S-Corp status, set a reasonable salary, and cut your self-employment tax bill. Includes Form 2553 walkthrough.
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