What your setup is
quietly costing you.
If you are making real money and still filing as an LLC or sole proprietor, you are probably handing the IRS thousands you could keep. Punch in your numbers.
Run The NumbersPunch in your numbers.
Annual net profit, filing status, current setup. That is all it needs.
Your numbers
Your estimate
An LLC pays 15.3% self-employment tax on all your profit. An S-Corp splits it into a salary and distributions, and only the salary gets taxed. That's the gap.
Straight talk: the savings really kick in around $75K to $100K in profit. Below that, the paperwork can cost more than it saves. We'll tell you which side you're on.
Want the exact moves for your situation? Drop your email and we'll send the full breakdown.
Why the number is what it is.
An LLC pays on everything
As a sole proprietor or a default LLC, self-employment tax applies to all of your profit. Every dollar, all year, regardless of what you actually took out.
An S-Corp splits it
Elect S-Corp status and your profit divides into a salary and a distribution. Only the salary carries self-employment tax. The distribution does not.
The salary has to be reasonable
You cannot pay yourself a dollar and call the rest a distribution. The IRS expects a defensible salary for the work you do, and getting that number right is the whole game.
It costs something to run
An S-Corp needs payroll, an extra return and some filing fees. Worth it well past a certain profit, not worth it below. The calculator shows the gross saving, we will tell you the net.
Before you ask.
Is this accurate?
It is a good estimate of the self-employment tax difference, which is the largest single variable. It does not model your state, your other income, your deductions or the cost of running the S-Corp. For the real number we need your actual numbers.
At what profit is an S-Corp worth it?
Usually somewhere past a hundred thousand in profit, but honestly it depends on your state, the salary you would have to pay yourself and what else you earn. Below that the admin often eats the saving.
Do I have to switch to use the calculator?
No. It is free, there is no account, and nobody will call you unless you ask us to. Leave your email if you want the full breakdown and we will send it.
What does it actually cost to run an S-Corp?
Payroll for yourself, an extra business return, and state filing fees. Typically a few thousand a year all in, which is why the election only makes sense above a certain profit.
Can you handle the election for me?
Yes. We file the election, set the salary, and switch the payroll on. Most of it has deadlines attached, so timing matters more than people expect.
Now get the real number.
The calculator gives you an estimate. Book a call and we will run it properly against your actual numbers, your state and your setup.
Run The Numbers