Is an S-Corp Right for You?

Being taxed as an S-Corp can significantly reduce your self-employment taxes. Use our S-Corp Tax Calculator to discover how much you can save by electing S-Corp status for your business. Calculate now and see immediate benefits.

By the Numbers

If you take $70,000 out of your business:

VS

Form an LLC

An LLC is a smart choice for many businesses because of the flexibility in how you're taxed.

In employment tax$10,710

Saving $0

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SAVE $3,825

Form an S-Corp

With an S-Corp you'll only pay payroll taxes on your salary, not the entire business profit.

In employment tax$6,885

Saving $3,825

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Breaking Down the S-Corp

An S-Corporation (S-Corp) offers key benefits like avoiding double taxation, potential savings on self-employment taxes, protecting personal assets, deducting business expenses, adding credibility, and simplifying ownership transfers — making it a smart choice for many business owners.

Why Choose an S-Corp?

Allows potential savings on self-employment taxes through distributions

Allows for pass-through taxation

Protects personal assets

Enables deductions for business expenses

Important Considerations

Pay a reasonable salary to avoid IRS audits

File the IRS Form 2553 within 75 days of LLC formation

There are IRS and corporate guidelines that need to be upheld

S-Corp Tax Savings Example

As a Sole Proprietor

Pay self-employment taxes on your entire income.