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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.

What’s your estimated yearly net income for the business and how much of that would you pay yourself as an S Corporation?

Estimated yearly income

$

Input a maximum of $1,000,000.

The salary you would pay yourself

$

This amount can’t exceed the estimated yearly income.

By the Numbers

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

LLC Taxes

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

VS

S-Corp Taxes

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

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?

<p>Allows potential savings on self-employment taxes through distributions</p>

Allows potential savings on self-employment taxes through distributions

<p>Allows for pass-through taxation</p>

Allows for pass-through taxation

<p>Protects personal assets</p>

Protects personal assets

<p>Enables deductions for business expenses</p>

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.

As an S-Corp

Split your income between salary and distributions to reduce your tax burden.

Join  1,000,000+ entrepreneurs like you