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:
Form an LLC
Form an S-CorpBreaking 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.
Allows potential savings on self-employment taxes through distributions
Allows for pass-through taxation
Protects personal assets
Enables deductions for business expenses
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
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.
