Free Decision Tool
LLC or S-Corp?
Five questions. CPA-grade verdict. Based on the actual variables that drive the decision — profit, reasonable comp, state tax, complexity tolerance, QBI interaction.
Pick the option that best fits your situation for each question. Your verdict appears after all five are answered.
1. What's your projected net business profit this year?
2. Can you defensibly pay yourself a reasonable salary above ~$60K for the work you do?
Based on BLS data, industry comparables, or similar roles in your market.
3. Which state are you in?
California adds a 1.5% S-corp tax (min $800). Texas, Florida, Washington — no extra cost.
4. How do you feel about running payroll + filing a separate 1120-S each year?
5. Do you currently benefit from the QBI deduction as an LLC?
20% deduction on pass-through business income — affects the S-corp math.
Answer all questions to see your result.
Run the actual numbers
The quiz gives you the direction. The S-Corp Savings Calculator gives you the dollars — federal payroll tax savings net of overhead and California-specific costs.
Keep reading
Schedule K-1
IRS form reporting a partner's, S-corp shareholder's, or trust beneficiary's share of income, deductions, and credits.
GlossaryPassthrough Entity
A business entity that doesn't pay federal income tax — income passes through to the owners.
GlossaryS-Corporation (S-Corp)
A passthrough entity that allows owner-employees to split income between salary (subject to FICA) and distribution (not).
GlossaryLimited Liability Company (LLC)
A flexible legal entity that combines personal liability protection with passthrough taxation by default.
GuideS-Corp vs. LLC for Small Business Owners
When the S-corp election actually saves money for an LLC owner, and when it costs more in headaches than it pays in taxes.
GuideK-1 Income: What It Is and How to File It
If you're a partner, S-corp shareholder, or LLC member, you'll get a K-1. Here's how to read it and where each number lands on your 1040.