Free Calculator
S-Corp Savings Calculator
Estimate whether the S-corp election will actually save you money, net of payroll-provider cost, additional tax prep, and (if you're in California) the 1.5% S-corp tax on the distribution.
Your situation
Adjust the inputs to see whether the S-corp election is likely worth the overhead.
Estimated outcome
+$6,694
estimated net annual savings vs. staying as an LLC / Schedule C
Read this carefully
Estimates only. Actual savings depend on reasonable comp, state rules, retirement plan contributions, QBI deduction effects, and your specific facts. A licensed CPA should run a full analysis before you elect. Review your election.
Estimates for educational purposes only, not tax, legal, investment, or accounting advice. Your specific facts will change the result; confirm with a CPA before acting.Want a real analysis?
This calculator is a directional estimate. The real S-corp decision depends on factors it can't model, reasonable comp evidence for your role, retirement plan contribution structure, QBI deduction interactions, ownership-share considerations, and state-specific rules beyond California.
For a full S-corp vs. LLC analysis tailored to your facts, our CPA-led tax practice runs the numbers, files the election, and handles the ongoing 1120-S returns.
Frequently Asked
S-corp election questions
- Who should consider the S-corp election?
- Owners of an LLC or sole proprietorship whose business profit comfortably exceeds a reasonable W-2 salary for the work performed, typically once profit is at least $80–100K above that reasonable salary. Below that, payroll, 1120-S preparation, and California's 1.5% S-corp tax usually exceed the payroll-tax savings.
- What inputs does the S-corp calculator need?
- Net business profit, a reasonable W-2 salary for your role, your state (California carries an extra 1.5% S-corp tax), and an estimate of payroll-service and additional tax-prep cost. The calculator returns the estimated net annual savings after those offsets.
- Is the S-corp election right if I'm in California?
- California imposes a 1.5% franchise tax on S-corp net income (minimum $800), which eats into the savings. The election still makes sense for many California owners, but the profit threshold is higher than in states with no S-corp-level tax.
- Does the calculator account for QBI and reasonable compensation rules?
- No, this is a directional estimate. It does not model QBI deduction interactions, retirement plan contribution structures, or evidence for IRS reasonable-compensation challenges. For an actual decision, a CPA-led S-corp vs. LLC analysis is recommended.
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.
GlossaryS-Corporation (S-corp)
A passthrough entity that allows owner-employees to split income between salary (subject to FICA) and distribution (not).
GlossaryFICA (Social Security & Medicare Tax)
Federal payroll taxes funding Social Security and Medicare, split between employer and employee.
GlossarySelf-Employment Tax
Combined Social Security + Medicare tax (15.3%) owed by self-employed individuals on net earnings.
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.