S-Corp Tax Savings Calculator
Compare self-employment tax as an LLC or sole proprietor with payroll tax on a reasonable salary as an S corporation.
Estimated annual payroll tax savings$7,984
- Self-employment tax as LLC / sole proprietor
- $21,194
- Payroll tax on S-corp salary (both halves)
- $10,710
- Added S-corp costs
- $2,500
- Salary as share of profit
- 47%
- Net savings
- $7,984
Estimate only. A CPA will confirm what applies to you.
Review an S-corp election with a CPAAn S-corp election is usually worth reviewing when
- Profit is well above what a reasonable salary for your role would be
- You actively work in the business and can support a reasonable salary
- Profit is stable enough to run payroll every month
- You are willing to keep separate books and file Form 1120-S
- You don't plan to have non-U.S.-resident or entity owners
- Your state doesn't add a tax that offsets the savings
Turn an estimate into a plan
This calculator uses simplified 2026 federal rules to show whether an idea is worth a conversation. A CPA can confirm the numbers with your actual returns, check eligibility and deadlines, and put the plan in place.
Book a consultation About our S-Corp Tax Filing (Form 1120-S) service See all free calculatorsEducational estimate, not tax advice.