Let’s keep it simple. An S Corporation isn’t some shiny new business entity—it’s just a different way to have your current LLC taxed. That small shift can change how you pay yourself, and more importantly, how much of your hard-earned money you hand over in taxes.
Here’s how it works. With an S-Corp, you still own your LLC. But instead of taking all your profit as self-employed income (and paying self-employment tax on the whole thing), you split it. You pay yourself a reasonable salary, and then you take the rest as a distribution. Distributions don’t get hit with self-employment tax. That’s the secret sauce.
Things to remember:
You pay
in self-employment tax
You might only pay
in self-employment tax
This calculator is for sample purposes only. We recommend consulting a licensed professional to assess your specific situation, as this calculator does not account for all factors.
S Corporations can be a powerful tax-saving strategy, but they are not the best fit for everyone.
Contact us to determine if an S Corp is right for you and to learn how to maximize tax savings, comply with statutory requirements, and minimize audit risk.
We’ll get your S-Corp status locked in with the IRS.
Let’s talk it through — no pressure.
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