Profit crossed $60k
You want to know if the tax savings can cover payroll setup, bookkeeping, and the annual S-Corp return.
Updated for 2026 planning
Browser-only estimate
Source-backed method
See whether an S-Corp election is worth the paperwork.
Model annual savings after payroll tax, state tax, and estimated S-Corp maintenance cost. The goal is a clearer CPA conversation, not a magic filing answer.
The S-Corp advantage comes from where payroll tax applies.
A default LLC usually pays self-employment tax on most business profit. An S-Corp separates reasonable salary from distributions. Payroll tax applies to salary, while distributions can avoid self-employment tax.
01
Start with profit
Enter expected annual net profit before owner salary.
02
Estimate salary and state tax
The tool models reasonable salary, payroll tax, state income tax, and yearly S-Corp overhead.
03
Compare the tradeoff
You see the LLC estimate beside the S-Corp estimate, plus a plain-language verdict.
When this calculator is useful
You already pay yourself
Enter your salary and compare how much of the profit would become distribution income.
You are planning CPA questions
Use the report to ask about reasonable salary, Form 2553 timing, payroll obligations, and state fees.
Planning guides for common S-Corp questions
These guides help small business owners understand the same assumptions used in the calculator, including profit, salary, distributions, state tax, and yearly S-Corp costs.
LLC tax calculator guide
Estimate the self-employment tax side before comparing S-Corp savings.
S-Corp tax savings calculator guide
Understand what creates savings and what can erase them.
Schedule C to S-Corp projection
Model the move from sole proprietor reporting to an S-Corp election.
S-Corp vs sole proprietorship
Compare the tax mechanics before changing how the business is taxed.
Review the assumptions before making a tax election.
The calculator is an educational estimate. It does not replace a CPA, tax attorney, or enrolled agent. It gives you a more useful starting point for that professional conversation.
- LLC estimate applies self-employment tax to 92.35% of net profit.
- S-Corp estimate applies payroll tax only to the salary portion.
- State income tax is estimated from the selected state data.
- A flat $2,000 annual S-Corp maintenance cost is included, with extra California franchise cost where relevant.