How much would S-Corp election save you in taxes?
Enter your business profit and a reasonable owner salary. We calculate the self-employment tax you would save by electing S-Corp status (IRS Form 2553) vs staying on default LLC pass-through taxation.
Three things that make S-Corp savings calculator useful in the real world.
Not a calculator that ships you to a paywall after the result.
Plug in your real numbers
Net income, state, and filing status. We compute the SE-tax delta against staying default LLC.
See the actual breakeven
We surface the income point where the payroll cost flips the math in favor of S-Corp.
File when you are ready
One click to Form 2553 with the IRS. Penalty-free guarantee covers the deadline.
Your numbers
Where the savings come from.
By default, an LLC owner pays self-employment tax (15.3% combined Social Security + Medicare) on the entire net profit. At $120,000 net profit, that is about $16,948 in SE tax alone (the 15.3% applies up to the Social Security wage base of $168,600 for 2026).
With an S-Corp election (filed via IRS Form 2553), the owner is treated as both shareholder and employee. The owner pays themselves a "reasonable salary" via payroll, which is subject to payroll tax (15.3% combined employer + employee FICA). The remaining profit is taken as a distribution, which is NOT subject to self-employment tax.
At $120,000 net profit with a $60,000 salary: payroll tax applies to $60,000 (around $9,180), and the remaining $60,000 distribution is exempt from SE tax. Savings: about $7,768 per year.
Important caveat: the IRS requires the salary to be "reasonable" for the work performed. Setting an unreasonably low salary to maximize distributions is a known audit trigger. Most CPAs recommend 40 to 60 percent of net profit as a defensible salary, depending on the industry and the owner's actual work.
The thresholds where it is worth it.
Below $50-60k net profit, S-Corp election usually is not worth the payroll complexity (~$40/mo + year-end filings). Between $60-80k, the math starts working. Above $80k, the savings typically justify the election decisively. Above $168,600 (the SS wage base), savings cap on the Social Security portion but Medicare savings continue.
Common questions.
How accurate is this calculator?
What is "reasonable compensation"?
Do I have to be an LLC first?
When is the deadline to file Form 2553?
What does it actually cost to be an S-Corp?
Can I undo an S-Corp election?
What states do not recognize federal S-Corp election?
What if I have multiple shareholders?
Make the savings real.
We file IRS Form 2553 for $99, or include it on the Growth plan. Setup takes about 15 minutes; the election applies for the current tax year if filed before March 15.
How we deliver, end-to-end.
Four-step path from request to confirmation. State and IRS turnaround varies; our steps run in parallel where possible to compress the timeline.
Intake + scope
You tell us what you need through a short intake form (or a call for complex matters). We confirm scope, surface any gating issues (deadlines, missing documents, entity status), and quote any state fees that pass through at cost.
Prepare + verify
Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.
File with the authority
We submit directly to the state Secretary of State, FinCEN, IRS, USPTO, or whichever authority your filing requires. We pay state fees at cost and track the submission identifier in your account.
Confirmation + vault
Stamped certificate, IRS notice, or filing receipt arrives in your SOC 2 encrypted document vault the moment we receive it. Next filing deadline auto-added to your compliance calendar where applicable.
Built on the same infrastructure used by 220,000+ businesses.
SOC 2 Type II audited
Independent annual security audit covering access control, change management, incident response, and data handling. Current report on request.
All 51 US jurisdictions
Every state plus DC plus Puerto Rico - direct filings, not third-party reseller. We hold registered-agent qualifications in every state we operate.
Deadline guarantee
If we miss a filing deadline on a service you pay us to manage, we pay the state penalty. Specific to each plan and the filings it includes.
4.9 from 8,200+ verified reviews
Independently verified by Trustpilot + Google + our own NPS infrastructure. Customer success team within reach by email, chat, or phone.
60-day money-back promise
Change your mind in the first 60 days and we refund our service fee in full. State filing fees pass through at cost and are non-refundable once paid to the state.
E&O insured
Errors and omissions coverage protects you from service errors. Carrier and certificate available on request for enterprise clients.