Free Tool

S-Corp vs. LLC Tax Calculator

See whether an S-Corp election would actually save you money. As an S-Corp owner, you pay FICA payroll taxes on your salary only. Distributions are not subject to FICA or self-employment tax. We run the real numbers including overhead and filing costs.

What is an S-Corp election?

An S-Corp election (Form 2553) is a tax classification filed with the IRS that changes how your business income is taxed. As an S-Corp, you pay yourself a W-2 salary subject to FICA payroll taxes, and take remaining profit as a distribution that is not subject to FICA or self-employment tax. The election does not change your legal entity structure.

Revenue minus business expenses, before owner pay
What you would pay an employee to do what you do
Helps estimate your tax bracket more accurately

Why does the salary matter? With an S-Corp, you pay yourself a salary and take remaining profit as a distribution. The salary is subject to FICA payroll taxes. The remaining profit taken as a distribution avoids FICA entirely. The IRS requires this salary to be “reasonable” for your role and industry. Setting it artificially low is a common audit trigger.

Payroll software + extra accounting + separate business return. Mid is most common.
This calculator uses simplified 2025 federal tax brackets and the standard deduction. It does not account for state income taxes, QBI deductions, credits, itemized deductions, or changes in your situation over time. S-Corp overhead costs are estimates and vary by provider. This is not tax advice. For a recommendation specific to your situation, schedule a free consultation.

Want us to run the actual numbers?

Each situation is different. We will tell you whether the S-Corp makes sense for you and handle the transition if it makes sense.

Schedule a Free Consultation