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S-corp savings calculator

Estimates the payroll-tax difference between staying a sole proprietor and electing S-corp status with a reasonable salary — net of the compliance costs the election adds. Companion to our S-corp election guide and when NOT to elect.

SE tax as sole proprietor
Payroll tax on S-corp salary
Added compliance costs
Estimated annual savings

Why no state income tax dropdown here: most states tax S-corp salary and distributions the same, so ordinary state income tax largely cancels out of this comparison. What matters is entity-level taxes on the S-corp itself — modeled above for the states where they bite.

Educational estimate only — simplified assumptions, not tax advice, and not a substitute for a calculation on your actual return. Limits and rates change annually.

Above breakeven?

This is the rough cut — the real analysis adds QBI, retirement coordination, and your state facts. Thirty minutes gets you the actual number.

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