LLC owners earning over $50K are leaving $5,000–$20,000+ per year on the table. See your exact savings and get a complete S-Corp Launch Kit — pre-filled Form 2553, first-year checklist, payroll guide & more — in 30 seconds. No signup required.
Enter your business income to see exactly how much you'd save with an S-Corp election.
The IRS allows LLC owners to elect S-Corp tax treatment — splitting income between a salary (taxed) and distributions (not subject to self-employment tax).
As a sole proprietor or single-member LLC, you pay 15.3% self-employment tax on your entire net income — on top of income tax. That's Social Security (12.4%) + Medicare (2.9%).
With S-Corp election, you split income into a "reasonable salary" (subject to payroll tax) and distributions (not subject to payroll tax). Only the salary portion gets taxed at 15.3%.
On $100K net income, a typical owner pays themselves ~$50K salary and takes ~$50K as distributions — saving ~$7,000+ per year in self-employment tax.
Generally, S-Corp election starts saving you money when your net business income exceeds $40,000–$50,000 per year. Below that, the overhead costs (payroll service, additional tax prep) tend to offset the tax savings. The higher your income, the more you save.
The IRS requires S-Corp owner-employees to pay themselves a salary that's comparable to what similar businesses pay for similar services. You can't set your salary to $0 and take everything as distributions. Our calculator determines the optimal balance that maximizes savings while staying within IRS guidelines.
You file Form 2553 with the IRS. It must be filed within 75 days of the start of the tax year you want it to take effect, or at any time during the preceding tax year. Our Election Package includes a pre-filled Form 2553 tailored to your business, ready for your signature, plus step-by-step guidance for filing. Note: your LLC structure stays the same — you're only changing how the IRS taxes it.
Your personalized package includes 7 pages across two downloads: (1) a detailed tax savings analysis comparing your current burden vs. S-Corp, (2) a reasonable compensation report supporting your salary choice, (3) a quarterly estimated tax schedule with due dates, (4) a Form 2553 filing guide with your exact state-specific IRS fax number and mailing address, (5) a first-year S-Corp checklist so you know exactly what to do after filing, (6) a payroll setup and provider comparison guide with pricing, and (7) a separate, auto-filled IRS Form 2553 ready for your signature and fax. All documents are CPA-ready.
Our calculator uses the current IRS tax brackets, Social Security wage base ($176,100 for 2025), and self-employment tax rates. Results are estimates based on simplified assumptions and should be used for planning purposes. We always recommend consulting with a tax professional before making an S-Corp election. That said, these calculations follow the same math your CPA uses.
S-Corp has some additional requirements: (1) you must run payroll for yourself (~$50/mo), (2) you'll file Form 1120-S in addition to your personal return (~$500 extra in CPA fees), (3) some states charge additional S-Corp fees or don't recognize S-Corp status. Our calculator accounts for these overhead costs in the savings estimate.