S Corporation Election Calculator
As a self-employed individual, you may be paying more in self-employment taxes than necessary. Electing S corporation treatment can potentially reduce your tax burden by allowing you to split your income between salary and distributions.
This calculator helps you determine whether an S corporation election could benefit your specific situation. The primary savings come from avoiding self-employment tax on distributions, though there are additional costs to consider.
Your Results: Side-by-Side Comparison
Current Structure
(Sole Proprietor/LLC)
S Corporation
Structure
Important Considerations
Disclaimer: This calculator provides estimates for educational purposes only and should not be considered legal or tax advice. Every business situation is unique, and the actual tax implications of an S corporation election depend on numerous factors including state laws, business structure, and individual circumstances. Please consult with a qualified tax professional or attorney before making any decisions regarding your business structure.