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Would an S corp save you money?

A quick, simplified estimate. Read our S corp guide for the details behind it.

A salary that’s too low invites IRS scrutiny. Use what you’d pay someone else to do your job.

Self-employment tax as an LLC or sole proprietor
Payroll taxes on your salary as an S corp
Extra S corp costs
Estimated yearly savings

Simplified estimate: 15.3% self-employment tax on 92.35% of profit, compared with 15.3% payroll tax on salary. It leaves out income tax effects such as the qualified business income deduction and the deductible half of self-employment tax. Not tax advice.