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How much could you save with an S Corp?
Estimated savings
An S Corp election looks worth it
$10,867 a year
Self-employment tax you would stop paying, less payroll tax on your salary.
As a sole proprietor or LLC
Self-employment tax on 92.35% of profit
Social Security
$17,177
Medicare
$4,017
Self-employment tax
$21,194
As an S Corp
Payroll tax on your salary only
Reasonable salary
$67,500
Distribution
After employer payroll tax
$77,336
Payroll tax
$10,328
An estimate, not a tax return. This compares employment tax only: self-employment tax as a sole proprietor or LLC against payroll tax as an S Corp. It does not model federal or state income tax, the QBI deduction, unemployment tax, retirement contributions or credits, and it uses the single-filer threshold for the additional Medicare surtax.
This calculator is intended solely for illustrative purposes and may not accurately reflect your unique circumstances. Collective cannot guarantee the accuracy of estimates.