Free estimate from Dan Marlow, CPA
S Corp Tax Savings Calculator
An S corp election can cut your self-employment tax, but only if the numbers work. Plug in your business profit and the salary you'd pay yourself, and you'll see a rough estimate of what the election could save in payroll taxes each year.
Your estimate shows here after you run the numbers.
What This Calculator Doesn't Count
It doesn't include state taxes, the qualified business income deduction, retirement contributions, or health insurance, and it assumes the salary you entered would hold up as reasonable compensation. Those can move the real number up or down, so treat this as a starting point, not a filing decision.
Common Questions
What's a reasonable salary?
The IRS expects an S corp owner who works in the business to pay themselves a reasonable salary for that work, based on what you'd pay someone else to do it. Set it too low and the savings you see here can disappear in an audit.
When doesn't an S corp make sense?
When your profit's low enough that payroll costs and the extra business return eat up the savings. If the calculator shows a small or negative number, that's usually your answer.
What happens after I run the numbers?
Bring them to Dan. Valor's retainer covers your business return and your personal 1040, so the S corp decision gets planned with your whole tax picture in view.
Want the Real Number?
Dan Marlow, CPA, runs this with your actual books and tells you whether the election's worth it for you.