THE ENTITY QUESTION
Does an S-corp
add up for you?
Compare employment taxes and admin costs before making the election.
The election comes with a salary.
An LLC is a legal structure; S-corp is a tax election. This compares a single-owner LLC taxed on Schedule C with S-corp treatment. It assumes no other wages and fixed reasonable owner pay, not a salary chosen to maximize savings.
This is an employment-tax estimate, not total tax savings. Income tax, QBI, unemployment taxes, Additional Medicare Tax, NIIT, retirement effects and state entity taxes are excluded. State minimum taxes, fees and election rules can erase federal savings. Payroll deadlines and bookkeeping add real work. Multi-owner, multi-state and employee-benefit situations require individual review.
IRS self-employment tax guidance · SSA wage bases