S-Corp Election Savings Calculator

Screen whether an S-corp election may be worth reviewing after reasonable compensation, payroll, bookkeeping, and NY and NJ complexity are considered.

Important: For educational and screening purposes only. These tools do not constitute legal, tax, accounting, or financial advice and do not create a CPA-client relationship. Review any results with a qualified professional before taking action.

Screening tool only. This does not recommend an election. S-corp status can create payroll, tax filing, bookkeeping, and legal complexity.

Business facts

Business location

Current entity type

Estimated annual net business profit before owner compensation

Estimated reasonable owner salary

Payroll tax rate assumption (%)

Self-employment tax rate assumption (%)

Estimated added annual compliance cost

Payroll provider

S-corp tax return

Bookkeeping cleanup

State filing costs

Advisory cost

Number of owners

Readiness questions

Owner works actively in business?

Business has employees?

Business has clean books?

Need retirement plan planning?

Regular owner draws/distributions?

When does an S-corp election make sense?

It may be worth reviewing when profit is high enough that potential payroll tax savings exceed added complexity and costs.

What is reasonable compensation?

It is the salary an owner-employee should receive for services performed. It depends on facts and should be reviewed professionally.

Does an S-corp always save taxes?

No. Added costs, salary, bookkeeping, retirement planning, and state/local treatment can change the result.

Do NY and NJ change the analysis?

They may. State and city treatment should be reviewed before acting.