Taxes
S-Corp Salary vs Distribution Estimator
Compare a reasonable W-2 salary plus distributions against paying yourself 100% as self-employment income.
S-Corp Salary vs Distribution Estimator
If your business profits roughly $60K+ per year, an S-Corp election may reduce self-employment tax. This is a directional estimate, not a recommendation — reasonable comp rules apply.
Your estimate
Estimated annual savings vs Schedule C
$10,484
Schedule C / SE path payroll-style tax
$21,194
S-Corp path payroll tax on salary
$10,710
Distribution portion (no SE tax)
$80,000
Savings shown ignore payroll setup costs (~$1–3K/yr), reasonable comp risk, and state nuances. For most owners under ~$50K profit, an S-Corp is not worth it.
This is an estimate based on the information you entered. Your actual tax, savings, or cash-flow outcome may differ based on deductions, entity structure, timing, payroll setup, debt terms, investment assumptions, or other factors.
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