Once you’re profitable, staying a sole proprietor can cost you thousands in self-employment tax. But S-corp only pays off past a certain point, and getting “reasonable salary” wrong is the #1 audit trigger. This interactive tool, built by a licensed CPA, runs your numbers both ways and shows you the real answer.

What it calculates: your SE tax as a sole prop vs. an S-corp, a reasonable-salary estimate and the payroll taxes owed on it, your net annual tax savings from electing S-corp, the break-even profit where S-corp starts to pay off, and the added costs (payroll, a separate return) weighed against the savings.

Perfect for profitable LLCs, freelancers, and 1099 contractors wondering whether it’s finally time to elect S-corp, without paying a CPA $300 just to run the numbers.

Download, open in any browser (desktop, tablet, or phone, no software or login), enter your profit, and see whether S-corp saves you money.

Built by Sophia Sinclair Miller, CPA. Estimates 2026 federal tax for planning only; reasonable salary is a facts-and-circumstances determination, confirm yours with a professional before electing. Not tax advice; no CPA-client relationship created.