See how electing S-Corp status could reduce your self-employment taxes by splitting income between a reasonable salary and owner distributions.
Your business
$
$
$
You'll save approx.
$0
/year after S-Corp costs
5-year projection
$0
cumulative savings
10-year projection
$0
cumulative savings
Breakdown
Net income for distributions$0
Social Security tax savings$0
Medicare tax savings$0
Additional S-Corp cost−$2,000
Total$0
S-Corp election may not benefit you yet.
Based on your inputs, the estimated SE tax savings don't exceed the cost of maintaining an S-Corp (~$2,000/yr). This is common when profit is below ~$40,000 or when your salary is close to total profit. Consider revisiting as your business income grows.
Boring stuff (disclaimer): This calculator is provided by Moonshot Collective for general informational purposes only and does not constitute tax, legal, or financial advice. Results are illustrative estimates based on 2026 tax rates: 12.4% Social Security on the first $176,100 of net earnings, 2.9% Medicare on all net earnings, 0.9% Additional Medicare Tax above income thresholds, and 0.6% FUTA on the first $7,000 of salary. The sole proprietor scenario accounts for the half-SE-tax deduction. State and QBI impacts are not included. Actual savings will vary based on your specific income, deductions, business structure, state rules, filing status, and other factors unique to your situation. Always consult a qualified tax professional before making any tax or business structure decisions.