S-Corp Information
S-Corp Tax Analysis
Enter your S-Corp information to see your tax analysis.
Tax breakdown will appear here.
Optimization strategies will appear here.
Business Entity Tax Comparison
S Corporation Tax Information
S-Corp Tax Benefits
Pass-Through Taxation: No corporate-level tax
SE Tax Savings: Only salary subject to payroll taxes
QBI Deduction: Up to 20% deduction on pass-through income
Flexibility: Distribute profits without additional payroll taxes
Reasonable Salary Requirements
IRS Requirement: Must pay reasonable compensation
Factors: Industry standards, duties, experience
Consequences: Penalties for unreasonably low salaries
Guidelines: 40-60% of net income is often reasonable
QBI Deduction Limits
Income Threshold: $191,950 (single), $383,900 (MFJ)
W-2 Wages Test: 50% of W-2 wages paid
Specified Service: Limited for certain professions
Maximum: 20% of qualified business income
S-Corp Requirements
Shareholders: Maximum 100 shareholders
Stock Classes: Only one class of stock
Ownership: No corporate or partnership owners
Tax Year: Must use calendar year (with exceptions)
Important Information
This calculator provides estimates for S-Corp tax planning purposes only. Actual tax obligations may vary based on specific circumstances, state laws, and complex federal regulations. S-Corp taxation involves many factors including reasonable salary requirements, QBI deduction limitations, and state-specific rules. The calculator uses simplified calculations and may not account for all tax situations, including multi-state operations, passive income rules, or built-in gains tax. Always consult with a qualified tax professional and business attorney for personalized advice regarding S-Corp elections and tax planning strategies.