Free Tax Calculator

How Much Could Your Schedule C Clients Save with an S-Corp?

Enter your client's net business profit below to see a federal screening estimate of current self-employment tax and potential savings with an S-Corp review.

Client's Annual Net Profit
$
$20k$500k
From Schedule C line 31, net profit after expenses
Federal screen
Estimated annual savings
Federal screening estimate only
$0
per year in estimated SE tax reduction
SE tax today (sole prop) N/A
Modeled salary assumption N/A
Payroll taxes on salary (FICA) N/A
Assumed annual S-Corp admin cost N/A
Modeled net annual savings N/A
Screening threshold around: ~$45k

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What is an S-Corp?

A tax election, not a separate business type. It can shift some profit into salary and owner distributions, but the result depends on compliance and a reasonable compensation review.

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Where the savings come from

As a sole prop, 100% of profit is subject to federal self-employment tax mechanics. With an S-Corp, the modeled salary is still taxed, and remaining profit may be treated differently depending on compensation and compliance.

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When it makes sense

S-Corps cost money to run: payroll service, extra accounting, filing fees. Many firms start evaluating S-Corp treatment once profit is consistently in the mid-five figures, but the right threshold depends on salary, state fees, and admin costs.

Federal screening estimate only, based on 2024 SE tax mechanics. State taxes, income tax changes, and individual circumstances are not modeled. This is not tax advice, and it is not an IRS-approved salary formula. Consult a qualified tax professional before making any business structure decisions.

S-Corp calculator FAQ

Is this S-Corp calculator tax advice?

No. The calculator is a federal screening estimate based on simplified self-employment tax mechanics. It does not model state taxes, income tax changes, reasonable compensation support, or a client's full facts.

Who is this calculator for?

It is built for tax professionals who want a quick way to screen Schedule C clients before deciding whether an S-Corp review is worth discussing.

Does Conecta prepare or file tax returns?

No. Conecta is bilingual CRM and tax office management software. It helps tax offices manage clients, documents, messages, appointments, signatures, and follow-up, but it does not prepare or file tax returns.