About This Calculator

The S-Corp Tax Savings Calculator is a free educational tool that lets self-employed individuals, freelancers, and small business owners compare their federal tax burden under two common structures: Sole Proprietorship / LLC and S-Corporation.

What It Does

• Computes self-employment (SE) tax vs. FICA tax on both paths
• Calculates the §199A QBI deduction under each structure, including phase-out and W-2 wage limitation mechanics
• Estimates federal income tax both ways using 2025 brackets and standard deduction
• Factors in annual S-corp compliance costs (payroll, CPA, state fees)
• Calculates your specific breakeven profit point — not a hardcoded rule of thumb
• Handles California's 1.5% S-corp franchise tax and flags other notable state variations

Who It's For

This tool is built for self-employed individuals, sole proprietors, and LLC owners who are approaching or above the profit levels where S-corp election typically makes sense — and want to understand the mechanics before talking to a CPA.

Important Limitations

This is an educational estimate, not tax or legal advice. It uses 2025 federal parameters and standard deduction only. It does not account for itemized deductions, capital gains, SSTB restrictions, state income taxes (except CA franchise tax), or your complete financial picture. Always consult a licensed CPA or tax attorney before making an entity election.

Built By

This tool is built and maintained by Officina Systems, a company building AI-powered operating tools for creator businesses. We publish free micro-tools in the financial and business space as educational resources.

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Questions? Contact us here or email hello@officinasystems.com.