S corporation break-even comparison
Compare a simplified sole-proprietor model with an S corporation wage, payroll, state-tax, retirement-contribution and administration assumptions.
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Results update as you change the inputs.
Modeled sole-proprietor cost minus S corporation cost$8,954
- Modeled sole-proprietor self-employment tax
- $21,194
- Modeled S corporation payroll tax
- $12,240
- Modeled state/local tax on remaining profit
- $0
- Employer retirement contribution
- $0
- Added administration cost
- $0
- Remaining profit after wage
- $70,000
Directional comparison only—not an entity recommendation. Reasonable compensation, QBI, owner benefits, state conformity, basis, legal protection and plan limits can change the result.
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Bring the assumptions, your records and the result to a tax professional before acting on a material tax or retirement decision.