Calculadora LLC × S-Corp (EUA, 2026)

Roughly when net profit clears $60,000-$75,000 with a stable trajectory. Below that, the $2,000-$4,500 of annual admin costs (payroll service, Form 1120-S preparation, additional bookkeeping, state franchise tax) exceeds the SE tax savings. Above $80k-$100k profit, S-Corp almost always wins on tax math for non-SSTB professions in low-tax states. For SSTBs (consulting, law, medicine, accounting, financial services) above the QBI single threshold of $201,775, the advantage narrows but doesn't disappear. California, New York, and NYC residents need to factor state-specific extras that shift the break-even up.

The IRS standard is what you'd pay an employee to do the same work. Court cases (Watson v. Commissioner 2010, Glass Blocks 2013) have settled around 30-40% of net profit for service businesses as a defensible floor. Going below 30% is a major audit flag. Document with Bureau of Labor Statistics Occupational Employment Survey data, Robert Half salary guides, or industry-specific salary reports. Keep records of comparable W-2 salaries for your profession in your metro area. The auto-optimizer in this calculator enforces a 30% floor on the assumption you'll defend it; if you have a lower defensible salary (e.g., very part-time work for the entity), use manual mode and document the basis.

For calendar-year filers, S-Corp election must be filed within 2 months and 15 days of the start of the tax year you want it to apply — March 15. In 2026 March 15 falls on a Sunday, pushing the deadline to Monday March 16, 2026. Miss it and your current year stays sole-prop; the next valid election applies to the following tax year. Late election relief under Rev. Proc. 2013-30 is available for up to 3 years and 75 days late, but requires reasonable cause and a clean filing history. The calculator shows live deadline countdown based on today's date.

Yes, but with restrictions. To revoke S-Corp status, file a statement of revocation with the IRS Service Center where you file Form 1120-S, signed by shareholders holding more than half the outstanding stock. Effective the first day of the next tax year if filed by the 15th day of the third month of that year (March 15). After revocation, the IRS does not allow re-electing S-Corp for 5 years — so think hard before revoking. If your business profile changes structurally (much lower profit, state move, mix shift), revocation can be the right move; for one-time low years, it usually isn't.

Massively, especially for high-income non-SSTB filers. Below the QBI threshold ($201,775 single / $403,500 MFJ in 2026), QBI is automatic — 20% off qualified income, both LLC and S-Corp paths capture it equally. Above the threshold, two limits apply: (1) SSTBs phase out across $75k single / $150k MFJ and disappear at the upper bound; (2) non-SSTBs face a W-2 wage limit (50% of W-2 wages paid by the business). **Sole props pay zero W-2 wages, so non-SSTB sole props above the QBI phase-out end get ZERO QBI deduction.** S-Corp salary creates the W-2 wage base that unlocks QBI for high earners. At $400k profit, this single rule alone can be worth $15k-$25k per year — the QBI swing often dwarfs the pure SE tax savings.

Because New York City ignores the federal S-Corp election and taxes the entity at the city level as a C-Corp under General Corporation Tax (8.85%). Federal and NY state respect the S-Corp election; NYC does not. For a Manhattan or Brooklyn S-Corp owner, the federal-level savings get partially or fully offset by NYC GCT on the entity's income. The calculator includes a warning when state=NY + city=NYC and shows NYC GCT in the S-Corp breakdown. For NYC residents at moderate profit ($150k-$200k), LLC default is often competitive with S-Corp after factoring NYC tax — talk to a CPA familiar with NYC business taxation.

California charges two layers: (1) $800 annual minimum LLC franchise tax, owed even at $0 profit, payable to the Franchise Tax Board; (2) 1.5% franchise tax on S-Corp net income (which sits on top of the personal income tax on K-1 distributions). For low-profit California S-Corps, the $800 minimum can wipe out the SE tax savings entirely — the break-even shifts up by ~$5k-$8k of profit compared to no-tax states. California also has PTET (Pass-Through Entity Tax) election that can offset the federal SALT cap; talk to a California CPA about whether to elect.

S-Corp owner-employees can contribute to a Solo 401(k) or SEP-IRA based on W-2 wages (the salary), not total business income. This means high-salary, low-distribution scenarios maximize retirement contributions, while low-salary, high-distribution scenarios minimize them — direct tension with the SE-tax-minimization goal. Sole props can contribute based on net SE earnings minus half SE tax, which usually allows higher contributions at the same income level. If maximizing retirement is a priority, factor that against the S-Corp savings. The 2026 Solo 401(k) cap is $72,000 employer contribution + $23,500 employee deferral.

Not if your LLC already has one. Form 2553 is filed using the existing EIN — you're electing tax treatment, not creating a new entity. If you're a sole proprietor without an LLC and want S-Corp, you first need to form an LLC (or corporation) and get an EIN, then file Form 2553. Most people use a single-member LLC + S-Corp election rather than incorporating directly. State-level requirements vary: New York requires a separate state-level S-Corp election (Form CT-6); most states automatically respect the federal election.

Two paths. Path 1: Plan for next year. File Form 2553 in the late-summer or fall window (between August and December), with effective date January 1 of the next tax year. Clean and well-documented. Path 2: Late election relief under Rev. Proc. 2013-30. Available if you intended to elect S-Corp from the start, can show reasonable cause for missing the deadline (illness, professional malpractice, etc.), have filed all returns consistent with S-Corp treatment, and file the late election within 3 years and 75 days of the intended effective date. Requires Form 2553 with 'FILED PURSUANT TO REV. PROC. 2013-30' written across the top. Most tax pros recommend Path 1 unless you have a strong reasonable cause case.