Free Tax Tool
S-Corp Savings Calculator
See how much self-employment tax an S-Corp election could save your home service business — then talk with BlueSkies to see if it's the right move.
S-Corp Savings Calculator
Estimate the self-employment tax you could save by electing S-Corp status instead of operating as a sole proprietor or single-member LLC.
The IRS requires a “reasonable” salary for the work you do. The rest can be taken as distributions, which aren’t subject to self-employment tax.
SE tax as Sole Proprietor
$16,955
Payroll tax as S-Corp
$7,344
Estimates use 2025 federal Social Security and Medicare rates and cover self-employment tax only. They exclude state taxes, income tax, QBI, and the added cost of running payroll and filing an 1120-S. This is an estimate, not tax advice — talk with BlueSkies before electing.
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