Sole Prop vs. S-Corp Calculator

Your numbers

Net business profit for the year your Schedule C profit — revenue minus expenses, before any owner pay Reasonable salary you'd pay yourself

Most owners land at 30–50% of profit. It must reflect what the work is really worth.$48,000

Your marginal tax rate (%) pre-filled from your ScanMyTaxes report — sets the value of the QBI change Payroll + filing cost of running the S-corp (per year) payroll service, extra tax return (1120-S), bookkeeping — a rough all-in estimate

Would electing S-corp pay off?

Estimated net benefit per year

Where the crossover is

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Educational only — not tax, legal, or financial advice. ScanMyTaxes is a software tool, not a tax preparer or advisor, and does not prepare or file returns. Every figure here is an estimate based on the information you enter; results are not guaranteed and depend on your specific situation. The S-corp choice also changes your QBI deduction and your wage-based retirement room, and requires paying yourself a defensible reasonable salary — the most common thing the IRS challenges. Confirm the salary and the numbers with your own qualified tax professional before acting. Using this tool does not create a client relationship.