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Should you elect S-corp status?

Estimate the self-employment tax you could save by electing S-corporation treatment — after accounting for a reasonable salary and the real cost of running payroll. Built for California owners by a CPA.

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Estimated annual savings
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This is an estimate. Your real number depends on your facts.

The savings above assume the salary you entered is defensible. The actual figure depends on your reasonable-compensation analysis, your state filing posture, the cost of running compliant payroll, and how distributions interact with the rest of your return. That's the part a calculator can't see — and exactly what an S-corp analysis engagement covers.

  • A defensible reasonable-compensation position
  • California-specific franchise tax & payroll setup
  • Whether the election actually nets out ahead for you
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Estimate only. This calculator provides a simplified projection for educational purposes and is not tax advice, a recommendation, or an engagement for services. S-corporation suitability depends on facts this tool does not capture, including IRS reasonable-compensation requirements (IRC §§1366, 3121), California's 1.5% S-corp franchise tax and $800 minimum, and your complete tax picture. Figures use 2025 payroll-tax constants and will change with law. Consult a qualified CPA before acting. © Stillion Accounting & Consulting.