S-Corp Planning

If you’re a small business owner, we guide you through the tax planning. If you’re a tax professional, buy our calculator to help your clients.

Business Evaluation

Tax Pro Calculator

Should you be an S-Corp?

It’s the most common tax question small business owners ask, and the most commonly botched. Income level alone doesn’t answer it.

For business owners

Get a real evaluation. You fill out a detailed survey, we run your actual numbers, and you get a written answer with a defensible salary figure, not a wild guess.

S-Corp savings evaluation
Personal Savings range
Reasonable compensation study

See Evaluation Packages

For tax professionals

Get the calculator we use. Compare Schedule C, S-Corp, and C-Corp with QBI, tax credits, and the present value of lost Social Security benefits built in.

Dynamic Excel Sheet
Advanced Tax Calculations using Professional Inputs
1 Year of Updates Included

Get Pro Version

Powerful Tools Tax Planning Calculator
for S-Corp & C-Corp

Everything you need to provide accurate entity tax planning services to your clients with
confidence and efficiency.

SE Tax Savings

Compare savings for business owners, for S Corp versus Schedule C versus C Corp with detailed calculations.

QBI Calculations

Comprehensive Qualified Business Income deduction calculations for accurate tax planning.

Excel Sheets

Microsoft Excel Sheets format for maximum flexibility.

Social Security Benefits

Calculate the Present Value of Social Security Benefits for comprehensive retirement planning.

Professional Grade

Built specifically for tax professionals with advanced features and accurate projections.

Time Saving

Streamline your tax planning process and serve more clients with automated calculations.

Checkout our Tax Planning Calculator

See It In Action

Watch our comprehensive demo video to understand how the Tax Planning Calculator for S-Corp & C-Corp | TaxFare
can help you advise client on complicated entity choices.

by: Jim Gerner EA

Tax Calculator Introduction

Frequently Asked Questions

Find answers to commonly asked questions about our products and services.

What am I purchasing?

A dynamic Excel spreadsheet that calculates earnings and tax savings for Schedule C business owners, S-Corps, and C-Corps. It helps you decide which entity type may be best for your situation.

Why doesn’t it match other similar spreadsheets?

Many other tools overlook key factors. For example, they may ignore that S-Corp owners can write off part of their payroll taxes. Our calculator also includes advanced features that estimate the present value of the Social Security benefits you may lose by paying less in self-employment taxes.

Why calculate the present value of Social Security, and what if Social Security isn’t around? Can’t I just invest the money at 10%?

While Social Security could change in the future, it remains a politically sensitive topic. It is more likely that taxes will increase than that benefits will disappear entirely. Some prefer to invest their Social Security savings instead, but the calculator allows you to set a custom discount rate if you’d like to assume a higher return. Keep in mind that the discount rate assumes a risk-free investment, and most 10% annual returns involve moderate to high risk.

How do I use the spreadsheet?

Enter your business income in the Business Income box and your reasonable compensation amount in the RC $ Override box. Results will display automatically in the left columns. Most data entry happens on the right, and results appear on the left. More detailed guidance is available in our video tutorials.

What’s the best way to use the spreadsheet?

Gather your net income from your Schedule C or your projected income for the year. Determine a reasonable compensation amount. Do not rely on our estimates alone. Include additional costs of becoming an S-Corp, such as payroll expenses, retirement contributions, and health insurance. You should also account for other W-2 income, including your spouse’s if applicable. Once all numbers are entered, review the results to see if becoming an S-Corp makes financial sense for you.

How should I calculate reasonable compensation (RC)?

The most accurate method is a reasonable compensation study. At Taxfare.com, we offer a full RC study with our S-Corp analysis package. This study uses the “many hats” approach, assigning different pay levels to your various business roles. It helps ensure you aren’t overpaying yourself while maximizing S-Corp savings.

Why does SEHI matter when deciding on an S-Corp?

SEHI, or self-employed health insurance, can be included in your RC package. If you purchase your own health insurance (not through a spouse or job), you can run it through your S-Corp. This deduction reduces both your taxable income and your Social Security and Medicare taxes.

My tax professional told me to choose an S-Corp because I made X amount of money. Why might that be wrong?

Income level alone shouldn’t determine your entity choice. Many accountants overlook factors such as the loss of future Social Security benefits, inconsistent income, and the costs of switching entities. This decision should consider your entire financial situation, not just tax savings.

What if my scenario can’t be computed?

The calculator provides estimates for tax savings in small business situations. It may not handle complex cases, such as partnerships or unique income structures. For those, we recommend professional tax advice.

What about state taxes?

State taxes vary widely and must be calculated separately. You can enter your own formula in the state tax override box, but our calculator doesn’t include state-specific computations.

What are you working on next?

We recently added modules for tax credits and integrated calculations for the new OBBB (One Big Beautiful Bill) Act. We’re also developing dynamic reports to help you see where you stand within phase-out ranges for credits and deductions.

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S-Corp Planning

Should you be an S-Corp?