LLC to S-Corp Conversion Calculator
Electing S-Corp status trades self-employment tax for payroll tax on a smaller wage base — but it isn't free, and it isn't automatically a win. See the real net benefit after overhead costs and the long-run Social Security trade-off.
Your numbers
Every result updates instantly as you type.
What the S-Corp would pay you as payroll before the remaining profit passes through as a K-1 distribution.
S-Corp overhead costs
Advanced assumptions
Estimated Net Benefit of Electing S-Corp
$3,200/yr
Annual tax savings, net of the present value of Social Security benefits forfeited from one year of lower reported wages.
Annual tax savings
$5,018
Social Security Benefits Forfeited (PV)
-$1,818
Side-by-side breakdown
All figures are federal-only and assume this is your only income.
| Line item | LLC (Sched. C) | S-Corp |
|---|---|---|
| Net business income | $150,000 | $150,000 |
| Self-employment tax | $21,194 | — |
| Employee-side payroll tax (SS + Medicare) | — | $5,355 |
| Additional Medicare tax | $0 | $0 |
| Employer-side payroll tax | — | $5,397 |
| S-Corp overhead costs | — | $2,450 |
| QBI deduction | $24,661 | $14,431 |
| Taxable income | $98,642 | $111,622 |
| Federal income tax | $16,413 | $19,387 |
| Total federal tax + costs | $37,608 | $32,589 |
| Cash retained | $112,392 | $117,411 |
| Annual savings from S-Corp | $5,018 |
Want a precise number for your situation? Book a free consultation or try the full Tax Calculator.
How the Social Security figure is estimated
- Estimates the effect of just one year's lower Social Security wages, not a repeated annual reduction.
- Uses the 2026 benefit formula (90%/32%/15% of average indexed monthly earnings, bend points $1,286/$7,749) and assumes the marginal effect falls in the top 15% bracket, typical for someone earning enough to weigh this election.
- Assumes the resulting benefit reduction is received every year from your claiming age through your life expectancy, discounted to today's dollars at the rate you set.
- This is a present value, so it is naturally larger the closer your current age is to your claiming age — there's simply less time left to discount it, even though the size of the future benefit reduction itself doesn't depend on your current age.
- Estimate only, not tax, legal, or financial advice — talk to your CPA before electing S-Corp status.