See how much you can legally save on self-employment taxes (FICA) by electing S-Corporation status and splitting your revenue between salary and shareholder distributions.
| Tax Component | Standard LLC / Sole Prop | S-Corporation (janss.cpa) |
|---|---|---|
| Net Business Profit | $150,000 | $150,000 |
| Amount Subject to 15.3% FICA | $150,000 (100%) | $65,000 (Salary Only) |
| Self-Employment / FICA Tax | $22,950 | $9,945 |
| Your Annual Tax Savings | $0 | +$13,005 / year |
janss.cpa handles your entire S-Corp transition: Form 2553 election filing, defensible reasonable salary benchmarking, automated payroll setup, and corporate tax returns (Form 1120-S).
Book Free S-Corp ConsultationGenerally, once your business generates $70,000+ in consistent net profit, an S-Corp election yields substantial tax savings that easily outweigh the modest costs of corporate bookkeeping and annual return preparation.
In a standard LLC or sole proprietorship, 100% of profits are hit with the 15.3% self-employment tax. In an S-Corp, you only pay self-employment tax on your W-2 salary. The remainder is distributed as dividends, avoiding the 15.3% tax completely.
The IRS requires S-Corp shareholder-employees to pay themselves a fair market salary based on industry data. janss.cpa calculates your defensible salary range to protect against IRS audit risk while optimizing your tax shelter.
Yes. You do not need to dissolve or re-incorporate. We file IRS Form 2553 to elect S-Corp tax treatment for your existing Texas LLC with zero disruption to your bank accounts or contracts.
Licensed CPA Firm #C12114. Regulated under Texas administrative and certified public accounting standards.
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