Utah S-Corp Election Savings Calculator

File Form 2553 with the IRS for your LLC or corporation to be taxed as an S-corp. This is a tax election on top of your existing legal entity, not a new type of business structure by itself.

There's no fixed IRS formula — it's generally what you'd have to pay someone else to do your job, given your time, skills, and industry norms. Salaries that look too low relative to profit and distributions are a well-known audit trigger.

No. Payroll processing and extra tax-prep costs can outweigh the self-employment tax savings at lower profit levels. It usually only pays off once net profit clears roughly $60,000-$80,000, and the exact breakeven point depends on your specific salary and costs — which is exactly what this calculator checks.

Practically, yes. You need to run real payroll — with tax withholding, quarterly payroll filings, and a W-2 at year-end — even if you're the only employee.

It can. Wages you pay yourself are excluded from qualified business income, so only the distribution portion qualifies for the 20% QBI deduction — this calculator already accounts for that.