S-Corp Tax Benefits Simulator (2024)
Is an S-Corp Right for Your Business?
Use these interactive tools to explore the key tax advantages of an S Corporation, from self-employment tax savings to pass-through loss deductions.
Self-Employment Tax Savings Calculator
One of the biggest S-Corp benefits is saving on self-employment (SE) taxes. See how paying a "reasonable salary" and taking the rest as distributions can lower your tax bill compared to a sole proprietorship.
Potential Annual SE Tax Savings
$0
Shareholder Loss Limitation Calculator
S-Corp losses can offset your other income, but only up to your tax basis (stock + debt). Calculate how much of a business loss you can actually deduct this year.
Deductible Loss This Year
$0
Suspended Loss (Carryforward)
$0
Other Key S-Corp Benefits
Pass-Through Taxation
The S-Corp itself pays no federal income tax, avoiding C-Corp "double taxation." Profits and losses are passed to shareholders to report on their personal returns.
QBI Deduction
Shareholders can generally deduct up to 20% of their Qualified Business Income (QBI) passed through from the S-Corp, further reducing their personal tax bill.
Eligibility Checklist
- ✓ Domestic Corporation
- ✓ Only one class of stock
- ✓ No more than 100 shareholders
- ✓ Shareholders are individuals, estates, or certain trusts
- ✓ No non-resident alien shareholders
