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Free tools built by the CPA who prepares the returns. Each one lists the rules and figures it uses.

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Most used

S-Corp vs. Sole Proprietor ›1099 Estimated Tax Planner ›Withholding Checkup ›
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Models

Excel workbooks for reporting and tax analysis. Licensed per user or firm; you own your copy.

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What’s inside

21 tabs, 28,550 formulas (FRP) ›§1374 and LIFO recapture (C→S) ›Pre- and post-2025 §1202 rules ›
Rather have me run it?I can build the reporting package or run the analysis as an engagement.Send an inquiry
Services›S-corporations

S-corporation elections and entity setup

Electing S-corporation status can reduce self-employment tax, but it adds payroll, a separate return and California's franchise tax. I show you both sides with your numbers before you decide.

Send an inquiry Try the S-Corp vs. Sole Proprietor calculator
Form2553
Due2 mo. 15 days
CA tax1.5% · $800 min

Who this is for

Sole proprietors and single-member LLC owners whose profit has grown

New corporations and LLCs deciding how to be taxed

Owners who elected S status and aren't sure the setup is right

The analysis

Self-employment tax vs. payroll tax
SE tax under IRC §1401 compared with FICA on a reasonable salary, net of payroll and compliance costs.
IRC §1401
California cost
The 1.5% franchise tax on S-corporation net income, with the $800 minimum (R&TC §23802).
R&TC §23802
Reasonable compensation
A salary you can support with the work you do and market data, not a number picked to minimize tax.
Rev. Rul. 74-44
The effect on §199A
S-corporation wages reduce qualified business income, which can lower the §199A deduction.
IRC §199A
In order

If you go ahead

  1. File Form 2553, generally within 2 months and 15 days of the start of the tax year it's meant to cover (IRC §1362(b)). If that deadline has passed, I check whether late-election relief under Rev. Proc. 2013-30 applies.

  2. Set up payroll for owner wages. Payroll runs through a provider you manage yourself.

  3. Set up the books to track shareholder basis, distributions and accountable-plan reimbursements.

  4. Calendar the 1120-S, the 100S and the quarterly payroll filings.

Forming the entity is legal work. I coordinate with your attorney on the articles and bylaws, and I handle the tax election and the accounting side.

Questions

At what profit does an S election make sense?

There's no single number. It depends on the salary your role supports, payroll costs, California's franchise tax and your other income. The free S-Corp calculator gives a first estimate; I work through the details with you.

Can an LLC be taxed as an S-corporation?

Yes. An eligible LLC can elect S-corporation status on Form 2553. It is treated as having elected to be taxed as a corporation, so a separate Form 8832 isn't needed (Treas. Reg. §301.7701-3(c)(1)(v)(C)).

Calculator · BUS-01

S-Corp vs. Sole Proprietor

Estimates self-employment tax savings from an S election, after a reasonable salary and the cost of running payroll.Calculator · BUS-05

Entity Comparison

Sole proprietorship, S-corporation and C-corporation compared on the same profit, with optional California entity taxes. Excel model

C-Corp to S-Corp Conversion Analyzer

C-corporations weighing an S election, and the CPAs advising them

Thinking about an S election? Ask me.

Send a few sentences. If it fits, you get an engagement letter with the scope and fee, and the IRC §7216 consent forms. Documents go through the secure portal.

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