Should I elect S-Corp status — and how much would I save?
This is the most financially impactful decision most freelancers face. The calculator shows you the exact dollar amount — including all compliance costs.
Am I leaving retirement contribution room on the table?
Most self-employed people default to a SEP IRA and never realize a Solo 401(k) could let them save $20,000+ more per year at the same income. See your exact numbers.
An LLC is a legal business structure that protects your personal assets. An S-Corp is a tax election you can apply to your LLC — it lets you split income into a salary (taxed) and distributions (not subject to self-employment tax). Most solopreneurs form an LLC first, then elect S-Corp treatment once income justifies the extra compliance cost.
LLC formation starts making sense around $25,000–$40,000 in annual self-employment income, depending on your liability risk and state. S-Corp election typically pays off at $70,000–$80,000+ in net income, when the tax savings exceed the annual compliance costs of $2,500–$4,500.
These tools are designed to help you understand your situation, make informed decisions, and arrive at your CPA meeting with better questions — not to replace professional advice. They use current 2026 tax rates and IRS guidelines, but your specific situation (state rules, deductions, prior year carryovers) requires a qualified tax professional to get exactly right.
At minimum, once a year — ideally before Q4 so you have time to act on any recommendations before year-end. Also revisit whenever your income changes significantly (±$20,000), you move to a different state, you add or lose major clients, or you're considering hiring help.