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$20k$500k
{{ salaryLabel }} · {{ salaryPctOfP }}% of profit
The IRS expects this to be reasonable for your work — set it too low and you invite an audit. Phase 01 shows how to land on a number you can defend.
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you keep
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Sole prop / LLC
self-employment tax
self-employment tax
S-corp election
payroll tax + upkeep
payroll tax + upkeep
Estimated annual savings
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≈ {{ fiveYrLabel }} kept over five years
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The honest part
An S-corp isn't free money. It means running payroll, an extra tax return, and paying yourself that defensible salary — costs we've already netted out of the number above (about {{ uLabel }}/yr assumed). Below a certain profit it isn't worth the hassle; above it, the savings compound every year. Knowing exactly where that line falls for you is what Phase 01 is for.
Self-employment / FICA rate15.3% (12.4% SS + 2.9% Medicare)
Social Security wage base (2026){{ wLabel }}
SE base adjustment92.35% of net profit
Assumed S-corp upkeep{{ uLabel }} / year
ScopeFederal only · income tax ≈ equal both ways
Like every Launch Confident tool, the volatile rates sit in one place you can verify. An estimate, not advice — your real result depends on your state, deductions, and the salary you can defend.