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Tax

S-Corp Election + Reasonable Salary

Slash self-employment tax on profits above ~$50K.

Overview

An S-corp pays you a 'reasonable' W-2 salary; remaining profit distributes free of the 15.3% SE tax. Sweet spot: $80K–$500K net profit.

Best fit
Solo consultantsAgency ownersFreelancers > $60K profit
Estimated impact
$5K–$25K+/yr SE tax savings

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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