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LLC vs S-Corp. Decision framework + calculator.

Single-member LLCs are taxed as disregarded entities (income on Schedule C, full self-employment tax on net income). S-Corp election can save money by splitting income between W-2 salary (subject to payroll tax) and distributions (not subject to payroll tax). But S-Corp adds complexity: payroll, S-Corp tax return (Form 1120-S), reasonable salary requirement. We help you decide.

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How it works

How we handle LLC vs S-Corp, end-to-end.

Single-member LLCs are taxed as disregarded entities (income on Schedule C, full self-employment tax on net income).

1

Profit analysis

S-Corp savings come from reducing self-employment tax on distributions. Below $60K net profit, the savings often do not exceed the added overhead. Above $100K, savings can be significant.

2

Reasonable salary

S-Corp owner must take a reasonable W-2 salary for the work performed (subject to payroll tax). The portion taken as distribution is not subject to payroll tax. IRS reviews salary reasonableness; too-low salary triggers audit.

3

Overhead costs

S-Corp adds: payroll processing ($30-$80/month), Form 1120-S preparation ($500-$1,500/year), separate bookkeeping recommendations. Total: $3K-$5K/year typical.

4

Election + ongoing

Form 2553 filed within 75 days of formation (or 75 days after start of tax year for existing entities). Once elected, must run payroll and file 1120-S.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent llc vs s-corp pricing.

Government fees pass through at cost. No upsells.

Election + setup

$499
Form 2553 + payroll setup.

S-Corp election (Form 2553), payroll provider intro (Gusto, ADP, QuickBooks Payroll), salary calculation guidance. For existing LLCs electing S-Corp.

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Annual S-Corp package

$1499
Form 1120-S + payroll annual.

Annual S-Corp tax return (Form 1120-S), payroll subscription, salary justification documentation. For active S-Corps wanting full-service annual coverage.

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FAQ

About the LLC vs S-Corp Comparison.

When does S-Corp election save money?
Generally when net profit exceeds $60K-$100K and the owner actively works in the business. The savings come from reducing self-employment tax on the distribution portion of income. Below $60K, overhead usually exceeds savings.
What is reasonable salary?
Salary that a comparable employee would earn for the same work. IRS rule of thumb: 40-60% of profit for active owners. Industry-specific data (BLS, salary surveys) supports defense. Document the calculation. Too-low salary triggers IRS audit.
Can I S-Corp my single-member LLC?
Yes. File Form 2553 to elect S-Corp tax treatment. Under shortcut rules, LLC files only Form 2553 (no separate Form 8832 required). State filing usually unaffected; only federal tax treatment changes.
What is the overhead cost?
Payroll processing ($30-$80/month, $360-$960/year), Form 1120-S preparation ($500-$1,500/year), recommended bookkeeping for clean payroll/distribution tracking. Total: $3K-$5K/year typical.
Does S-Corp affect QBI?
Yes. The distribution portion of S-Corp income may reduce the QBI deduction (Section 199A). For SSTBs (specified service trades like law, accounting, consulting) above income thresholds, S-Corp helps because SSTBs lose 199A. For non-SSTBs, complex interaction; we model.
What if I miss the 75-day window?
Late election possible via Rev. Proc. 2013-30 with reasonable cause. Available within 3 years 75 days of intended effective date. We handle late elections ($249 additional).
Why File.Business

Premium compliance, no service-fee markup.

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Most providers go quiet after checkout. We auto-track every annual report, registered agent renewal, and license deadline across your entities. The Business OS dashboard keeps your compliance score visible year-round.

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