Sure Financial & Tax Services · Planning worksheet

S Corp vs LLC

What the S corporation election is actually worth on your numbers — after a reasonable salary, after the payroll you would have to run, and after what it does to your qualified business income deduction.

The business Schedule C ln 31 / 1120-S ln 21

Profit before any owner compensation — what the business earns before you decide how to pay yourself.

Net profit before owner pay Revenue less every business expense except your own wages
Reasonable salary you would pay yourself What someone else would charge to do your job. A facts test, not a percentage
Extra annual cost of the S corp Payroll service plus the 1120-S. Typically $1,200 to $2,500
Health, law, accounting, consulting, athletics, financial services, or any business whose asset is its people's reputation or skill
The rest of the return Form 1040

Brackets and the QBI thresholds run on your whole return, so the answer changes with what else is on it.

Other W-2 wages in the household A spouse's salary, or your own from another job
Other income Interest, dividends, rents
Side by side 2026 · Married filing jointly
  LLC, no election With S corp election Difference
This is a projection, not advice on your entity. Reasonable compensation is a facts-and-circumstances test and the figure you enter above is an assumption, not a conclusion. Rates, brackets, the Social Security wage base and the section 199A thresholds are the published 2026 figures. Confirm any election with your preparer before you file Form 2553.