LLC vs S - Corp Savings
Objective
In this scenario we take a business making 100k after expenses and analyze S-Corp savings
Analysis
| Data | LLC | S-Corp |
| Net Profit | $100,000 | $100,000 ($50k Salary) |
| SS Taxes | $12,400 | $6,200 |
| Medicare Tax | $2,800 | $1,400 |
| Total SE Tax | $15,300 | $7,650 |
| Dividends | $0 | $0 |
| Annual SE Saving | $0 | $7,650/yr |
Conclusion
Forming an S-Corp results in ~7.6% savings for a $100k Net Income company. Clearbooks CPA can help you not only set up an S-Corp but also provide the ongoing accounting service and guidance needed to help your business scale efficiently.
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