Save on taxes, form your S-Corp today

Easy S-Corp setup
Free tax pro consultation
Confidently file personal & business taxes

See your S-Corp tax savings

S-Corp formation could save you thousands in self-employment taxes.

Your details

This is your estimated annual business profit after expenses, before any salary or taxes. If you're a freelancer or sole proprietor, it’s the amount you’d report as net income on your tax return.

Enter a fair market salary you’d pay yourself for the work you do. The IRS requires S-Corp owners to take a ‘reasonable’ salary before taking distributions.

This is the portion of your income paid to you as an S-Corp distribution—it's not subject to self-employment tax. Total income = Salary + Distribution.

Estimated Tax Savings

$15,300
Explanation:
As a sole proprietor, all of your income $200,000 is subject to the 15.3% self employment tax, which would cost you about $30,600
As an S Corporation, you pay yourself a $100,000 salary which is still taxed at 15.3% $15,300
The rest $100,000 is considered a distribution, and not subject to self-employment tax, saving you $15,300

Set up an S-Corp with Keeper

Form your S-Corp today or work with a dedicated accountant to figure out if an S-Corp is the right move for you.

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Stay compliant. Stress-free. Year-round.

Everything you need to start and run your S-Corp in one place.
Automatic Expense Tracking
Securely sync your cards to Keeper. We’ll automatically track, categorize, and flag tax-deductible expenses, so you save more on taxes.
Tax Pros On Standby
Your dedicated tax pro is here to work 1-1 with you. We'll guide you step-by-step through business formation, compliance, tax filing, and more.
Quarterly Tax Support
Never miss a quarterly payment deadline again. We'll get your estimated payments squared away so you have one less thing to worry about.
End-to-End Tax Prep & Filing
With deductions tracked and quarterly taxes handled, we’ll prep and file your personal and S‑Corp returns for you. Expert-reviewed and 100% accurate.
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Meet some of our tax pros

Our team of licensed CPAs and EAs are ready to work with you 1-on-1.
Justin J.
IRS Enrolled Agent
18+ years, tax prep & planning
Tax attorney, MBA
Sabrina W.
Licensed CPA
15+ years, tax prep & planning
MAcc
David B.
IRS Enrolled Agent
30+ years, tax prep & planning
MSc in Taxation, MBA
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Competitive, flexible pricing

The best part? Keeper is a tax deduction. Deduct it automatically when you file your taxes with us!
Premium Plan
Business formation, expense tracking, and tax prep & filing all done for you

$399/yr

billed annually
  • S-Corp formation

  • Automatic expense tracking

  • Quarterly tax support (Form 1040-ES)

  • File individual federal & state returns

  • Audit protection & resolution

  • Expert tax advice year-round

  • 1:1 call with an accountant every quarter

Choose Premium Plan
Expert Plan
Your dedicated S-Corp team helps you every step of the way from formation to filing

$1,149/yr

billed annually
  • Everything in Premium Plan

  • Quarterly tax support (Form 941)

  • S-Corp tax filing

  • Annual tax strategy session with a dedicated accountant

  • Year end book review and close

Choose Expert Plan
Best Value

Frequently asked questions

What is an S-Corp, and how is it different from an LLC?
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An S-Corp is a tax status you can choose with the IRS. It’s not a type of business like an LLC. LLCs give you legal protection. But an S-Corp helps you save on taxes once you're earning real profit.

Here’s how:

Instead of paying 15.3% self-employment tax on all your income, an S-Corp lets you split it:

  • Part as a salary (taxed normally)
  • The rest as profit (no self-employment tax)

That split alone can save you thousands of dollars!

Do I need an LLC before forming an S-Corp?
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Nope! You can form a corporation and elect S-Corp status directly. But here’s what most solopreneurs do:

  • Start with an LLC (because it’s simple and flexible).
  • Then file a form with the IRS (Form 2553) to switch to an S-Corp for tax purposes.

Why it matters: The LLC gives you legal protection. The S-Corp gives you tax savings. Best of both worlds!

How much should I be making for an S-Corp to make sense?
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If your net profit (that’s income after expenses) is $60,000 or more, an S-Corp can save you thousands on taxes each year. If you earn below that, it might not be worth the extra complexity yet.

Why $60,000? That’s the point where the savings outweigh the extra admin work like payroll and filings.

How does an S-Corp save me money on taxes?
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An S-Corp saves you money on self-employed taxes by letting you split your income into:

  • A salary (which gets hit by the 15.3% self-employment tax)
  • Profit (which doesn’t get taxed the 15.3% rate)

Instead of paying 15.3% self-employment tax on everything like an LLC, you only pay it on the salary portion.

Real-world example:
Make $100K profit? Pay yourself $50K salary → save $7,500 in taxes.


Yes, it’s legit. And yes, the IRS allows it—if done right.

How do I pay myself as an S-Corp owner?
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You’ll use a payroll provider to pay yourself a regular W-2 salary. The rest of your profit? You take it out as an “owner’s draw” or distribution.

Think of it like this: You’re both the boss and the employee. The IRS wants you to act like it.

What’s a “reasonable salary” and how do I know what mine should be?
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The IRS expects you to pay yourself a salary that’s fair for your role. Not too low (they don’t want you avoiding taxes), and not over the top.


Here’s how to calculate a reasonable salary:

  • Search sites like Glassdoor or BLS.gov
  • Ask yourself: What would I pay someone else to do what I do?

Tip: When in doubt, Keeper’s tax pros can help you set a defensible number.

What tax forms do I need to file as an S-Corp?
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Here’s what your tax filing form checklist looks like:

  • Form 1120-S: This is your business’s tax return
  • Form W-2: To report your salary
  • Form 941 (quarterly): For payroll taxes
  • State returns: If required where you live

Bonus points: You’ll also send yourself a K-1 to show your share of profit.

Can I still write off business deductions with an S-Corp?
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Absolutely! You can still deduct:

  • Form Home office setup
  • Client meals & travel
  • Health insurance
  • Retirement plans like a Solo 401(k)-S: This is your business’s tax return

S-Corp or not, write-offs = less taxable income = lower tax bill if you make any 1099 income.

Does an S-Corp protect my personal assets?
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Yes! Whether you’re an LLC taxed as an S-Corp or a full-on corporation, you still get limited liability protection, meaning your personal stuff (car, home, savings) is shielded if the business is ever sued.

Important: Keep your business and personal finances separate to make sure that protection holds up.

What are the downsides of becoming an S-Corp?
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There are a few downsides to becoming an S-Corp:

  • More paperwork (you’ll be filing at least 4 forms a year).
  • You’ll have to run payroll  (even if you’re a team of one).
  • Not worth it if you’re making under $60K/year

But if you’re growing? The tax savings usually make it very worth it!

How do I switch my LLC to an S-Corp?
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It’s easier than you think! Here’s the quick path:

  • Keep your LLC as-is
  • File Form 2553 with the IRS to elect S-Corp status
  • Start payroll and pay yourself a reasonable salary
  • File your S-Corp tax return at the end of the year

Pro tip: You’ve got a 75-day window after forming your LLC to make the election for the current year.

Keeper provides step-by-step guidance from licensed tax pros, if you want to skip the manual work and get it done quickly and accurately!

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