Tax
How an S-Corp Election Lowers Self-Employment Tax (With Math)
Electing S‑corp status can cut self‑employment tax—but only once profit, reasonable salary, and added payroll costs make the math work.
August 24, 2026
Electing S‑corp status can cut self‑employment tax—but only once profit, reasonable salary, and added payroll costs make the math work.
Plan to save roughly 15–30% of LLC net profit for taxes depending on S‑corp status, self‑employment and state tax; automate reserves and pay quarterly.
Guide to Delaware franchise tax: LLCs pay $300 by June 1; corporations file by March 1 and pick the lower of two tax methods.
Guide to getting a Texas sales tax permit: who must register, the $500,000 nexus rule, how to apply, and filing & recordkeeping.
Practical one-line guide to LLC tax write-offs — startup and formation costs, home office, software, mileage, equipment, and recordkeeping.
Plain-English guide on when a single‑member LLC is ‘disregarded’ for federal income tax, what to report, and how elections and EINs matter.
