An S corporation can lower self-employment tax for a profitable LLC. In New York City it also adds costs that most online calculators ignore. We run the real numbers before you file anything.
Book a Free 15-Minute ConsultationAs a sole proprietor or single-member LLC you pay self-employment tax on all of your profit. As an S corporation you pay yourself a reasonable salary through payroll, and the rest of the profit comes out as distributions that are not subject to self-employment tax.
New York City does not recognize the S election. Your S corporation files the NYC General Corporation Tax return, and you add payroll costs and a second business return. For some owners that wipes out the savings, while for others it still saves thousands. That is why we compare your situation both ways first.
Starting a new business? Our $1,500 Entrepreneur Starter Kit includes the LLC, EIN, S election and New York publication.
| Payroll | $300/mo incl. 1 employee, + $20 each additional |
| Bookkeeping | from $300/mo |
| Bookkeeping + Payroll | from $500/mo incl. 1 employee, + $20 each additional |
| Business tax return | from $1,000 |
| Personal tax return | from $300 |
| Entrepreneur Starter Kit | $1,500 one time |
Tax returns and bookkeeping are "from" prices. You get an exact quote in writing before any work starts. Full price list
Usually when profit is steady and comfortably above a reasonable salary for your role. We check your numbers for free.
Two months and 15 days after the start of the tax year it should take effect. Late-election relief is often available.
Yes. It files the NYC General Corporation Tax return because the city does not recognize S status.
63-08 Woodhaven Blvd, Rego Park, NY 11374 · Get directions →