S-Corp help, from the election to the 1120-S
An S-Corp election can cut your self-employment tax, but only when the salary, payroll and return are done right. We run the numbers first, file Form 2553 if it pays, set a salary you can defend, run your payroll and prepare the 1120-S with your personal return.
Updated November 2026
How does an S-Corp save tax?
Salary carries payroll tax. Distributions don't carry self-employment tax. Income tax stays the same either way.
Simplified federal examples using the 2026 Social Security wage base of $184,500. Income tax, the QBI deduction and state taxes aren't included. Try your own numbers in the S-Corp calculator.
What does an S-Corp need from its accountant?
Most S-Corp problems start when the election, payroll and returns sit with three different people.
In the Complete plan
- An honest check on whether the election pays for you
- Form 2553, or late-election relief if the deadline passed
- A reasonable salary, documented and reviewed every year
- Owner payroll in Gusto or ADP, with every filing
- An accountable plan for home office, phone and mileage
- Form 1120-S, K-1s and your personal 1040, prepared together
Watch out for
- No salary, or one far below what the work is worth
- Owner health insurance left off the W-2
- Uneven distributions when there's more than one owner
- States that tax S-Corps anyway, like California's 1.5% and New York City's corporate tax
How do we set up your S-Corp?
We'll tell you if it isn't worth it yet. Plenty of owners hear that from us.
Run the numbers
Profit, a reasonable salary and the real costs.
Elect
Form 2553, plus any state election.
Payroll on
Your salary on a regular schedule.
Year end
1120-S, K-1s and your 1040, matched.
What does S-Corp help cost?
Start with the election, add owner payroll, or have it all handled year-round.
Election
Is it worth it for you?
$350
- Savings worked out with your numbers
- Form 2553 filed if it pays
- A reasonable salary set
Election and payroll
Ready for your first payday
$750
- Everything in Election
- Owner payroll set up
- A salary memo for your file
Year-round
The Complete plan
$650/mo
- Books, payroll and both returns
- Quarterly planning and estimates
- The same accountant all year
Priced on top
- Late elections that need relief from the IRS
- Catch-up books if the numbers aren't ready
Not sure which tier fits? We confirm it, and the fixed price, on a free call before any work starts.
S-Corp questions, answered.
Ask anything else on a free 30-minute call.
Book a callSources: IRS S corporations, Form 2553 instructions
Free tools: S-Corp calculator, Form 2553 guide, Reasonable salary guide, Solo 401(k) calculator
When is Form 2553 due?
No more than two months and 15 days after the tax year starts. For an existing calendar-year LLC, that's March 15, 2027. Missed it? The IRS grants late-election relief in many cases when there's reasonable cause.
Do I have to form a new company?
No. Your existing LLC can elect S-Corp tax treatment by filing Form 2553. The legal entity stays the same.
Do I really need payroll for just myself?
Yes. If you work in the business, the IRS expects a reasonable salary through payroll before you take distributions. Skipping it is the most common way S-Corp owners get into trouble.
Can I undo an S-Corp election?
You can revoke it, but you generally can't elect again for five years. One more reason to run the numbers first.
I elected S-Corp but never ran payroll. What now?
Talk to us soon. We look at what was paid, set up payroll going forward and work out the cleanest way to fix past years.
Tell us what's messy. We'll tell you what it takes.
Tell us what you need and get a fixed price before any work starts. No pressure and no contract.