Entity & S corp setup
An S corp can save a profitable owner real money — or add cost and paperwork for nothing. We run your numbers before you file anything.
What this service is — and why it matters
The S corporation election is one of the most talked-about tax moves for small business owners, and one of the most misunderstood. It can reduce self-employment tax on profits above a reasonable salary, but it also adds payroll, a separate return, state fees and stricter bookkeeping.
We compare your options side by side using your actual profit, state and goals: staying a sole proprietor or single-member LLC, electing S corp status, or adding a second entity. You see the after-tax result and the added costs of each.
If the election makes sense, we handle the filing, set up owner payroll, document a reasonable salary you can defend, and put an accountable plan in place so the business can reimburse your legitimate expenses tax-free.
Everything we handle for you
One named preparer, a second-preparer review, and year-round answers to your questions.
Entity comparison
A side-by-side projection of your total tax and costs under each structure, based on your real numbers and state.
Election filings
Form 2553 filed on time (or with late-election relief where available), plus any state elections or registrations.
Reasonable-salary study
A documented salary analysis based on your role, hours and market data — the part the IRS looks at first.
Owner payroll setup
Payroll configured for your salary, with quarterly and annual payroll filings handled.
Accountable plan
A written plan so the business can reimburse home-office, phone, mileage and other business expenses you pay personally.
Ongoing review
We revisit the structure each year as your profit changes, including whether to adjust salary.
Want to know what this would cost for you? We’ll give you a fixed quote after a free 30-minute review.
Book a reviewThis is a good fit if…
Best for: solo owners and practices with steady, meaningful profit.
- Your business has consistent, meaningful profit
- Someone told you to “become an S corp” and you want to know if it’s true for you
- You already elected S corp status but aren’t running payroll correctly
- You’re adding partners, a second location or a separate line of business
- You pay personal expenses from the business, or business expenses personally
Four steps, start to finish
- Step 1
Free review
We look at your profit, state and goals and tell you whether it’s worth modeling.
- Step 2
Model the options
You get a side-by-side comparison with a clear recommendation.
- Step 3
File and set up
Elections, payroll, salary documentation and accountable plan put in place.
- Step 4
Run it right
Payroll filings, bookkeeping guidance and annual salary review keep it defensible.
What we’ll ask you for
Don’t have everything? That’s normal. Bring what you have to the review and we’ll tell you what else we need — and we can pull much of it from the IRS directly.
- Last two years of returns
- Year-to-date profit and loss
- Formation documents for any existing LLC or corporation
- Your role, hours and responsibilities in the business
- Your goals: retirement savings, hiring, selling, adding partners
Flat fee, quoted up front
No hourly meter. After your free review we send a fixed quote, and we tell you before doing any work outside it.
Or compare our all-in-one plans →Entity comparison, S corp election, reasonable-salary study and accountable plan. Ongoing owner payroll is included in the Planned plan.
Book a free reviewCommon questions
At what profit does an S corp make sense?
There isn’t a single number. It depends on your profit after expenses, your state’s fees and taxes, what a reasonable salary is for your role, and your retirement plans. That’s why we model it with your figures rather than use a rule of thumb.
Do I need an LLC to elect S corp status?
No. An LLC or a corporation can elect S corp taxation. Many owners use an LLC for simplicity, but the tax treatment comes from the election, not the LLC itself.
What happens if I set my salary too low?
The IRS can reclassify distributions as wages and assess payroll taxes, penalties and interest. A documented salary based on your actual duties is your best protection.
Can I undo an S corp election?
Yes, an election can be revoked, but there are timing rules and generally a waiting period before electing again. It’s one more reason to model the decision before filing.
Read up first
The S corp election: when it pays, and when it doesn’t
An S corp can cut self-employment tax on profit above a fair salary, but it adds payroll, filings, and cost. Here’s how to tell if it pays.
Sep 12, 2026 · 6 min readReasonable salary for S corp owners: how to set it and defend it
The IRS expects S corp owners who work in the business to pay themselves fairly. Here’s how to pick a number you can support if asked.
Aug 19, 2026 · 6 min readShould you form an LLC? What it does — and doesn’t — do for your taxes
An LLC can help protect your personal assets, but on its own it doesn’t lower your taxes. Here’s what it changes and what it doesn’t.
Jul 26, 2026 · 6 min readOne firm for all of it
Talk it through with a preparer
A free 30-minute review with a CPA or enrolled agent. We look at your last return and what’s changed, answer your questions, and send a fixed quote. No obligation.