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Entity Choice Planner
Give business owners a better starting point for entity and compensation conversations.
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Recommended structure
S-Corp election
$6,338–$9,506 est. annual savings
An S-Corp election lets you split income between a reasonable W-2 salary and distributions, reducing the portion subject to self-employment tax.
- • Current entity: Sole Prop
- • Net profit: $200,000
- • Primary goal: Reduce Taxes
- • • Determine reasonable salary benchmark for your role
- • • Set up payroll system (Gusto or equivalent)
- • • File Form 2553 with IRS (S-Corp election)
Illustrative planning factors only. Entity decisions depend on state law, compliance costs, and individual tax situation — work with a CPA.
Inputs
- • Current entity
- • Profitability
- • Owner goals
- • Hiring plans
Outputs
- • Decision factors
- • Planning checklist
- • Questions for advisor
Embed summary
Guided planning surface for entity-structure tradeoffs and decision prep.