Tax · Free calculator2026 rules

S-Corp comparison

Whether an S-Corp saves you tax after a reasonable salary, payroll taxes and extra costs. No account needed.

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Answer each Yes/No question, then fill in the amounts that appear. Use 0 only when an amount is truly zero. Want to see how it works first? Load example numbers below.

Would you be the only owner, living in Minnesota all year, with no other income or benefits to include?

This is a simple one-owner example. Health insurance, retirement plans, other income and the timing of the S-Corp election need an expert’s review.

YesNo

How will you file your 2026 personal tax return?An S-Corp’s profit is taxed on your personal return, so your filing status sets the tax rates. Married couples usually file together.

How much profit does the business make in a year, before paying you? (dollars)

Income minus business costs, before any owner pay. For example, 120,000. Not sure? Start with last year’s profit.

What salary would the business pay you through payroll? (dollars)

An S-Corp must pay its owner a reasonable salary: about what you would pay someone else to do your job. For example, 70,000.

How often would you run payroll?Used to show what each paycheck looks like. Many one-owner S-Corps pay monthly to keep payroll fees low.

Does your business pay the lower small-employer rate for Minnesota Paid Leave?Minnesota gives the lower rate on its own to employers with 30 or fewer employees whose average pay is $110,983 a year or less. If you are the only employee, that is your salary. Your yearly Paid Leave rate notice shows your rate. We fill in Yes when the salary above is $110,983 or less, and No when it is more. Change it if your notice says otherwise.

How much more would an S-Corp cost you to run each year? (dollars)

Payroll service, the extra tax return and other fees. For example, 3,500. Leave out payroll taxes. We add Social Security, Medicare, federal and Minnesota unemployment and Minnesota Paid Leave for you.

Did your corporation sign up to cover you for Minnesota unemployment insurance?

Most owners haven’t. In Minnesota, an officer who owns 25% or more of the corporation isn’t covered unless the corporation chose to cover them. Not sure? Answer No, or ask your payroll provider.

YesNo

I live in Minnesota all year. This is a one-owner example with no other income or benefits. I will review my salary and costs with an expert.

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Assumptions, sources & limitations

Planning estimates only. Not a tax return, filing, payment, lending quote or personalized advice. Results depend on complete and accurate inputs. No guarantee of savings or penalty protection. Tax figures checked October 31, 2026; changes and special rules may apply. This initial release needs firm validation before client reliance.