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C2C Tax Savings Calculator
See how much you're likely overpaying as a default sole-proprietor — and what an S-Corp election could save you on the same contract. Built by a 15-year U.S. IT recruiter.
S-Corp settings (advanced)
Leave salary at 0 to auto-suggest a defensible amount. The IRS requires a "reasonable" salary — set it too low and you invite an audit.
The same gross revenue, taxed under each structure. "Take-home" is what lands in your pocket after federal, state, FICA/self-employment tax, and business costs.
Planning estimate using approximate current U.S. federal brackets and standard deduction.
Sole proprietor / single-member LLC: self-employment tax of 15.3% on 92.35% of net profit
(Social Security portion capped at the annual wage base; Medicare uncapped, plus 0.9% additional Medicare
over the threshold), half of SE tax deducted, then a simplified 20% QBI deduction, then federal and state
income tax. S-Corp: you pay yourself a reasonable W2 salary (subject to full FICA), and the remaining
profit is taken as a distribution that avoids the 15.3% SE/FICA tax — minus the extra cost of payroll and
accounting. The S-Corp savings come almost entirely from that untaxed distribution.
Not tax advice. This is a rough planning estimate only. Actual results depend on your
full return, deductions, QBI phase-outs (IT consulting is a specified service business), state rules, and
a defensible reasonable salary. Confirm with a licensed CPA before electing S-Corp status.
A free tool from DigitalBloomBox
Want the full system? The IT Consultant's Guide to the U.S. Recruitment Process — on Amazon.