LLCs and sole props earning over $80k can save thousands by electing S-Corp status. Our free wizard guides you through Form 2553 step by step.
Tell us about your business to see your potential tax savings
As an LLC or sole prop, you pay 15.3% self-employment tax on your entire profit. With S-Corp, you only pay it on your “reasonable salary” — the rest is distributions taxed at a lower rate.
| Annual Profit | Reasonable Salary | Annual Savings |
|---|---|---|
| $80,000 | $45,000 | $5,355(6.7% savings) |
| $120,000 | $60,000 | $9,180(7.7% savings) |
| $200,000 | $85,000 | $17,595(8.8% savings) |
Only pay self-employment tax on your reasonable salary, not your entire profit.
Our step-by-step wizard collects the info you need and generates a reference sheet.
Missed the deadline? We help you file for late election relief under Rev. Proc. 2013-30.
Most small businesses meet the requirements. Here's what the IRS requires:
“My accountant told me about S-Corp for years but the paperwork scared me off. Foundli made it simple — filed in 15 minutes and I'm saving $11,000 this year.”
Our free S-Corp election wizard walks you through Form 2553 in minutes.
We pre-fill what we can from your existing LLC data.
Name, SSN, share percentage, and consent for each owner.
Timely, late, or late with relief — we explain the options.
Get a PDF with all the info to fill out the official IRS form.
Mail or fax Form 2553. We track the status for you.
See how other business owners saved with S-Corp election.
“Switching to S-Corp saved me over $12,000 in self-employment taxes. Foundli walked me through every step of the election process.”
“I was nervous about the paperwork, but the wizard made it easy. Filed my Form 2553 in under 20 minutes.”
“My CPA recommended S-Corp years ago but it seemed complicated. Foundli finally made it accessible.”
Everything you need to know about electing S-Corp status.
An S-Corp election (Form 2553) tells the IRS to treat your LLC or corporation as an S-Corporation for tax purposes. This allows you to split your income between salary (subject to payroll taxes) and distributions (not subject to self-employment tax).
Business owners earning over $80,000/year in profit typically see significant savings. The more you earn, the more you save. However, S-Corp also adds payroll complexity, so it's important to weigh the costs and benefits for your situation.
A reasonable salary is what you'd pay someone to do your job in the open market. The IRS requires S-Corp owners who provide services to pay themselves a reasonable salary before taking distributions. We provide guidance based on industry data.
For existing businesses, you must file Form 2553 by March 15 to be effective for the current tax year. For new businesses, you have 75 days from formation. Missed the deadline? We can help you apply for late election relief.
The IRS allows late elections under Rev. Proc. 2013-30 if you had reasonable cause for missing the deadline. Foundli guides you through the late election relief process, which is approved in most cases.
Our free S-Corp election wizard takes just 10 minutes to complete.
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