Stop overpaying self-employment tax.

Self-employed people pay 15.3% self-employment tax on every dollar of profit. An S-Corp election lets you pay it only on a reasonable salary. For many freelancers earning $80,000 or more, that means $5,000 to $12,000 back every year. Run your numbers below.

Sole Proprietor

If you earn money on your own and aren't a registered business, this is you by default. You and your work are legally the same.

No setup required
Easiest tax filing
Write off expenses
Full personal liability
Higher self-employment tax
Looks less professional

LLC

A formal business structure that legally separates you from your business, giving you a 'liability shield.'

Personal asset protection
Simple to manage
Flexible tax options
Setup and annual fees
More admin work

S-Corp

An S-Corp isn't a business structure, but a special tax status. An LLC can 'elect' to be taxed as an S-Corp to potentially save big on taxes.

Big potential tax savings
Liability protection
Deduct your home office
Stricter rules
Extra admin costs
Only for US residents

Tax Savings Simulator

Estimate your potential tax savings by choosing the right structure.

Is an S-Corp right for you?

An S-Corp isn't for everyone. Below roughly $60,000 in profit, the extra payroll and filing costs usually outweigh the savings. It's likely a fit if:

  • Your business profit is consistently above $60,000–$80,000 per year
  • You expect similar or higher income next year
  • You're willing to run payroll for yourself (we guide you through it)
  • You want your books clean enough to justify your salary to the IRS

Keepify handles the whole transition: the Form 2553 election, reasonable salary documentation, and the monthly bookkeeping that keeps it all defensible.

S-Corp questions, answered

Keep thousands more of what you earn

Book a free 15-minute call. We'll look at your numbers and tell you honestly whether an S-Corp saves you money.

Schedule My Free Call