Do I have to pay myself a salary as an S-corp owner?

Yes. The IRS requires S-Corp owners to pay themselves a reasonable compensation salary before taking distributions. This is the mechanism that creates tax savings.

Does converting to S-corp affect my LLC's legal protection?

No. An S-corp election is purely a tax classification change. Your LLC remains intact with all existing liability protection preserved.

How much does S-Corp conversion cost?

NetSave provides estimated first-year savings, compliance costs, and fees before you commit during the free savings review. Most clients find their savings significantly exceed the cost of services.

Can I still elect S-corp if I missed the March deadline?

Possibly. The IRS offers late election relief under certain conditions. Many clients come after the standard deadline and still qualify for retroactive filing.

S-Corp Election Specialists · CPA-Led

Your LLC may be costing you thousands — S-Corp election can fix that.

Most single-member LLC profit is subject to self-employment tax — on top of income tax. S-corp election can significantly reduce that burden. Our licensed CPAs handle everything: savings analysis, Form 2553 filing, payroll setup, and year-round compliance.

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💰 Savings Calculator

How much could you save?

Annual net business income

$60k$500k

$150,000

Estimated annual S-corp savings

$8,925

vs. single-member LLC (sole prop filing)

SE tax as LLC owner–$21,150

SE tax as S-corp owner–$12,225

Reasonable salary (est.)$80,000

Annual net savings$8,925

Have a CPA review my number — free

Simplified estimate based on 2026 IRS SE tax rates. Actual savings depend on reasonable compensation, payroll costs, state fees, deductions, and other income. A licensed CPA will calculate your exact numbers.

Note: Income above the $184,500 SS wage base only incurs 2.9% Medicare.

The hidden tax trap

Your LLC profit may be triggering thousands in self-employment tax.

As an LLC owner, your net profit may be subject to self-employment tax in addition to income tax. For profitable businesses, that can add up quickly. With an S-Corp election, you may be able to split income between reasonable salary and distributions, reducing SE tax exposure.

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As an LLC ownerYour net business profit may be subject to SE tax — currently 15.3% up to the Social Security wage base, with Medicare tax continuing above that.

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With an S-corp electionPart of your income may be taken as distributions instead of wages, which can reduce self-employment tax when structured properly.

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Typical first-year result$5,000–$15,000 in SE tax savings — often enough to cover conversion costs many times over.

15.3%Self-employment tax rate on net profit up to the Social Security wage base, with Medicare continuing above

$40k+Cumulative overpayment over 5 years for a typical $150k/year LLC owner

TimingMissed the standard deadline? Late S-Corp election relief may still be available — we'll review your eligibility

Our process

From LLC to S-corp in 4 simple steps

We handle the entire conversion — IRS filings, state compliance, payroll setup, and year-round tax strategy.

Free consultation

We analyze your income and calculate your exact savings. No obligation, no pressure.

S-corp election filing

We file IRS Form 2553 and handle all state-level compliance paperwork.

Payroll setup

We establish your reasonable salary and set up payroll — a legal requirement for S-corp owners.

Year-round advisory

We file your 1120-S and advise on distributions, deductions, and strategy all year.

Is this right for you?

Strong candidates for S-corp conversion

Established LLC owner

Your business nets over $60k/year and you may be paying more in self-employment tax than necessary.

✓ Strong candidate

Growing business

Revenue is climbing and you haven't revisited your entity structure since launch.

✓ Ideal timing

Independent professionals

Consultants, contractors, healthcare providers, realtors, and licensed professionals see the highest S-corp savings.

✓ Consistently high savings

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We'll be honest: Not every LLC should convert. If S-corp doesn't make sense, we'll tell you — and explain why. That's what working with licensed CPAs means.

What clients say

5.0★ on Google — see for yourself

★★★★★

"I've been using Ben and his team for both personal and business accounting for a few years. Excellent advice, fair price, very quick to respond, and always looking for ways to save me money."

Greg L.

Google Review

★★★★★

"Ben was very smart and knowledgeable, answered all my questions and explained well. He tried his best to save our tax money and gave us good suggestions for future returns."

Shuhong H.

Google Review

★★★★★

"I tried 3 other firms — no one knew how to handle my case. NetSave took it on and within days had a plan. They know what they're doing!"

Ortal L.

Google Review

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Who you'll work with

Licensed professionals. Not software.

Every S-corp conversion is handled by a licensed CPA or Enrolled Agent — never outsourced.

Binayak "Ben" Karki

CPA · Managing Partner

Former PwC. 15+ years in tax strategy. Licensed CPA and AICPA member.

Biraj Pandey

EA · Tax Specialist

IRS-licensed EA. Master's in Accounting. 8+ years in small business tax planning.

Bibek Kshetri

Co-Founder & Director of Operations

Oversees operations, technology, and client experience — ensuring a seamless process from start to finish.

Our approach

What we review before recommending S-Corp

We don't just file paperwork. Every client gets a full analysis to make sure S-Corp actually makes sense for their situation.

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Net profit analysis

Is your income high enough for S-Corp to make sense after compliance costs?

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Reasonable salary

What's the right salary for your role, industry, and location per IRS guidelines?

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Payroll cost

What will payroll processing and filings cost, and does the math still work?

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State fees & rules

Some states impose extra S-Corp taxes or fees that reduce net savings.

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Election eligibility

Can you elect for this tax year, or do you qualify for late election relief?

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First-year net savings

Your estimated savings after all compliance costs — so you see the real number.

Free S-Corp Savings Review

Find out exactly how much you could save.

No commitment. No jargon. A licensed CPA will walk through your numbers.

Your free review includes

✓ LLC vs. S-Corp tax savings estimate
✓ Reasonable salary recommendation
✓ Payroll and compliance cost overview
✓ Form 2553 deadline and filing review
✓ First-year cost vs. savings breakdown

Or call: (619) 878-1514 · Schedule online · No spam, ever

LLC vs. S-Corp

What actually changes with an S-Corp election?

An S-corp election is a tax classification change — not a legal entity change. Your LLC stays intact. Here's what's different:

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Legal entity stays LLC

All liability protection is preserved. Nothing changes with your operating agreement or state registration.

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Tax treatment changes

The IRS treats your LLC as an S-corporation for tax purposes. You file Form 1120-S instead of Schedule C.

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Owner must run payroll

The IRS requires a "reasonable salary" before distributions. We help determine the right amount and set up payroll.

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Distributions may reduce SE tax

Profit above your reasonable salary may be taken as distributions, which can reduce self-employment tax exposure when structured properly.

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Additional compliance required

S-corps require payroll tax filings, 1120-S returns, and proper bookkeeping. We handle all of it.

Not for everyone

S-Corp may not be right if:

Net profit is under $60k. Compliance costs may outweigh the tax savings at lower income levels.

You can't maintain payroll. S-corps require regular payroll processing and filings.

State fees eat the benefit. Some states impose extra S-corp taxes or fees that reduce net savings.

Complex multi-owner structure. Partnerships with varied ownership may need a different approach.

You plan to sell or raise funding soon. Certain investors or buyers prefer C-corp or LLC structures.

Not sure? That's exactly what the free review is for. We'll run the numbers and give you an honest recommendation — even if that means staying as an LLC.

Common questions

S-corp conversion FAQ

Generally, once your business nets $60,000 or more per year, an S-corp election becomes worth evaluating. Below that, compliance costs can outweigh savings.

Form 2553 must generally be filed within 2 months and 15 days of your tax year start for the election to apply that year. Missed it? Late election relief is available in many cases — we help clients file retroactively when they qualify.

Yes — the IRS requires a "reasonable compensation" salary before distributions. This is the mechanism that creates your savings.

No. An S-corp election is purely a tax classification. Your LLC remains intact with all liability protection preserved.

We'll show you estimated first-year savings, compliance costs, and our fee before you commit — all during the free review. Most clients find their savings significantly exceed the cost of our services.

Possibly. The IRS offers late election relief under certain conditions. We'll review whether you qualify and handle the filing if so. Many of our clients come to us after the standard deadline.

The IRS requires S-Corp owners to pay themselves a salary that reflects what someone in a similar role would earn. We consider your industry, location, hours, and responsibilities to recommend a salary that's defensible and tax-efficient.