Model the S-Corp conversation before an election decision is made
S-Calc helps an accounting firm compare the entity math on a client's facts, test how salary and compliance costs change the picture, and show when an S-Corp election deserves a deeper conversation.
Is the election worth discussing on these facts?
The calculator frames the entity conversation without replacing the professional work that follows it.
Schedule C / disregarded LLC versus S-Corp.
Compare the modeled federal, payroll, state, and compliance-cost picture using the scenario entered for the client.
See how salary changes the economics.
Move the salary assumption and see how the modeled benefit or cost changes instead of treating one percentage as the answer.
Make the tradeoffs visible.
Use a simple visual model to discuss payroll tax, compliance cost, pass-through income, and the fact that an election creates ongoing responsibilities.
A planning model the firm can drive in the meeting
The live calculator shows the assumptions, exclusions, and state treatment applied to the scenario while keeping the modeled result separate from client-specific professional advice.
Sample client · Virginia · single filer · 2026 estimates
LLC or S corp: where does the election pay?
At this salary and profit level
The S corp election saves money
+$6,388/yr
S corp advantage across the salary range
Net annual benefit of electing (LLC total minus S corp total, including compliance) at every salary from $0 to adjusted profit. Your current salary is marked; the locked baseline, when set, appears as a hollow marker.
LLC Schedule C
S corp $120,000 salary
Model notes
Assumptions: single filer, standard deduction ($16,100), no other income, no dependents, 2026 estimated brackets and thresholds, state income tax from per-state single-filer tables on the same AGI for both entities. The QBI deduction uses the 20% tentative deduction with the taxable-income phase-out; the W-2 wage limitation is not applied in this estimate. The employer half of FICA is deducted before the K-1 passes through. The Hearth Legacy Program deduction snaps to whole ADRA and token-package units, and its cost is shown as the estimated down payment under 10-year financing.
Not modeled: PTET elections, entity-level state taxes on S corps (for example CA franchise tax), retirement plan contributions, health insurance premiums for a 2%+ shareholder, itemized deductions, other income sources, SSTB status, local taxes, or multi-owner structures. The reasonable-compensation zone shown is illustrative, not a legal safe harbor; no IRS safe harbor exists.
This is a planning estimate, not tax advice. Verify any election decision with a licensed CPA.
The calculator displays the assumptions, exclusions, and state treatment applied to the scenario. A calculator output is a planning estimate—not a documented reasonable-compensation position, an IRS safe harbor, or client-specific professional advice.
The election math answers one question. Reasonable compensation answers another
S-Calc
Job: frame whether an S-Corp election is worth discussing.
- Planning inputs and modeled entity economics.
- Salary sensitivity rather than a prescribed salary.
- Client education and scenario comparison.
- No safe harbor and no documented comp conclusion.
HearthRC Defense
Job: document a reasonable-compensation position for the S-Corp owner.
- Structured facts about the shareholder-employee's work.
- Independent analytical approaches and supporting sources.
- Reconciled figure with working papers and rationale.
- Professional review before reliance.
S-Calc supports the relationship; it is not another capability to buy
S-Calc sits beside Hearth's core capabilities as a useful S-Corp conversation tool. Full firm/client use is included at no additional cost with an eligible Hearth pilot or a Legacy engagement.
See the Four Hearth Capabilities →How access fits
- Use the public sample to understand the model.
- Eligible pilot firms receive S-Calc access as part of that relationship.
- Legacy engagements also include access.
- The calculator does not force a firm into HearthRC or another service.
Move from modeled election economics to the work the client actually needs
Start a HearthRC report when a defensible compensation position is the next step, or return to the broader Hearth capability paths.
S-Calc is a planning utility. It does not establish reasonable compensation, create an IRS safe harbor, or replace client-specific professional judgment.