S-Corp Formation Package | $2,950 Fixed Fee | Done in 14 Days
Switch from sole proprietor or LLC to S-Corp and save $5,000–$13,000 annually in payroll taxes (before ongoing costs).
Fixed price. No surprises. Licensed CPA handles everything from formation to payroll setup to ongoing compliance. You get to keep more of what you earn.
Calculate Your Potential Tax Savings
Compares self-employment tax as a sole proprietor against payroll taxes (FICA) on a reasonable W-2 salary as an S-corp, using 2026 rates.
What's Included in the $2,950 Package
Entity Formation or Election Filing
We file your S-Corp election with the IRS (Form 2553). If you need late election relief, we handle that too. If you need a new LLC formed first, we file with the California Secretary of State.
Payroll Setup
We configure your payroll , set up your reasonable compensation (W-2 wages), establish payroll tax accounts with federal and state agencies, and run your first payroll.
Reasonable Compensation Study
The IRS requires S-Corp owners to pay themselves a "reasonable" salary. We research comparable wages in your industry and location, document the analysis, and set your W-2 amount defensibly.
Opening Balance Sheet
We prepare your opening balance sheet, establish your initial basis in the S-Corp, and document the capital contribution properly for tax purposes.
First Month Bookkeeping Setup
We set up QuickBooks Online, connect your bank accounts, establish your chart of accounts, and process your first month of transactions so you start clean.
One Planning Call
30-minute call to review your setup, answer questions, explain ongoing requirements, and plan quarterly tax estimates. You understand exactly what happens next.
Your first 14 days
Most engagements follow this sequence from signed engagement to active S-corp status.
Days 1–2
Consultation and engagement. We review your numbers, confirm an S-corp fits, and outline the filing plan.
Days 3–7
Entity formation if needed, then S-corp election filing with the IRS (including late-election relief when applicable).
Days 8–12
Payroll setup, reasonable compensation study, and bookkeeping system configuration.
Days 13–14
Final review, planning call, and handoff. You leave with an active S-corp and clear next steps.
Sole Proprietor vs. LLC vs. S-Corp: The Comparison
| Sole Proprietor | LLC (taxed as sole prop) | S-Corporation | |
|---|---|---|---|
| Self-Employment Tax | 15.3% on 92.35% of all profit | 15.3% on 92.35% of all profit | 15.3% FICA on W-2 wages only + CA franchise tax (1.5%, $800 min) |
| Setup Complexity | None | Low | Moderate (we handle it) |
| Annual Compliance | Schedule C only | Schedule C only | 1120-S + payroll + reasonable comp |
| Tax Savings | $0 | $0 | $5,000-$13,000/year before ongoing costs |
| Best For | Under $50K profit | Under $80K profit | $80K+ profit |
Ongoing Support: $450/Month
After your S-Corp is set up, you need ongoing bookkeeping and payroll to stay compliant. Our monthly package includes:
- Monthly bookkeeping: Categorize transactions, reconcile accounts, generate P&L and balance sheet
- Payroll processing: Run your payroll (owner wages), withhold taxes, file quarterly payroll returns
- Quarterly tax estimates: Calculate your quarterly payments and send reminders
- Year-end tax prep: 1040 personal return + 1120-S business return (billed separately at year-end)
- Email support: Questions answered within one business day
Is S-Corp Right for You?
Good Candidates for S-Corp
- Net profit $80,000+ per year
- Stable income (not wildly fluctuating month-to-month)
- Willing to run monthly payroll
- Want to save on self-employment taxes
- Comfortable with slightly more compliance (we handle it)
Not Right for S-Corp (Yet)
- Net profit under $60,000
- Just starting out (first year in business)
- Unpredictable income month-to-month
- Cannot commit to monthly payroll
- Want absolute simplicity over tax savings
Not sure? Book a free consultation and we will analyze your numbers. If S-Corp does not make sense for you, we will tell you honestly.