S Corp Calculator

Software. Marketing. Training. Running your business.
#1
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
Does anyone know of an S Corp vs Sole Prop/Pship calculator that takes into consideration not only the FICA savings, but also tax impact due to changes in QBI and retirement plan contributions?
 

#2
ShawnE  
Posts:
218
Joined:
3-Feb-2016 11:25am
Location:
Las Vegas
I would not mind one of those myself!
 

#3
Posts:
2468
Joined:
24-Apr-2014 7:54am
Location:
Wisconsin
I've been looking for a good one, too, but I end up just doing it manually in Excel for each client's specific situation.

I think it's intentional -- a lot of the S corp calculators are there to encourage clients to become S corps and drive up billings.
 

#4
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
I've come to the conclusion that it's just going to make more sense to use my tax software's tax planner to run two projections for each individual owner. Yes, it's tedious, but it's the only way to get data in an efficient manner that will take into consideration not only the impact of the S election, but also the impact surrounding retirement plan contributions and QBID.
 

#5
Posts:
2612
Joined:
24-Jan-2019 2:16pm
Location:
North Shore, Oahu
Speaking of "honest" calculations, it would be nice to have one that also adds and displays future social security benefit impact scenarios into the mix.
 

#6
smtcpa  
Posts:
515
Joined:
28-Jul-2014 5:16am
Location:
Richmond, VA
Planner CS from Thomson Reuters has a good module for that. We use it and it works well. It presents both options side by side.
 

#7
Posts:
2887
Joined:
21-May-2018 7:50am
Location:
Northern MI and Coastal SC
ItDepends wrote:Speaking of "honest" calculations, it would be nice to have one that also adds and displays future social security benefit impact scenarios into the mix.


Doesn't Corvee claim to do all of this, but at asinine fees?

I agree, I've found my tax software to be the most reliable since I can also consider other factors, such as potential >2% SEHI they may not otherwise be able to deduct on Schedule A.

My biggest issue isn't providing substantial evidence to convince a client. My issue is damn lawyers, financial advisors, and incompetent tax preparers suggesting an S-Corp right off the bat with zero consideration for if they'll obtain any tax savings or not. A $60k company really doesn't benefit, and I do not suggest it until I see a company is approaching six figures net income before "non-cash" deductions.
 

#8
Posts:
728
Joined:
28-May-2014 12:04pm
Location:
Arkansas
CornerstoneCPA wrote:
ItDepends wrote:Speaking of "honest" calculations, it would be nice to have one that also adds and displays future social security benefit impact scenarios into the mix.


Doesn't Corvee claim to do all of this, but at asinine fees?

I agree, I've found my tax software to be the most reliable since I can also consider other factors, such as potential >2% SEHI they may not otherwise be able to deduct on Schedule A.

My biggest issue isn't providing substantial evidence to convince a client. My issue is damn lawyers, financial advisors, and incompetent tax preparers suggesting an S-Corp right off the bat with zero consideration for if they'll obtain any tax savings or not. A $60k company really doesn't benefit, and I do not suggest it until I see a company is approaching six figures net income before "non-cash" deductions.


My retired partner created 100s of single member LLCs, electing S, where profits are about $50K - $75K and he set them up on salaries of $30K per year. Nauseatingly annoying.
 

#9
Posts:
6043
Joined:
22-Apr-2014 3:06pm
Location:
WA State
CornerstoneCPA wrote:My biggest issue isn't providing substantial evidence to convince a client. My issue is damn lawyers, financial advisors, and incompetent tax preparers suggesting an S-Corp right off the bat with zero consideration for if they'll obtain any tax savings or not.


+1!
~Captcook
 

#10
HowardS  
Posts:
2820
Joined:
21-Apr-2014 3:12pm
Location:
Southern Pines, NC
+1. I kill more S-corps than I create.
$75K of profit is a floor for me.
Retired, no salvage value.
 

#11
Posts:
2612
Joined:
24-Jan-2019 2:16pm
Location:
North Shore, Oahu
Especially the ones with $150,000 day jobs already and with no chance of hiring additional employees. :shock:


And they don't elect it properly.


And they check the federal excise tax box on their FEIN application.
 

#12
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
ItDepends wrote:Especially the ones with $150,000 day jobs already and with no chance of hiring additional employees. :shock:


If they can spare the cash to max out a SE retirement account, those ones actually come out behind by electing S.
 


Return to Business Operations and Development



Who is online

Users browsing this forum: FLAcct and 38 guests