Therapist S Corp Tax Calculator

Revenue

$210,000

$50k/yr$500k/yr

Annual Expenses

$15,500

$0$100k

Retirement

Show 401(k) savings as an S Corp See how much you could save in taxes each year

Your Age

401(k) Contribution

$10,000

$0$23,500

Estimated Annual Savings

—

as an S Corp vs. sole proprietor or LLC.

Based on 60% of net income as salary, 40% as distributions, and $2,500/yr in payroll fees.

Monthly

—

Gross Revenue

—

Net Income

—

Effective Tax Rate

—

S Corp Take-Home

—

Savings & Retirement

—

S Corp savings 401(k) 7% return (both)

Assumes savings are invested at roughly 7% annual growth, based on blended stock and bond returns over the last 20 years. Returns vary and aren't guaranteed.

Estimated Tax Breakdown

Sole Proprietor / LLC

Gross revenue—

Practice expenses—

Self-employment tax—

Federal income tax—

Total Tax —

S Corporation

Gross revenue—

Practice expenses—

401(k) contribution—

Payroll taxes (FICA)—

Payroll & filing cost—

Federal income tax—

Total Tax + Costs —

See your full tax savings

Unlock your full breakdown, including retirement savings you could be building as an S Corp.

Benefits of an S Corp

Reasonable Compensation

The IRS requires your salary to reflect what you'd pay an employee to do your work. For therapists, typical ranges are $50k–$100k depending on hours and specialty.

The Self-Employment Tax Advantage

As a sole proprietor, you pay 15.3% self-employment tax on all net income. In an S Corp, payroll tax applies only to your salary — distributions are not subject to payroll tax, which is where the savings come from.

Health Insurance

S Corp owners can deduct 100% of health insurance premiums through the company, reducing both income and payroll taxes — a significant benefit for self-employed therapists.

Retirement Savings

A Solo 401(k) via an S Corp allows both employee and employer contributions — potentially $66k+ per year. This compounds your tax savings beyond self-employment tax reduction.

Home Office & Mileage

An S Corp lets you deduct a dedicated home office space and business mileage as legitimate business expenses, reducing your taxable income every year.

Liability Protection

An S Corp separates you from your business, shielding your personal assets from business debts and lawsuits — protection a sole proprietorship simply doesn't offer.

Should your practice
become an S Corp?

How Does An S Corp Work?

Without an S Corp, you're overpaying your taxes

With an S Corp, you get paid as your company's owner and its employee

Benefits of an S Corp

Lettuce Automates Your S Corp And Maximizes Your Tax Savings

Never worry about setting aside money for taxes again

Should your practicebecome an S Corp?

How Does An S Corp Work?

Without an S Corp, you're overpaying your taxes

With an S Corp, you get paid as your company's owner and its employee

Benefits of an S Corp

Lettuce Automates Your S Corp And Maximizes Your Tax Savings

Never worry about setting aside money for taxes again

Should your practice
become an S Corp?