"As a W-2 employee, I have almost no deductions."

How Much Would a Business Save You in Taxes?

Enter your W-2 income and a side business revenue. See how an S-Corporation structure unlocks deductions and eliminates self-employment tax on your business profits.

Your Situation

W-2 Income $2,000,000

Your salary + bonuses + RSU vests from your employer

Side Business Revenue $200,000

Consulting, advisory, coaching, or other business income

Reasonable S-Corp Salary $80,000

The portion of business income paid as salary (subject to payroll tax). The rest is distributions (no self-employment tax).

Business Deductions $60,000

Home office, travel, meals, equipment, insurance, contractors. Your W-2 job allows none of these.

Filing Status

Single ($313K max business loss)

Married Filing Jointly ($626K max business loss)

Without a Business vs. With an S-Corp

W-2 Only (No Business)

W-2 income

Business deductions available$0

Taxable income

Federal tax (at 37%)

Self-employment tax$0 (W-2 only)

W-2 + S-Corp Business

W-2 + business revenue

Business deductions

Self-employment tax saved (S-Corp)

QBI deduction (20% of biz income)

Federal tax (after deductions)

Annual Tax Savings

Self-employment tax is 15.3% on the first $168,600 of self-employment income (2025), plus 2.9% Medicare on amounts above. S-Corp distributions avoid this entirely. QBI deduction is 20% of qualified business income (OBBBA: permanent). Business loss deduction capped at $626K (MFJ) / $313K (Single).

Cumulative Impact

Year 1 savings

5-year savings

10-year savings

What's your next move?

A business is the foundational lever. Everything else builds on this.

You Are Here

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Adjust Your Numbers

Change income, revenue, salary split, and deductions above.

We'll evaluate your situation, help you choose the right entity, and map out your deduction strategy.

S-Corp setup, deduction checklist, entity comparison, and how Lever 1 unlocks Levers 2-7.

Read the Guide →

A Google VP saved $137,500/year on this lever alone through strategic business interests. That's lever 1 of 7. Running total: $137,500. Six more to go.

Self-employment tax calculated at 15.3% on first $168,600 + 2.9% Medicare above. S-Corp reasonable salary must meet IRS safe harbor requirements. QBI deduction at 20% per OBBBA (permanent). Business loss deduction limited to $626,000 (MFJ) / $313,000 (Single) per IRC Section 461(l). This calculator is for educational purposes only.