MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

How an S Corp Saves You $9,000 on $100K Profit

7 Dec 2025 · 1 min

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Mark Kohler walks through how switching from an LLC to an S corp can save you $9,000 on $100k profit. With an S corp, you pay yourself a $40k salary and take $60k as pass-through profit, avoiding self-employment tax on that $60k. A standard LLC would hit you with $15,300 in SE tax on the full $100k.

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Let's take that example of $100,000 of net profit. Let's say you have 150k gross income, 50,000 in expenses with cell phone, dining, marketing equipment, home office, travel, all the goodies, and you net $100,000 in profit. As a typical standard LLC, you would pay 15.3% in self employment tax on that 100 grand $15,300. But as an S corporation, you pay yourself a reasonable salary. Let's assume $40,000, leaving $60,000 classified as pass through profit, not septica fica. That's a $9,000 savings right there. And guess what? Those savings multiply every year. The more you make, the more you save.