At $170,000 of income, the S-Corp only saved $5,117. Was it worth it?

I hear this all the time from business owners: “I make good money. Shouldn’t I just become an S-Corp?” Maybe. But the better question is: Will the S-Corp actually save enough to justify the extra payroll, tax return, bookkeeping, and compliance? Let’s look at a simple example. $170,000 of business income Assume a self-employed business owner has about $170,000 of gross business income and roughly $10,000 of business expenses. If they stay on Schedule C, the remaining business profit is...