Entity Structure Matrix for $1M–$10M
Compare S‑Corp, C‑Corp, and Partnership using an apples‑to‑apples model of payroll/SE layers, corporate tax, and shareholder dividends. Use this to frame your strategy session.
Business
Household wages reduce the remaining threshold before Additional Medicare applies.
Thresholds
Update the wage base annually when the IRS publishes the new amount.
C‑Corp assumptions
Sole Prop / Partnership
S-Corporation
Employee Additional Medicare uses the remaining threshold after household wages.
C-Corporation
S‑Corp vs. Sole Prop
Payroll/SE angle only; excludes income tax & §199A.
C‑Corp vs. Sole Prop
Includes corp tax + FICA + dividends under your assumptions.
Quick notes:
- Only **OASDI** is capped at the wage base; **Medicare is uncapped**.
- Additional Medicare (0.9%) applied using **remaining threshold after household wages**.
- Planner excludes full individual income tax, §199A/QBI limits, NIIT on pass‑through, FUTA/SUTA, and local payroll taxes.
Get the full matrix (PDF + spreadsheet)
Includes assumptions, pros/cons by scenario, and a documentation checklist for S-Corp reasonable compensation.
Common questions
Short answers based on how the planner actually models payroll layers, NIIT, and state corporate tax.
Turn your entity model into a tax plan
Bring your numbers and get a focused, CPA-led session to choose S-Corp vs C-Corp vs LLC, set a defensible owner salary, align payroll/SE tax and dividends, and leave with a clear 12-month implementation checklist.