Wyoming S-Corp Election Savings Calculator
Wyoming has no state income tax on wages or business income. Set your expected net profit and a reasonable salary to see whether an S-corp election beats staying a sole proprietor or default LLC in Wyoming for 2026.
Sole prop / default LLC
Take-home rate 76%
Take-home $91,538 Tax $28,462
Net profit $120,000
Self-employment tax (15.3%) $16,955
Federal income tax $11,506
Wyoming income tax $0
Take-home pay $91,538
S-corp election
Take-home rate 79%
Take-home $94,791 Tax $25,209
Salary (W-2 wages) $65,000
Distribution (K-1) $48,828
Payroll tax (15.3%) $9,945
Federal income tax $14,064
Wyoming income tax $0
S-corp admin costs $1,200
Take-home pay $94,791
Electing S-corp status could save you
$3,253 per year
The distribution portion of your profit skips the 15.3% self-employment tax entirely — it's only subject to ordinary income tax. That's the whole S-corp savings mechanism. It's offset by payroll tax on the salary you must pay yourself, plus payroll processing and extra tax-prep costs. The IRS requires "reasonable compensation" for your salary — pay yourself too little relative to your work and distributions, and it can be recharacterized as wages on audit.