When does an S Corp start making sense?

Once your solo business consistently earns $80,000 or more a year, the tax savings generally outweigh the cost of payroll and filings.

What if my income changes mid-year?

The projection updates. If you earn less than expected, less tax is owed and more is available to you as net pay.

Which tax strategies are supported?

Business use of home, business use of vehicle, health insurance premiums, and retirement contributions. Lettuce supports common solo-owner tax strategies; eligibility varies by circumstance.

Are there state taxes Lettuce doesn't pay?

Lettuce handles federal and state income taxes. Some states charge entity-level taxes or fees you pay directly, such as California's franchise tax. Lettuce flags these and provides guidance.

Can I talk to an actual person?

Yes. Pro includes access to certified CPAs and tax professionals, and the LettuceHead assistant handles account questions around the clock.

TAX STRATEGY

S Corp Tax Strategy, Running in the Background

Lettuce sets your reasonable salary using federal compliance guidelines, pays your federal and state income taxes monthly through payroll, and shows you where you'll land before the year closes. No quarterly estimates to plan around.

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See How It Works

Reasonable Salary, Calculated

Lettuce calculates your salary using federal compliance guidelines, factoring in income, expenses, role, industry, and hours worked. The remainder is available as distributions.

Taxes Paid Monthly, Not Quarterly

Federal and state income taxes are withheld and paid monthly through payroll, including the tax owed on business profit. Nothing is left for you to estimate and set aside.

Money Left in Your Account Is Yours

Because the income tax on your business income is already handled, the profit sitting in your operating account doesn't come with a future tax event attached.

Real-Time Projections

See your year-to-date tax position rather than finding out in April. If you're earning less than you expected, the numbers adjust and more comes back to you as net pay.

Built-In Strategies

Business use of home, business use of vehicle, health insurance premiums, and retirement contributions are tracked as part of the same picture. Eligibility varies by circumstance.

Technology Plus People

The platform runs the strategy. Certified CPAs and tax professionals are there when you want a human answer.

1. Lettuce Sets Your Salary

Using federal compliance guidelines and your actual business activity, so the split between salary and distributions is defensible rather than a guess.

2. Payroll Pays the Taxes

Payroll runs on the 10th of every month. Taxes are paid first, and what remains is your net pay.

3. You Watch the Projection

Your position updates as the year goes, so a change in income changes the plan rather than producing a surprise.

Guaranteed Savings, or Your Money Back

If Lettuce doesn't save you more in taxes than you pay for Lettuce Pro, your subscription fees are refunded. No hassle. Lettuce-Back Guarantee. Learn more.

Bhumieka Patel

SEO & Growth Strategist | Bhumi Strategy

"When I saw the tax savings potential of Lettuce setting me up as an S Corp, it felt like a real financial lifeline”

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Susan Jones

Executive Coaching | Growing Edge Leadership

"As a consultant, Lettuce has let me rise to the occasion. I finally feel legit as a business owner.”

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Blake Hunter

Real Estate Agent | Intero Real Estate

"Lettuce let's me focus on the sales and client side of my business without having to spend time on the financial side. Everything runs through Lettuce: Payroll, Tax withholding, 1099s to my vendors, etc.”

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Tax Strategy FAQs

The platform calculates a reasonable salary using federal compliance guidelines, factoring in your income, expenses, role, industry, and hours worked. Documentation supporting the figure is kept on file.

S Corp Self-Employment Tax: How to Pay Less and Save More

Where the self-employment tax savings come from once income splits into salary and distributions.

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S Corp Salary vs. Distributions: How to Pay Yourself

What makes a reasonable salary defensible, and what happens when it isn't.

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confident-graphic-designer-cafe-work-session

S Corp Quarterly Taxes: A Complete Guide to Filing

The quarterly cycle this page replaces, and why monthly payroll withholding changes it.

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Put Your Tax Strategy on Autopilot

The structure, the salary, the monthly payments, and the projections all run from the same system. You spend 10 minutes.

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No Quarterly Estimates
Audit Defense Included
Lettuce-Back Guarantee

S Corp Tax Strategy, Running in the Background