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The S Corp Compare is a one-year, two-case analysis that you can use to compare the tax results of operating a business as a Subchapter S Corporation in one column, and as a different entity, such as a sole proprietorship or partnership, in the other column. You’ll view the results of the analysis on the S Corp Comparison tab, which highlights the specific differences pertaining to each entity.

You can also easily alternate between an S Corp Compare and a regular tax plan by toggling the S Corp analysis on or off. When you toggle S Corp analysis on or off, your data and tax calculations remain the same—the S Corp analysis simply presents the results in a different way.

Use the following procedure to run S Corp compare in your Advisory Planner project.

1. With the existing plan open, choose Comparison > S Corp compare to open the Compare S corp vs other entity dialog.
2. Slide the S Corp analysis toggle to on.
3. Select the year to be used for the analysis.
4. Select the case and unit for the other entity activity

Note: You’ll need to edit or create the two activities for the comparison and associate one with the S Corporation by selecting S Corp for the Partnership or S Corporation field on Screen K1 Operating and choosing a different selection for this same field in the other case.

5. Select the employer wages for the S Corp. On Screen Sck K-1 Operating, the Partnership or S Corporation field must have S Corp selected to display the employers listed in the wages screen for the chosen S Corp year / case / unit. Click the done button to close the employer dialog.
6. Click Save to close the dialog and review the S corp analysis for the selected year.

Interpret results

On the Main > S Corp Comparison tab, you can view the results of the analysis as a side-by-side comparison: operating the business as an S Corporation in the S Corp case, or as Sole Proprietor or Partnership in another case.

The S Corp case includes the following amounts:

• Net income from the taxpayer-owned S Corporation
• Wages paid by the S Corporation to the taxpayer-owner
• The corporation's share and the owner-employee's share of FICA taxes
• Other income, deductions, and tax credits applicable to the case

The other entity case includes the following amounts:

• Net income from the business (operating as a Schedule C, Schedule F, or a partnership)
• Self-employment tax and the self-employment tax deduction
• Other income, deductions, and tax credits applicable to the case

The last field on this tab, Total Taxes and Expenses, contains the result of the analysis. Use this field to compare the total tax results of operating each business.