The Economic Times

Self-employed? An S-Corp election could slash your self-employment taxes in 2026, and here's what smart business owners are doing today

For self-employed owners, the biggest 2026 tax decision may not be another deduction. It could be how the business is structured. An S-Corp can let eligible owners split income between wages and distributions, potentially reducing self-employment taxes. The catch is that the rules require reasonable compensation, proper payroll and careful planning before year-end.