Tax Strategy
Year-round modeling. Stop overpaying estimated taxes. Structure distributions before Dec 31.
Scenario inputs
S-Corp salary optimizer
Minty Collective · IRC §1366
Recommended W-2 salary
$60,000
Distributions (no SE tax)
$90,000
Est. SE tax savings vs sole prop
$12,014
Effective tax rate
31.8%
IRS requires "reasonable compensation" for S-corp owners. The salary number above targets the 40–60% zone the IRS generally accepts for a single-owner service business. If your role is closer to passive (design, hands-off ownership), you may be able to justify a lower salary — confirm with your CPA. Oregon follows federal treatment.
Quarterly estimates — safe harbor
IRC §6654 · OR-ES
Safe harbor annual (110% prior yr)
$35,200
Your est. annual
$38,000
Overpayment risk
$2,800
| Quarter | Due date | Federal (IRS) | Oregon (DOR) | Total | Status |
|---|---|---|---|---|---|
| Q1 2025 | Apr 15, 2025 | $7,929 | $871 | $8,800 | paid |
| Q2 2025 | Jun 16, 2025 | $7,929 | $871 | $8,800 | paid |
| Q3 2025 | Sep 15, 2025 | $7,929 | $871 | $8,800 | paid |
| Q4 2025 | Jan 15, 2026 | $7,929 | $871 | $8,800 | paid |
| Q1 2026 | Apr 15, 2026 | $7,929 | $871 | $8,800 | due |
| Q2 2026 | Jun 15, 2026 | $7,929 | $871 | $8,800 | upcoming |
| Q3 2026 | Sep 15, 2026 | $7,929 | $871 | $8,800 | upcoming |
| Q4 2026 | Jan 15, 2027 | $7,929 | $871 | $8,800 | upcoming |
Safe harbor rule: if you pay 110% of your prior year total tax in four equal installments, the IRS and Oregon DOR cannot assess underpayment penalties — even if your actual liability ends up higher. Pay federal at IRS.gov/payments, Oregon at revenueonline.dor.oregon.gov.
Oregon PTE election
ORS 316.043 · SALT workaround
Oregon PTE payment
$13,128
Federal deduction value
$2,888
Net benefit (per yr)
$2,888
Oregon lets pass-through entities elect to pay state tax at the entity level. That turns a personal (capped at $10k SALT) deduction into a full business deduction on the federal return. For Minty Collective and the Partnership LLC, the election can save you roughly 22% of your Oregon liability on federal taxes. Election must be made annually — confirm deadlines with your CPA.
Total tax breakdown (if all income were sole-prop)
Federal income
$25,247
Oregon income
$11,643
Self-employment
$21,194
Total
$58,084
This is the worst case — treating everything as Schedule C with no S-corp election. Your S-corp structure on Minty Collective should reduce the SE component by roughly $12,014 compared to this baseline.
Entity tax forms