How to Enter Business Owner Income in Boldin
Self-employed individuals, S-corp owners, and C-corp owners
If you own a business, your income likely doesn’t fit neatly into a standard W-2 box. Depending on how your business is structured, you may receive a salary, pass-through profits, distributions, or some combination. Each type is taxed differently — and each should be entered in Boldin differently to keep your plan accurate.
This article covers four income types:
Self-employed (sole proprietor, single-member LLC, or partnership)
C-corporation salary and distributions
S-corporation salary and K-1 distributions
Quick Reference
Not sure where to start? Use this table to find your situation.
Income type | Enter as | FICA modeled | Workaround needed |
Self-employed(sole prop, LLC, partnership) | Work income (net profit) | 7.65% only — add expense for other 7.65% | Yes |
C-corp salary | Work income | 7.65% ✔ | No |
C-corp distributions | Investment / dividend income | None ✔ | No |
S-corp salary | Work income | 7.65% ✔ | No |
S-corp distributions (K-1) | Pass-through / other income | None ✔ | No |
Self-Employed (Sole Proprietor, Single-Member LLC, Partnership)
How it’s taxed
Self-employed individuals pay both the employee and employer sides of FICA — 15.3% on net earnings up to the Social Security wage base ($176,100 in 2026), and 2.9% above it. You can also deduct half of your SE tax from your gross income before calculating federal and state income tax, which lowers your taxable income slightly.
Net profit, not gross revenue Enter your net profit — what’s left after business expenses. This is the same number you report on Schedule C. It’s also the base for SE tax calculations. |
Boldin’s current limitation
Boldin currently models all work income with a 7.65% FICA rate — the employee share. For self-employed individuals, this understates your actual FICA burden by 7.65%. There is no built-in self-employed income type yet, so a workaround is needed.
Workaround
You’ll enter your net profit as work income, then manually add an expense to account for the employer-side FICA that Boldin doesn’t calculate automatically.
Workaround steps
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⚠️ Known limitation This workaround captures the additional FICA cost, but it does not replicate the SE tax deduction — the IRS allows self-employed people to deduct half of SE tax from gross income before calculating income tax. Because Boldin applies income tax to your full work income entry, your income tax projection will be slightly overstated. The error is conservative: your plan may show slightly less take-home than reality, not more. |
C-Corporation
Salary
If you pay yourself a salary from your C-corp, you are an employee of the corporation. Your salary is W-2 income. The corporation pays the employer side of FICA separately — it never appears in your personal income. From Boldin’s perspective, C-corp salary works exactly like any other W-2 income.
How to enter it Enter your C-corp salary as work income. Boldin will apply 7.65% FICA, plus federal and state income tax. No workaround needed. |
Distributions (Dividends)
C-corps can distribute after-tax profits to shareholders as dividends. These are not subject to FICA. However, they are subject to income tax — qualified dividends are taxed at capital gains rates, which are generally lower than ordinary income rates.
Note that C-corp distributions are subject to “double taxation”: the corporation already paid corporate income tax on those profits before distributing them to you.
How to enter it Enter C-corp distributions as investment income or dividend income — not as work income. This keeps FICA out of the calculation, which is correct. Boldin will apply income tax treatment appropriate to investment income. |
S-Corporation
Salary
If you own and work in an S-corp, the IRS requires you to pay yourself a “reasonable salary” for the work you perform. That salary is W-2 income. The S-corp pays the employer side of FICA; you pay the employee side. This is the same FICA structure as any other W-2 job.
How to enter it Enter your S-corp salary as work income. Boldin will apply 7.65% FICA, plus federal and state income tax. No workaround needed. |
Pass-Through Distributions (K-1)
S-corp profits that pass through to you as a shareholder are reported on a Schedule K-1 (Form 1120-S). These distributions are not subject to FICA — that’s one of the primary tax advantages of the S-corp structure. They are subject to ordinary income tax.
How to enter it Enter your K-1 distributions as other income or pass-through income — not as work income. This correctly excludes FICA while still capturing income tax. If Boldin asks for an income type, use the category that best reflects non-wage, non-investment income. |
Why the salary / distribution split matters The IRS scrutinizes S-corp compensation because owners are incentivized to minimize salary (subject to FICA) and maximize distributions (not subject to FICA). Boldin does not validate your split — that’s between you and your tax advisor. Entering the amounts accurately in the right categories will give you the most accurate plan. |
Still Have Questions?
If your situation is more complex — multiple income streams, business sale proceeds, or a recent change in entity type — our planning team can help you think through how to model it accurately.
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