What going 1099 could save you.

At a W-2 shop you can't deduct what you spend running your business. At ARBOR you're paid 1099 and can run it through an S-Corp. Here's the honest 2026 math, including the extra payroll tax and S-Corp costs.

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1Your income

2Your S-Corp setup

An S-Corp pays you a reasonable salary through payroll; the rest comes out as distributions with no payroll tax.

3Business expenses you'd deduct

What a producing LO typically spends. Turn off anything you wouldn't spend.

Deductions you get as an S-Corp

Talk to us about your numbers

Illustrative 2026 federal estimate, not tax advice. Uses 2026 IRS brackets and standard deduction (Rev. Proc. 2025-32), the $184,500 Social Security wage base, the 0.9% Additional Medicare Tax, 2026 retirement limits (Notice 2025-67) and the 72.5¢ mileage rate. Mortgage brokering is a specified service business for the QBI deduction (Treas. Reg. §1.199A-5(b)(2)(ix)), so QBI phases out at higher incomes. Assumes you are the household's only earner, health insurance is pre-tax either way, and business expenses are spent either way but only deductible through the S-Corp. Excludes state tax (some states tax S-Corps, e.g. California 1.5%). Salary must be reasonable for your role. Confirm with a CPA before electing S-Corp status. ARBOR Financial Group, NMLS #236669.