Terms of Service & Calculation Disclaimer
Please read these Terms of Service carefully before utilizing SOLOTAX LAB (getsolotax.com). By accessing our website, simulators, or educational tax calculators, you agree to be bound by the terms, conditions, and disclaimers set forth below.
SOLOTAX LAB is an educational financial modeling tool, not a Certified Public Accounting (CPA) firm, law firm, or enrolled tax preparation service. All outputs are mathematical approximations based on generalized statutory formulas. Nothing on this website constitutes legal, investment, or certified tax advice. You are solely responsible for verifying figures with a licensed CPA prior to executing corporate elections.
1. Acceptance of Terms
By viewing, interacting with, or sharing results from SOLOTAX LAB, you agree to comply with and be legally bound by these Terms of Service. If you do not agree with any part of these terms, your sole remedy is to discontinue use of the website and its calculators immediately.
2. Educational Modeling & Mathematical Scope
Our tax arbitrage models estimate self-employment tax (FICA/SECA under IRC § 1401), federal income tax brackets, Section 199A Qualified Business Income (QBI) deductions, and state-level taxes based on publicly published IRS tax brackets for the 2026/2027 tax years:
- Hypothetical Simulations: Calculations do not reflect individual nuances such as spouse W-2 wages, net operating loss (NOL) carryovers, Alternative Minimum Tax (AMT), local municipal income taxes, capital gains/losses, or foreign tax credits.
- Dynamic Tax Legislation: Federal and state tax codes are subject to legislative revisions, inflation adjustments, and administrative rulings. We do not guarantee that formulas are error-free or updated instantaneously upon statutory amendment.
- Zero Guarantees: Estimated net savings displayed on this website do not represent guaranteed cash savings or a legal assurance of tax minimization.
3. IRS Reasonable Compensation Warning
Under IRS Revenue Ruling 59-221, IRC § 3121, and seminal federal tax court rulings (including David E. Watson, P.C. v. United States and Glass Blocks Unlimited v. Commissioner), S-Corporation shareholder-employees who perform more than minor services are legally required to receive "reasonable compensation" in the form of W-2 payroll wages subject to employment taxes before distributing profits as dividends.
The reasonable salary percentages modeled in SOLOTAX LAB (e.g., 40%–60% of net profits) are illustrative benchmarks commonly referenced by small business accounting practitioners. The IRS does not establish safe-harbor percentage rules. True reasonable compensation must be determined based on specific job responsibilities, geographic market wages, professional training, and time dedicated to the business. Setting compensation artificially low to evade FICA taxes may result in IRS reclassification, back payroll taxes, substantial failure-to-pay penalties, and interest charges.
4. Professional Disclaimer & Non-Fiduciary Relationship
No attorney-client, CPA-client, or fiduciary relationship is created by accessing, using, or interacting with SOLOTAX LAB. The site operators are not acting as tax return preparers within the meaning of IRC § 7701(a)(36). You should never execute an IRS Form 2553 election, alter payroll withholdings, or form a business entity without formal consultation with a licensed CPA, Enrolled Agent, or business attorney.
5. Third-Party Products & Affiliate Relationships
SOLOTAX LAB features links to third-party tools, corporate formation services, and payroll processors (such as Gusto, Collective, Doola, Northwest Registered Agent, and QuickBooks). Please note:
- We may receive commercial affiliate commissions if you register through referral links on our site (see our Privacy Policy).
- We do not operate, control, endorse, or guarantee the performance, security, pricing, customer service, or compliance of third-party platforms.
- Any purchase or engagement with a third-party vendor is governed exclusively by that vendor's terms and conditions.
6. Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL SOLOTAX LAB, ITS AUTHORS, FOUNDERS, CONTRIBUTORS, OR AFFILIATES BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO:
- Federal, state, or municipal tax penalties, statutory interest, or tax liens.
- IRS audit expenses, CPA audit representation fees, or administrative penalties.
- Lost profits, business interruption, or entity formation/dissolution costs.
- Inaccuracies, errors, omissions, or software downtime in our calculation models.
YOUR USE OF THIS SIMULATOR AND RELIANCE ON ANY CALCULATION RESULT IS AT YOUR SOLE AND EXCLUSIVE RISK.
7. Intellectual Property
All site designs, algorithmic code, SVG visualizations, editorial articles, and logos are the intellectual property of SOLOTAX LAB. You may not scrape, frame, reverse-engineer, or duplicate this simulator for commercial redistribution without express written consent.
8. Governing Law & Contact
These Terms of Service are governed by and construed in accordance with the laws of the United States. If you have questions regarding these terms, reach out to our legal desk at [email protected] or visit our Contact page.