Lettuce Review: The Financial Operating System for Solopreneurs
Solopreneurs overpay taxes. A lot. Those earning $100,000 or more typically overpay by around $15,000 annually because they don’t have the S Corp structure and tax strategies that larger businesses use automatically.
Lettuce exists to fix this. It’s a financial operating system that handles S Corp formation, payroll, taxes, and bookkeeping for businesses of one—automating the corporate advantages that traditionally required an accountant and multiple software tools.
This review covers what Lettuce actually does, who it’s for, and whether the $299/month price tag makes financial sense for your situation.
What Is Lettuce?
Lettuce is an AI-powered financial platform built specifically for solopreneurs—freelancers, consultants, creators, and anyone running a one-person business. Founded in 2023 and based in San Francisco, the company recently raised $28 million to expand its platform.
The core value proposition: reduce your tax burden through S Corp election while automating the complexity that typically requires.
The traditional solopreneur approach:
- File as sole proprietor or single-member LLC
- Pay 15.3% self-employment tax on all profit
- Cobble together QuickBooks, a bank account, and an accountant
- Hope you’re making quarterly estimated payments correctly
- Scramble at tax time
The Lettuce approach:
- Form an S Corp (or convert your LLC)
- Pay yourself a “reasonable salary” (with proper payroll taxes)
- Take remaining profit as distributions (no self-employment tax)
- Lettuce handles all payroll, filings, and bookkeeping automatically
The S Corp structure can save thousands annually—but only if you earn enough to justify the administrative overhead. Lettuce handles that overhead.
How the S Corp Tax Savings Works
This is the core reason Lettuce exists, so it’s worth understanding.
As a sole proprietor or single-member LLC: You pay 15.3% self-employment tax on your entire net profit. Earn $150,000? That’s roughly $23,000 in self-employment tax alone, before income tax.
As an S Corp: You pay yourself a reasonable salary (say $70,000) and take the remaining $80,000 as a distribution. Self-employment tax only applies to the salary portion. Distributions are not subject to self-employment tax.
The math:
- Self-employment tax on $70,000 salary: ~$10,700
- Self-employment tax on $80,000 distribution: $0
- Savings: ~$12,200
The IRS requires your salary be “reasonable” for the work you do—you can’t pay yourself $10,000 and take $140,000 in distributions. But with proper structuring, the savings are substantial.
Lettuce automates this entire structure: S Corp formation, payroll processing, tax withholding, quarterly filings, and year-end tax returns.
Lettuce Core Features
S Corp Formation and Management
Lettuce handles the legal and administrative setup:
- Entity formation: Creates your S Corp or helps convert existing LLC
- Registered agent: Maintains required legal presence
- State compliance: Annual reports and filings
- Ongoing maintenance: Everything required to keep S Corp status valid
For Lettuce Pro customers, all formation fees are covered—no upfront payment required.
Automated Payroll
Running payroll as a solopreneur is typically annoying. You need payroll software, you need to file forms, you need to make tax deposits on schedule.
Lettuce processes this automatically:
- Monthly payroll: Pays your salary and withholds appropriate taxes
- Tax deposits: Makes required federal and state deposits
- Quarterly filings: Files 941 forms and state equivalents
- Year-end documents: Generates your W-2 and K-1
You don’t interact with payroll directly—it happens in the background. At year end, Lettuce balances your salary and distributions based on total income.
Tax Management
Beyond payroll taxes, Lettuce handles:
- Quarterly estimates: Calculates and reminds you of estimated payments
- Business tax returns: Prepares and files S Corp returns (Form 1120-S)
- Personal tax support: Provides W-2 and K-1 for your personal return
- Audit protection: If audited, Lettuce defends their work at no cost
The platform tracks deductions throughout the year, so you’re not scrambling to find expenses in April.
Bookkeeping
Lettuce provides ongoing bookkeeping:
- Transaction categorization: Auto-categorizes income and expenses
- Bank connections: Syncs with external accounts
- Real-time P&L: See profitability at any time
- Expense tracking: Captures and organizes receipts
This isn’t full-service bookkeeping with a human reviewing everything—it’s automated categorization with AI assistance. You’ll occasionally need to fix miscategorized transactions.
LettuceHead AI
The platform includes an AI assistant that answers tax and business questions conversationally. Need to know if a purchase is deductible? Ask. Want to understand how a decision affects your taxes? Ask.
This isn’t a replacement for professional advice on complex matters, but it handles the routine questions that would otherwise require an accountant call or Google search.
Healthcare Benefits (New)
Through the acquisition of Besolo, Lettuce now offers access to health, dental, vision, and life insurance options. Solopreneurs often struggle to find affordable coverage—this addresses a real pain point.
Lettuce Pricing
Lettuce offers two tiers:
Lettuce Grow - $99/month
For solopreneurs not yet ready for S Corp election:
- Automated tax withholding
- Bookkeeping and expense tracking
- Invoicing
- Personal income tax filing
- Tax planning support
Best for: Freelancers earning under $70,000 or those who want to test the platform before S Corp conversion.
Lettuce Pro - $299/month
The full S Corp solution:
- Everything in Grow
- S Corp formation and maintenance
- Automated payroll
- Quarterly and annual tax filings
- Business tax return preparation
- Audit defense guarantee
Best for: Solopreneurs earning $70,000+ who will save more in taxes than the subscription costs.
The Break-Even Point
At around $70,000 in annual earnings, your S Corp tax savings typically exceed the $3,588 annual cost of Lettuce Pro ($299 x 12). As income increases, savings increase proportionally while the subscription stays flat.
At $150,000 in earnings, you might save $10,000-15,000 in taxes while paying $3,588 for Lettuce—a clear win.
Money-Back Guarantee
Lettuce Pro includes a savings guarantee: if you don’t save on taxes, they refund your fees. This removes the risk of paying for a service that doesn’t deliver value.
Tax Deductibility
The subscription itself is a business expense, effectively reducing the cost by 20-30% depending on your tax bracket.
Lettuce Pros and Cons
Pros
Significant tax savings: S Corp structure genuinely reduces self-employment tax for qualifying earners.
True automation: Payroll, tax deposits, and filings happen without manual intervention.
All-in-one platform: Replaces multiple tools (payroll, bookkeeping, tax prep).
Savings guarantee: Money back if you don’t save on taxes.
Audit protection: They defend their work at no additional cost.
Modern interface: Clean, intuitive design versus legacy accounting software.
Healthcare access: Insurance options through Besolo acquisition.
Cons
Price: $299/month is significant for early-stage freelancers.
US only: No international support.
S Corp complexity: The structure has requirements (reasonable salary, state taxes) that some prefer to avoid.
Newer platform: Founded 2023, less track record than established alternatives.
Automated bookkeeping limitations: AI categorization isn’t perfect; requires occasional manual fixes.
Not for everyone: Doesn’t make sense below ~$70,000 earnings threshold.
Who Should Use Lettuce
Ideal For
- Freelancers and consultants earning $70,000+ where S Corp savings exceed subscription cost
- Solo founders with revenue but no employees
- Creators and content producers with self-employment income
- Solopreneurs tired of tax complexity who want one platform
- Those currently overpaying self-employment tax as sole proprietors
Not Ideal For
- Earners under $70,000 (savings won’t justify cost)
- Businesses with employees (Lettuce is designed for solo operations)
- Those preferring human accountants (this is primarily automated)
- International solopreneurs (US only)
- Complex entity structures (multiple businesses, partnerships)
- Those who enjoy doing their own taxes (the DIY approach costs less)
Lettuce vs Competitors
Lettuce vs Collective
Collective is the closest competitor, also offering S Corp services for solopreneurs.
| Feature | Lettuce | Collective |
|---|---|---|
| Monthly cost | $299 | $299+ |
| S Corp formation | Included | Included |
| Payroll | Automated | Automated |
| Bookkeeping | AI-automated | Human + software |
| Tax filing | Included | Included |
| Healthcare | Yes (Besolo) | Yes |
| Approach | Tech-first | Human-assisted |
Choose Lettuce if: You prefer automated systems and modern interfaces.
Choose Collective if: You want more human touchpoints in the process.
Lettuce vs QuickBooks Self-Employed + Accountant
The traditional approach: use QuickBooks for bookkeeping, hire an accountant for taxes.
| Aspect | Lettuce Pro | QB + Accountant |
|---|---|---|
| Monthly cost | $299 | ~$15 + accountant fees |
| Annual total | ~$3,600 | ~$2,000-5,000 |
| S Corp setup | Included | Separate cost |
| Payroll | Automated | Separate service |
| Coordination | One platform | Multiple tools |
| Tax planning | Ongoing | Periodic |
Choose Lettuce if: You want everything integrated and automated.
Choose traditional approach if: You have an accountant relationship you trust and don’t mind managing multiple systems.
Lettuce vs Doing It Yourself
Some solopreneurs handle S Corp administration themselves using separate payroll services (Gusto, Wave) and tax software.
| Aspect | Lettuce | DIY |
|---|---|---|
| Cost | $299/month | ~$50-100/month + time |
| Time required | Minimal | Several hours monthly |
| Error risk | Low (automated) | Higher (manual) |
| Learning curve | None | Significant |
| Audit risk | Lower (professional prep) | Higher |
Choose Lettuce if: Your time is worth more than the cost difference.
Choose DIY if: You enjoy financial administration and want to save money.
Getting Started with Lettuce
Application Process
- Sign up online: Basic information about you and your business
- Income verification: Connect accounts or provide documentation
- Entity assessment: Lettuce evaluates if S Corp makes sense
- Formation: If proceeding, Lettuce handles S Corp setup
- Onboarding: Connect bank accounts, set up payroll
The process takes a few weeks for S Corp formation, depending on your state.
First Month Priorities
Week 1:
- Connect all business bank accounts and credit cards
- Review initial transaction categorization
- Understand the dashboard and reports
Week 2:
- Ensure income sources are properly tracking
- Set up any recurring expenses
- Ask questions via LettuceHead AI
Week 3-4:
- First payroll processes automatically
- Review payroll summary
- Verify tax withholdings look correct
Ongoing:
- Check dashboard monthly for accuracy
- Respond to any categorization questions
- Quarterly: review estimated tax situation
Common Questions
Is S Corp election right for everyone?
No. Below roughly $70,000 in annual earnings, the administrative costs and complexity outweigh the tax savings. Lettuce Grow ($99/month) serves those not yet ready for S Corp.
What’s a “reasonable salary”?
The IRS requires S Corp owners pay themselves a salary reasonable for the work performed. This varies by industry and role. Lettuce helps determine appropriate salary levels to maximize savings while staying compliant.
Can I switch from sole proprietor to S Corp?
Yes. Lettuce handles the conversion, including any existing LLC-to-S-Corp election.
What if I have a bad year?
S Corp election can be reconsidered annually. If your income drops significantly, you can revert to simpler structures. Lettuce helps navigate these decisions.
Does Lettuce replace my accountant entirely?
For most solopreneur tax situations, yes. Complex situations (multiple businesses, investment income, etc.) might still benefit from additional professional advice.
What about state taxes?
Lettuce handles state tax filings where applicable. Some states have specific S Corp requirements or taxes—Lettuce manages compliance.
Verdict: Is Lettuce Worth It?
For solopreneurs earning $70,000+ who are currently paying full self-employment tax, Lettuce likely pays for itself through tax savings. The math is straightforward: if you save $10,000+ in taxes while paying $3,600 for the service, you’re ahead.
The bottom line:
- Worth it if: You earn $70K+ as a solopreneur, hate tax complexity, and want automated S Corp administration
- Not worth it if: You earn under $70K, prefer human accountants, or enjoy managing finances yourself
The money-back guarantee removes the risk of trying Lettuce Pro. If you don’t save on taxes, you get refunded. That’s a fair proposition for a service that genuinely saves most qualifying users thousands of dollars annually.
For solopreneurs stuck in the sole-proprietor trap—overpaying taxes while struggling with bookkeeping—Lettuce solves a real problem with modern automation.