LLC taxed as S corp vs S corporation in Arkansas: which costs less (2026)

At $100,000 profit in Arkansas, an LLC taxed as an S corp costs $20,848 a year in tax and fees and an S corporation costs $20,848. On these figures an S corporation does not cost less at any profit up to $500,000.

+$0 a year

more for an S corporation than an LLC taxed as an S corp in Arkansas, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000. As an S corporation this uses the state's pass-through entity tax election, which lowers the cost here.

Arkansas, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Payroll tax on your salaryirs.gov, 2026 rates	$6,302	$6,302	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Arkansas LLC franchise taxsos.arkansas.gov, checked Oct 23, 2026	$150	$0	−$150
Arkansas pass-through entity tax, paid by the company (elected)dfa.arkansas.gov, checked Oct 23, 2026	$2,028	$2,028	$0
Federal income taxirs.gov, 2026 rates	$9,259	$9,259	$0
State income tax, after the PTET exclusiondfa.arkansas.gov, checked Oct 23, 2026	$1,309	$1,309	$0
Arkansas corporation franchise taxsos.arkansas.gov, checked Oct 23, 2026	$0	$150	+$150
Yearly cost	$20,848	$20,848	+$0

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

Yearly cost at each profit level

Profit	LLC as S corp	S corp	Difference
$30,000	$7,543	$7,543	+$0
$50,000	$11,097	$11,097	+$0
$75,000	$14,333	$14,333	+$0
$100,000	$20,848	$20,848	+$0
$150,000	$34,974	$34,974	+$0
$200,000	$49,892	$49,892	+$0
$300,000	$82,292	$82,292	+$0

Federal and Arkansas tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is S corporation minus LLC taxed as an S corp.

What the switch takes in Arkansas

File the Articles of Incorporation (Form DN-01) with the state: $45 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Corporation Franchise Tax Report, no fee, due May 1, starting the year after formation. New for you: Arkansas corporation franchise tax.

What changes between the two

Both are taxed the same way by the IRS once the election is made: salary with payroll tax, the rest as a distribution, one Form 1120-S. The difference is state law: an LLC files Certificate of Organization (Form LL-01) and Annual LLC Franchise Tax Report, no fee, a corporation files Articles of Incorporation (Form DN-01) and Annual Corporation Franchise Tax Report, no fee, and the entity taxes differ: Arkansas LLC franchise tax, Arkansas corporation franchise tax.

A corporation also has formalities an LLC skips: a board, bylaws, share records and yearly minutes. Most one-person businesses pick the LLC route for that reason.

Questions

How much does it save at $100,000 in Arkansas?

Nothing. S corporation costs $0 a year more ($20,848 against $20,848).

Is an LLC taxed as an S corp the same as an S corp?

For federal tax, yes. For Arkansas fees and paperwork, no: the LLC pays Annual LLC Franchise Tax Report, no fee and the corporation Annual Corporation Franchise Tax Report, no fee.

More for Arkansas

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