LLC or S corp for a personal trainer in California (2026)

A personal trainer in California with $50,000 of profit pays $10,726 a year in tax and fees as a sole proprietor and $12,461 as an LLC taxed as an S corp, with a $35,000 salary. The S corp starts to pay at about $307,500 of profit.

+$1,735 a year

more for an LLC taxed as an S corp than a sole proprietorship in California, at these numbers.

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $307,500 of profit, with the same settings. Setting up costs $70 once in state filing fees. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

California, 2026: $50,000 profit, single filer

Item	Sole prop	LLC as S corp	Change
Self-employment taxirs.gov, 2026 rates	$7,065	$0	−$7,065
Federal income taxirs.gov, 2026 rates	$2,667	$2,841	+$174
State income tax, after the PTET creditftb.ca.gov, checked Oct 23, 2026	$994	$36	−$958
Statement of Information (Form LLC-12)sos.ca.gov, checked Oct 23, 2026	$0	$10	+$10
Payroll tax on your salaryirs.gov, 2026 rates	$0	$5,642	+$5,642
State disability and paid leaveedd.ca.gov, checked Oct 23, 2026	$0	$455	+$455
Payroll service and tax return (estimate)	$0	$1,800	+$1,800
California S corporation tax (1.5%)ftb.ca.gov, checked Oct 23, 2026	$0	$800	+$800
California pass-through entity tax, paid by the company (elected)ftb.ca.gov, checked Oct 23, 2026	$0	$877	+$877
Yearly cost	$10,726	$12,461	+$1,735

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.

At three profit levels

Profit	Salary used	Sole prop	LLC	LLC as S corp	C corp
$40,000	$28,000	$8,050	$8,643	$9,927	$10,836
$50,000	$35,000	$10,726	$11,319	$12,461	$13,767
$80,000	$47,000	$19,523	$20,086	$19,275	$23,547

Salary is the BLS median for the job ($47,160), capped at 70% of profit. Revenue 1.3 times profit. Single filer.

What matters for personal trainers

This work is not a specified service trade or business, so the 20% QBI deduction stays available above the income limit, subject to the wage limit. Athletics under Treas. Reg. 1.199A-5(b)(2)(viii) covers people who take part in athletic competition, and health under (b)(2)(ii) excludes health clubs, so training clients is not a specified service. law.cornell.edu
Pay figure is for exercise trainers and group fitness instructors. Many trainers work on 1099 terms at gyms, and liability insurance matters more than the entity for injury claims.
An S corp here adds California S corporation tax (1.5%).

What the switch takes in California

File the Articles of Organization (Form LLC-1) with the state: $70 (fee).
Get an EIN from the IRS (free, online) and open a business bank account in the new name.
Check the business can elect: no more than 100 shareholders, all of them US citizens or residents (no nonresident alien owners), and one class of stock. IRS
File IRS Form 2553 to elect S corp tax treatment, within 2 months and 15 days of the start of the tax year it should apply to. See how the S corp election works.
Register with California as an employer and run payroll for your own salary: federal Forms 941 each quarter, Form 940 and a W-2 each year. New employers pay California unemployment tax at 3.4% on the first $7,000 of wages. edd.ca.gov See what payroll costs.
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Statement of Information (Form LLC-12), $20 every two years, due within 90 days of formation, then every two years by the end of the registration month. New for you: California S corporation tax (1.5%).

Questions

Should a personal trainer in California form an S corp?

At $50,000 of profit, not on these figures: the S corp costs $1,735 a year more than staying a sole proprietor.

Is an LLC worth it for a personal trainer in California?

For tax, a single-member LLC changes nothing: $11,319 a year against $10,726, the difference being California's LLC fees and LLC taxes. It separates business liability and is the base for an S corp election.

Other professions in California

Other states