LLC vs S corp in Connecticut: which costs less (2026)
At $100,000 profit in Connecticut, a single-member LLC costs $25,952 a year in tax and fees and an LLC taxed as an S corp costs $21,746. An LLC taxed as an S corp starts to cost less from about $52,500 of profit.
$4,206 a year
saved by switching from a single-member LLC to an LLC taxed as an S corp in Connecticut, at these numbers.
Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $52,500 of profit, with the same settings. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.
Connecticut, 2026: $100,000 profit, single filer
| Item | LLC | LLC as S corp | Change |
|---|---|---|---|
| Annual Reportbusiness.ct.gov, checked Oct 20, 2026 | $80 | $80 | $0 |
| Self-employment taxirs.gov, 2026 rates | $14,118 | $0 | −$14,118 |
| Federal income taxirs.gov, 2026 rates | $8,222 | $8,892 | +$670 |
| State income tax, after the PTET creditportal.ct.gov, checked Oct 20, 2026 | $3,532 | $289 | −$3,243 |
| Payroll tax on your salaryirs.gov, 2026 rates | $0 | $6,675 | +$6,675 |
| State disability and paid leavectpaidleave.org, checked Oct 20, 2026 | $0 | $200 | +$200 |
| Payroll service and tax return (estimate) | $0 | $1,800 | +$1,800 |
| Connecticut pass-through entity tax, paid by the company (elected)portal.ct.gov, checked Oct 20, 2026 | $0 | $3,810 | +$3,810 |
| Yearly cost | $25,952 | $21,746 | −$4,206 |
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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 | LLC as S corp | Difference |
|---|---|---|---|
| $30,000 | $5,571 | $7,338 | +$1,767 |
| $50,000 | $10,956 | $11,173 | +$217 |
| $75,000 | $17,811 | $14,751 | −$3,060 |
| $100,000 | $25,952 | $21,746 | −$4,206 |
| $150,000 | $43,873 | $37,022 | −$6,851 |
| $200,000 | $62,491 | $53,221 | −$9,270 |
| $300,000 | $107,497 | $88,277 | −$19,220 |
Federal and Connecticut tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is LLC taxed as an S corp minus Single-member LLC.
What the switch takes in Connecticut
- 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 Connecticut 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 Connecticut unemployment tax at 1.9% on the first $27,000 of wages. portal.ct.gov See what payroll costs.
- Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
- State upkeep each year: Annual Report, $80 a year, due Between January 1 and March 31 each year.
What changes between the two
A plain LLC pays self-employment tax of 15.3% on 92.35% of all profit, up to the Social Security wage base of $184,500. Taxed as an S corp, the business pays you a salary, and only the salary carries Social Security and Medicare tax. The rest comes out as a distribution.
The election adds costs: a payroll service, a separate business tax return (Form 1120-S), federal and Connecticut unemployment tax on the salary. The calculator counts $1,800 a year for payroll and the return. The IRS expects a reasonable salary for the work, so it cannot be set near zero.
Questions
At what profit does an S corp election pay in Connecticut?
About $52,500 a year, on the default salary (40% of profit, at least $30,000 where profit allows) and $1,800 of yearly payroll and return costs. Change the salary in the calculator to see how the point moves.
How much does it save at $100,000 in Connecticut?
$4,206 a year: Single-member LLC $25,952, LLC taxed as an S corp $21,746.
Does Connecticut recognise the S corp election?
Yes. No separate state form is needed.
More for Connecticut
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- What an LLC costs in Connecticut
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