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

At $100,000 profit in Delaware, an LLC taxed as an S corp costs $23,179 a year in tax and fees and an S corporation costs $23,046. An S corporation starts to cost less from about $10,000 of profit.

$133 a year

saved by switching from an LLC taxed as an S corp to an S corporation in Delaware, at these numbers.

Switching from an LLC taxed as an S corp to an S corporation starts to pay at about $10,000 of profit, with the same settings.

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

Item	LLC as S corp	S corp	Change
Payroll tax on your salaryirs.gov, 2026 rates	$6,352	$6,352	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Delaware annual LLC taxcorp.delaware.gov, checked Oct 23, 2026	$400	$0	−$400
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026	$75	$75	$0
Federal income taxirs.gov, 2026 rates	$9,550	$9,581	+$31
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026	$5,002	$5,013	+$11
Annual Franchise Tax Reportcorp.delaware.gov, checked Oct 23, 2026	$0	$50	+$50
Delaware corporate franchise tax (minimum)corp.delaware.gov, checked Oct 23, 2026	$0	$175	+$175
Yearly cost	$23,179	$23,046	−$133

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	$7,968	$7,816	−$152
$50,000	$11,918	$11,769	−$149
$75,000	$15,778	$15,632	−$146
$100,000	$23,179	$23,046	−$133
$150,000	$38,939	$38,809	−$130
$200,000	$55,465	$55,334	−$131
$300,000	$90,914	$90,791	−$123

Federal and Delaware 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 Delaware

File the Certificate of Incorporation with the state: $109 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Franchise Tax Report, $50 a year, due March 1 for the prior year. New for you: Delaware corporate franchise tax (minimum).

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 Formation and no yearly report fee, a corporation files Certificate of Incorporation and Annual Franchise Tax Report, $50 a year, and the entity taxes differ: Delaware annual LLC tax, Delaware corporate franchise tax (minimum).

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 Delaware?

$133 a year: LLC taxed as an S corp $23,179, S corporation $23,046.

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

For federal tax, yes. For Delaware fees and paperwork, no: the LLC pays no yearly report fee and the corporation Annual Franchise Tax Report, $50 a year.

More for Delaware

Common cases in Delaware

Other states