StructureCost2026

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

A personal trainer in Delaware with $50,000 of profit pays $11,798 a year in tax and fees as a sole proprietor and $12,744 as an LLC taxed as an S corp, with a $35,000 salary. The S corp starts to pay at about $287,500 of profit.

More settings revenue, salary, filing status, payroll costs, PTET

+$946 a year

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

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $287,500 of profit, with the same settings. Setting up costs $110 once in state filing fees.

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

ItemSole propLLC as S corpChange
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75$75$0
Self-employment taxirs.gov, 2026 rates$7,054$0−$7,054
Federal income taxirs.gov, 2026 rates$2,661$2,962+$301
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$2,008$1,920−$88
Payroll tax on your salaryirs.gov, 2026 rates$0$5,587+$5,587
Payroll service and tax return (estimate)$0$1,800+$1,800
Delaware annual LLC taxcorp.delaware.gov, checked Oct 23, 2026$0$400+$400
Yearly cost$11,798$12,744+$946
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

ProfitSalary usedSole propLLCLLC as S corpC corp
$40,000$28,000$8,976$9,265$10,072$11,328
$50,000$35,000$11,798$12,086$12,744$14,404
$80,000$47,000$20,376$20,660$19,588$23,948

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

What the switch takes in Delaware

  1. File the Certificate of Formation with the state: $110 (fee).
  2. Get an EIN from the IRS (free, online) and open a business bank account in the new name.
  3. 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
  4. 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.
  5. Register with Delaware 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 Delaware unemployment tax at 1% on the first $14,500 of wages. labor.delaware.gov See what payroll costs.
  6. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  7. State upkeep each year: no yearly report fee, due Annual LLC tax due June 1 for the prior year. New for you: Delaware annual LLC tax.

Questions

Should a personal trainer in Delaware form an S corp?

At $50,000 of profit, not on these figures: the S corp costs $946 a year more than staying a sole proprietor.

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

For tax, a single-member LLC changes nothing: $12,086 a year against $11,798, the difference being Delaware's LLC fees and LLC taxes. It separates business liability and is the base for an S corp election.

More

Other professions in Delaware
Other states