LLC taxed as S corp vs S corporation in District of Columbia: which costs less (2026)

At $100,000 profit in District of Columbia, an LLC taxed as an S corp costs $26,594 a year in tax and fees and an S corporation costs $26,594. 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 District of Columbia, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000.

District of Columbia, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Biennial Reportdlcp.dc.gov, checked Oct 23, 2026	$150	$150	$0
Payroll tax on your salaryirs.gov, 2026 rates	$6,723	$6,723	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
DC corporation franchise tax on S corporationsotr.cfo.dc.gov, checked Oct 23, 2026	$4,499	$4,499	$0
Federal income taxirs.gov, 2026 rates	$8,750	$8,750	$0
State income taxotr.cfo.dc.gov, checked Oct 23, 2026	$4,672	$4,672	$0
Yearly cost	$26,594	$26,594	+$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	$7,638	$7,638	+$0
$50,000	$12,569	$12,569	+$0
$75,000	$18,263	$18,263	+$0
$100,000	$26,594	$26,594	+$0
$150,000	$45,023	$45,023	+$0
$200,000	$64,244	$64,244	+$0
$300,000	$103,440	$103,440	+$0

Federal and District of Columbia 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 District of Columbia

File the Articles of Incorporation of Domestic Business Corporation (Form DBU-1) with the state: $99 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Biennial Report, $300 every two years, due April 1 every second year, first due April 1 of the year after formation.

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 Articles of Organization (Form DLC-1) and Biennial Report, $300 every two years, a corporation files Articles of Incorporation of Domestic Business Corporation (Form DBU-1) and Biennial Report, $300 every two years.

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 District of Columbia?

Nothing. S corporation costs $0 a year more ($26,594 against $26,594).

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

For federal tax, yes. For District of Columbia fees and paperwork, no: the LLC pays Biennial Report, $300 every two years and the corporation Biennial Report, $300 every two years.

More for District of Columbia

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