LLC or S corp for a personal trainer in District of Columbia (2026)

A personal trainer in District of Columbia with $50,000 of profit pays $13,120 a year in tax and fees as a sole proprietor and $13,048 as an LLC taxed as an S corp, with a $35,000 salary. The S corp starts to pay at about $50,000 of profit.

$72 a year

saved by switching from a sole proprietorship to an LLC taxed as an S corp in District of Columbia, at these numbers.

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $50,000 of profit, with the same settings. Setting up costs $99 once in state filing fees.

District of Columbia, 2026: $50,000 profit, single filer

Item	Sole prop	LLC as S corp	Change
DC unincorporated business franchise taxotr.cfo.dc.gov, checked Oct 23, 2026	$2,475	$0	−$2,475
Self-employment taxirs.gov, 2026 rates	$6,715	$0	−$6,715
Federal income taxirs.gov, 2026 rates	$2,446	$2,883	+$437
State income taxotr.cfo.dc.gov, checked Oct 23, 2026	$1,484	$1,473	−$11
Biennial Reportdlcp.dc.gov, checked Oct 23, 2026	$0	$150	+$150
Payroll tax on your salaryirs.gov, 2026 rates	$0	$5,921	+$5,921
Payroll service and tax return (estimate)	$0	$1,800	+$1,800
DC corporation franchise tax on S corporationsotr.cfo.dc.gov, checked Oct 23, 2026	$0	$821	+$821
Yearly cost	$13,120	$13,048	−$72

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	$9,847	$9,953	$10,119	$10,944
$50,000	$35,000	$13,120	$13,228	$13,048	$14,087
$80,000	$47,000	$23,017	$23,124	$21,061	$23,747

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.
District of Columbia does not follow the S election and taxes the company as a corporation; the figures include that.
An S corp here adds DC corporation franchise tax on S corporations.

What the switch takes in District of Columbia

File the Articles of Organization (Form DLC-1) with the state: $99 (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.
District of Columbia does not follow the S election: the state taxes the company as a corporation, which the figures above include.
Register with District of Columbia 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 District of Columbia unemployment tax at 2.7% on the first $9,000 of wages. does.dc.gov See what payroll costs.
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. New for you: DC corporation franchise tax on S corporations.

Questions

Should a personal trainer in District of Columbia form an S corp?

At $50,000 of profit, yes on these figures: an LLC taxed as an S corp costs $13,048 a year against $13,120 as a sole proprietor, $72 less.

Is an LLC worth it for a personal trainer in District of Columbia?

For tax, a single-member LLC changes nothing: $13,228 a year against $13,120, the difference being District of Columbia's LLC fees. It separates business liability and is the base for an S corp election.

Other professions in District of Columbia

Other states