LLC vs S corp in Florida: which costs less (2026)

At $100,000 profit in Florida, a single-member LLC costs $22,461 a year in tax and fees and an LLC taxed as an S corp costs $17,900. An LLC taxed as an S corp starts to cost less from about $50,000 of profit.

$4,561 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in Florida, at these numbers.

Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $50,000 of profit, with the same settings.

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

Item	LLC	LLC as S corp	Change
Annual Reportdos.fl.gov, checked Oct 20, 2026	$139	$139	$0
Self-employment taxirs.gov, 2026 rates	$14,110	$0	−$14,110
Federal income taxirs.gov, 2026 rates	$8,212	$9,610	+$1,398
Payroll tax on your salaryirs.gov, 2026 rates	$0	$6,351	+$6,351
Payroll service and tax return (estimate)	$0	$1,800	+$1,800
Yearly cost	$22,461	$17,900	−$4,561

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	$5,290	$6,792	+$1,502
$50,000	$9,839	$9,671	−$168
$75,000	$15,602	$12,071	−$3,531
$100,000	$22,461	$17,900	−$4,561
$150,000	$37,705	$30,466	−$7,239
$200,000	$53,540	$43,792	−$9,748
$300,000	$92,175	$73,408	−$18,767

Federal and Florida 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 Florida

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 Florida 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 Florida unemployment tax at 2.7% on the first $7,000 of wages. floridarevenue.com 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, $139 a year, due Between January 1 and May 1, starting the year after formation.

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 Florida 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 Florida?

About $50,000 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 Florida?

$4,561 a year: Single-member LLC $22,461, LLC taxed as an S corp $17,900.

Does Florida recognise the S corp election?

Yes. No separate state form is needed.

More for Florida

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