StructureCost2026

LLC or S corp for a marketing consultant in Georgia (2026)

A marketing consultant in Georgia with $90,000 of profit pays $22,741 a year in tax and fees as a sole proprietor and $23,570 as an LLC taxed as an S corp, with a $63,000 salary. The S corp starts to pay at about $272,500 of profit.

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

+$829 a year

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

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $272,500 of profit, with the same settings. Setting up costs $110 once in state filing fees. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

Georgia, 2026: $90,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$12,717$0−$12,717
Federal income taxirs.gov, 2026 rates$6,599$8,378+$1,779
State income tax, after the PTET exclusiondor.georgia.gov, checked Oct 24, 2026$3,425$2,395−$1,030
Annual Registrationsos.ga.gov, checked Oct 24, 2026$0$60+$60
Payroll tax on your salaryirs.gov, 2026 rates$0$9,938+$9,938
Payroll service and tax return (estimate)$0$1,800+$1,800
Georgia pass-through entity tax, paid by the company (elected)gov.georgia.gov, checked Oct 24, 2026$0$999+$999
Yearly cost$22,741$23,570+$829
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
$60,000$42,000$14,071$14,114$14,574$16,558
$90,000$63,000$22,741$22,780$23,570$27,309
$130,000$79,000$36,790$36,829$35,283$43,206

Salary is the BLS median for the job ($78,760), capped at 70% of profit. Revenue 2.9 times profit. Single filer.

What matters for marketing consultants

What the switch takes in Georgia

  1. File the Articles of Organization (Form CD 030) 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 Georgia 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 Georgia unemployment tax at 2.64% on the first $9,500 of wages. gov.georgia.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: Annual Registration, $60 a year, due Between January 1 and April 1, starting the year after formation.

Questions

Should a marketing consultant in Georgia form an S corp?

At $90,000 of profit, not on these figures: the S corp costs $829 a year more than staying a sole proprietor.

Is an LLC worth it for a marketing consultant in Georgia?

For tax, a single-member LLC changes nothing: $22,780 a year against $22,741, the difference being Georgia's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Georgia
Other states