StructureCost2026

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

A marketing consultant in Hawaii with $90,000 of profit pays $30,802 a year in tax and fees as a sole proprietor and $33,759 as an LLC taxed as an S corp, with a $63,000 salary. On these figures the S corp does not pay at any profit up to $500,000.

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

+$2,957 a year

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

With these settings the switch does not pay at any profit from $10,000 to $500,000. Setting up costs $50 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.

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

ItemSole propLLC as S corpChange
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$10,440$10,440$0
Self-employment taxirs.gov, 2026 rates$11,241$0−$11,241
Federal income taxirs.gov, 2026 rates$5,305$6,370+$1,065
State income tax, after the PTET creditfiles.hawaii.gov, checked Oct 20, 2026$3,816$2,867−$949
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$0$15+$15
Payroll tax on your salaryirs.gov, 2026 rates$0$11,199+$11,199
State disability and paid leavelabor.hawaii.gov, checked Oct 20, 2026$0$315+$315
Payroll service and tax return (estimate)$0$1,800+$1,800
Hawaii pass-through entity tax, paid by the company (elected)files.hawaii.gov, checked Oct 20, 2026$0$753+$753
Yearly cost$30,802$33,759+$2,957
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$19,367$19,377$21,564$22,397
$90,000$63,000$30,802$30,812$33,759$35,343
$130,000$79,000$48,306$48,316$49,969$54,837

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 Hawaii

  1. File the Articles of Organization (Form LLC-1) with the state: $50 (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 Hawaii 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 Hawaii unemployment tax at 2.4% on the first $64,500 of wages. labor.hawaii.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 Report, $15 a year, due End of the calendar quarter in which the company was registered.

Questions

Should a marketing consultant in Hawaii form an S corp?

At $90,000 of profit, not on these figures: the S corp costs $2,957 a year more than staying a sole proprietor.

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

For tax, a single-member LLC changes nothing: $30,812 a year against $30,802, the difference being Hawaii's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Hawaii
Other states