StructureCost2026

LLC or S corp for a nurse practitioner in Hawaii (2026)

A nurse practitioner in Hawaii with $150,000 of profit pays $55,392 a year in tax and fees as a sole proprietor and $59,236 as an LLC taxed as an S corp, with a $105,000 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

+$3,844 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: $150,000 profit, single filer

ItemSole propLLC as S corpChange
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$14,400$14,400$0
Self-employment taxirs.gov, 2026 rates$19,160$0−$19,160
Federal income taxirs.gov, 2026 rates$14,058$17,338+$3,280
State income tax, after the PTET creditfiles.hawaii.gov, checked Oct 20, 2026$7,774$5,908−$1,866
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$0$15+$15
Payroll tax on your salaryirs.gov, 2026 rates$0$17,661+$17,661
State disability and paid leavelabor.hawaii.gov, checked Oct 20, 2026$0$390+$390
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$1,724+$1,724
Yearly cost$55,392$59,236+$3,844
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
$100,000$70,000$33,619$33,628$36,904$39,107
$150,000$105,000$55,392$55,402$59,236$62,787
$210,000$132,000$82,097$82,105$84,040$91,543

Salary is the BLS median for the job ($132,300), capped at 70% of profit. Revenue 2.4 times profit. Single filer.

What matters for nurse practitioners

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 nurse practitioner in Hawaii form an S corp?

At $150,000 of profit, not on these figures: the S corp costs $3,844 a year more than staying a sole proprietor.

Is an LLC worth it for a nurse practitioner in Hawaii?

For tax, a single-member LLC changes nothing: $55,402 a year against $55,392, 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