StructureCost2026

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

At $100,000 profit in Idaho, a single-member LLC costs $26,182 a year in tax and fees and an LLC taxed as an S corp costs $21,383. An LLC taxed as an S corp starts to cost less from about $50,000 of profit.

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

$4,799 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in Idaho, 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. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

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

ItemLLCLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$14,130$0−$14,130
Federal income taxirs.gov, 2026 rates$8,235$9,082+$847
State income tax, after the PTET creditlegislature.idaho.gov, checked Oct 23, 2026$3,817$1,012−$2,805
Payroll tax on your salaryirs.gov, 2026 rates$0$6,562+$6,562
Payroll service and tax return (estimate)$0$1,800+$1,800
Idaho permanent building fund taxtax.idaho.gov, checked Oct 23, 2026$0$10+$10
Idaho S corporation minimum taxtax.idaho.gov, checked Oct 23, 2026$0$20+$20
Idaho pass-through entity tax, paid by the company (elected)tax.thomsonreuters.com, checked Oct 23, 2026$0$2,897+$2,897
Yearly cost$26,182$21,383−$4,799
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

ProfitLLCLLC as S corpDifference
$30,000$5,550$7,002+$1,452
$50,000$11,087$10,899−$188
$75,000$18,081$14,497−$3,584
$100,000$26,182$21,383−$4,799
$150,000$43,887$36,321−$7,566
$200,000$62,174$51,927−$10,247
$300,000$106,098$85,511−$20,587

Federal and Idaho 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 Idaho

  1. 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
  2. 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.
  3. Register with Idaho 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 Idaho unemployment tax at 1% on the first $58,300 of wages. labor.idaho.gov See what payroll costs.
  4. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  5. State upkeep each year: Annual Report, no fee, due End of the anniversary month of formation. New for you: Idaho permanent building fund tax, Idaho S corporation minimum tax.

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 Idaho unemployment tax on the salary, and Idaho permanent building fund tax and Idaho S corporation minimum tax. 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 Idaho?

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 Idaho?

$4,799 a year: Single-member LLC $26,182, LLC taxed as an S corp $21,383.

Does Idaho recognise the S corp election?

Yes. No separate state form is needed.

More for Idaho

Common cases in Idaho

Other states