Is an S corp worth it at $100,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $100,000 of profit. The middle state saves $4,561 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| Tennessee | $27,161 | $21,055 | $6,106 |
| South Carolina | $25,459 | $19,628 | $5,831 |
| Illinois | $27,842 | $22,785 | $5,057 |
| Virginia | $26,926 | $21,920 | $5,006 |
| Nebraska | $25,899 | $20,911 | $4,988 |
| Kansas | $26,780 | $21,835 | $4,945 |
| Alabama | $26,747 | $21,803 | $4,944 |
| Mississippi | $25,350 | $20,422 | $4,928 |
| Missouri | $25,796 | $20,875 | $4,921 |
| Georgia | $26,292 | $21,391 | $4,901 |
| Louisiana | $24,791 | $19,890 | $4,901 |
| New Mexico | $25,588 | $20,698 | $4,890 |
| Arkansas | $25,730 | $20,848 | $4,882 |
| West Virginia | $25,748 | $20,874 | $4,874 |
| Michigan | $26,080 | $21,219 | $4,861 |
| Idaho | $26,182 | $21,383 | $4,799 |
| Arizona | $24,295 | $19,498 | $4,797 |
| Iowa | $25,294 | $20,515 | $4,779 |
| Oklahoma | $26,018 | $21,242 | $4,776 |
| Indiana | $25,087 | $20,323 | $4,764 |
| Montana | $26,255 | $21,491 | $4,764 |
| Kentucky | $25,510 | $20,770 | $4,740 |
| Utah | $26,512 | $21,790 | $4,722 |
| Maryland | $26,608 | $21,993 | $4,615 |
| North Carolina | $25,695 | $21,115 | $4,580 |
| Florida | $22,461 | $17,900 | $4,561 |
| Texas | $22,365 | $17,829 | $4,536 |
| South Dakota | $22,403 | $17,891 | $4,512 |
| New York | $26,826 | $22,344 | $4,482 |
| Maine | $27,042 | $22,604 | $4,438 |
| Delaware | $27,568 | $23,179 | $4,389 |
| North Dakota | $22,930 | $18,565 | $4,365 |
| Pennsylvania | $25,223 | $20,886 | $4,337 |
| Wisconsin | $25,926 | $21,638 | $4,288 |
| Minnesota | $27,161 | $22,912 | $4,249 |
| California | $27,409 | $23,177 | $4,232 |
| Connecticut | $25,952 | $21,746 | $4,206 |
| Alaska | $22,434 | $18,241 | $4,193 |
| Oregon | $29,984 | $25,815 | $4,169 |
| Vermont | $26,067 | $21,930 | $4,137 |
| Rhode Island | $25,530 | $21,426 | $4,104 |
| District of Columbia | $30,693 | $26,594 | $4,099 |
| Wyoming | $22,406 | $18,314 | $4,092 |
| Colorado | $25,762 | $21,748 | $4,014 |
| Massachusetts | $27,116 | $23,171 | $3,945 |
| Nevada | $22,608 | $18,906 | $3,702 |
| Hawaii | $31,380 | $27,712 | $3,668 |
| Washington | $23,978 | $20,610 | $3,368 |
| New Jersey | $26,143 | $22,793 | $3,350 |
| Ohio | $22,365 | $19,197 | $3,168 |
| New Hampshire | $23,737 | $21,299 | $2,438 |
Yearly federal and state tax and fees, single filer, salary $40,000, revenue $150,000, $1,800 a year for payroll and the Form 1120-S. Click a state for the calculator with this profit filled in.
Where the saving comes from
As a plain LLC, all $100,000 carries self-employment tax. As an S corp only the $40,000 salary carries Social Security and Medicare tax, which saves about $8,010 before costs. Payroll, the return and state unemployment tax take part of it back, and states with S corp or franchise taxes take more.
Questions
Is an S corp worth it at $100,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $100,000 of profit. The middle state saves $4,561 a year. The largest saving is in Tennessee ($6,106).
What salary does this assume?
$40,000, which is 40% of profit with a $30,000 floor where profit allows. The IRS expects a reasonable salary for the work. Pay yourself more and the saving shrinks.