Is an S corp worth it at $125,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $125,000 of profit. The middle state saves $5,947 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| Tennessee | $35,912 | $28,053 | $7,859 |
| South Carolina | $34,291 | $26,575 | $7,716 |
| Illinois | $36,857 | $30,264 | $6,593 |
| Alabama | $35,611 | $29,125 | $6,486 |
| Virginia | $35,884 | $29,404 | $6,480 |
| Nebraska | $34,578 | $28,135 | $6,443 |
| Kansas | $35,698 | $29,283 | $6,415 |
| Mississippi | $33,901 | $27,502 | $6,399 |
| Missouri | $34,509 | $28,131 | $6,378 |
| New Mexico | $34,347 | $27,974 | $6,373 |
| Georgia | $35,073 | $28,711 | $6,362 |
| Louisiana | $33,109 | $26,778 | $6,331 |
| West Virginia | $34,433 | $28,104 | $6,329 |
| Arkansas | $34,213 | $27,888 | $6,325 |
| Michigan | $34,688 | $28,378 | $6,310 |
| Oklahoma | $34,684 | $28,455 | $6,229 |
| Arizona | $32,496 | $26,277 | $6,219 |
| Iowa | $33,799 | $27,597 | $6,202 |
| Indiana | $33,395 | $27,199 | $6,196 |
| Idaho | $35,035 | $28,849 | $6,186 |
| Kentucky | $33,945 | $27,766 | $6,179 |
| Montana | $35,189 | $29,027 | $6,162 |
| Maryland | $35,357 | $29,255 | $6,102 |
| Utah | $35,167 | $29,079 | $6,088 |
| North Carolina | $34,244 | $28,217 | $6,027 |
| Florida | $30,082 | $24,135 | $5,947 |
| New York | $35,819 | $29,879 | $5,940 |
| Minnesota | $36,362 | $30,429 | $5,933 |
| Texas | $29,986 | $24,065 | $5,921 |
| South Dakota | $30,024 | $24,127 | $5,897 |
| California | $37,191 | $31,351 | $5,840 |
| Maine | $36,324 | $30,544 | $5,780 |
| Delaware | $36,723 | $31,014 | $5,709 |
| Pennsylvania | $33,557 | $27,872 | $5,685 |
| North Dakota | $31,005 | $25,326 | $5,679 |
| Wisconsin | $34,778 | $29,157 | $5,621 |
| Connecticut | $34,858 | $29,333 | $5,525 |
| Wyoming | $30,027 | $24,549 | $5,478 |
| Alaska | $30,056 | $24,609 | $5,447 |
| Vermont | $35,222 | $29,801 | $5,421 |
| Oregon | $39,639 | $34,225 | $5,414 |
| Colorado | $34,405 | $29,018 | $5,387 |
| Rhode Island | $34,195 | $28,809 | $5,386 |
| District of Columbia | $41,177 | $35,809 | $5,368 |
| Massachusetts | $35,898 | $30,610 | $5,288 |
| Nevada | $30,229 | $25,233 | $4,996 |
| Hawaii | $41,704 | $36,943 | $4,761 |
| New Jersey | $35,244 | $30,614 | $4,630 |
| Washington | $31,991 | $27,577 | $4,414 |
| New Hampshire | $32,662 | $28,413 | $4,249 |
| Ohio | $29,986 | $25,784 | $4,202 |
Yearly federal and state tax and fees, single filer, salary $50,000, revenue $187,500, $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 $125,000 carries self-employment tax. As an S corp only the $50,000 salary carries Social Security and Medicare tax, which saves about $10,012 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 $125,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $125,000 of profit. The middle state saves $5,947 a year. The largest saving is in Tennessee ($7,859).
What salary does this assume?
$50,000, 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.