Is an S corp worth it at $150,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $150,000 of profit. The middle state saves $7,437 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| Tennessee | $44,663 | $35,056 | $9,607 |
| South Carolina | $43,122 | $33,741 | $9,381 |
| Illinois | $45,873 | $37,750 | $8,123 |
| Alabama | $44,410 | $36,478 | $7,932 |
| Virginia | $44,841 | $36,910 | $7,931 |
| Kansas | $44,616 | $36,753 | $7,863 |
| Nebraska | $43,256 | $35,398 | $7,858 |
| New Mexico | $43,107 | $35,264 | $7,843 |
| Mississippi | $42,451 | $34,617 | $7,834 |
| Missouri | $43,222 | $35,423 | $7,799 |
| Georgia | $43,854 | $36,060 | $7,794 |
| West Virginia | $43,119 | $35,371 | $7,748 |
| Michigan | $43,298 | $35,577 | $7,721 |
| Arkansas | $42,693 | $34,974 | $7,719 |
| Louisiana | $41,428 | $33,724 | $7,704 |
| Oklahoma | $43,352 | $35,704 | $7,648 |
| Maryland | $44,159 | $36,517 | $7,642 |
| Montana | $44,122 | $36,506 | $7,616 |
| Minnesota | $45,717 | $38,123 | $7,594 |
| Arizona | $40,698 | $33,121 | $7,577 |
| Iowa | $42,303 | $34,726 | $7,577 |
| Kentucky | $42,379 | $34,811 | $7,568 |
| Indiana | $41,701 | $34,134 | $7,567 |
| Idaho | $43,887 | $36,321 | $7,566 |
| Utah | $43,823 | $36,320 | $7,503 |
| North Carolina | $42,793 | $35,356 | $7,437 |
| New York | $44,811 | $37,416 | $7,395 |
| Florida | $37,705 | $30,466 | $7,239 |
| Texas | $37,607 | $30,397 | $7,210 |
| South Dakota | $37,646 | $30,458 | $7,188 |
| Maine | $45,606 | $38,486 | $7,120 |
| California | $46,973 | $39,897 | $7,076 |
| North Dakota | $39,079 | $32,127 | $6,952 |
| Delaware | $45,878 | $38,939 | $6,939 |
| Pennsylvania | $41,891 | $34,953 | $6,938 |
| Wisconsin | $43,632 | $36,771 | $6,861 |
| Connecticut | $43,873 | $37,022 | $6,851 |
| Wyoming | $37,649 | $30,873 | $6,776 |
| Colorado | $43,049 | $36,312 | $6,737 |
| Oregon | $49,424 | $42,737 | $6,687 |
| Alaska | $37,677 | $30,991 | $6,686 |
| Rhode Island | $42,921 | $36,248 | $6,673 |
| District of Columbia | $51,663 | $45,023 | $6,640 |
| Massachusetts | $44,683 | $38,063 | $6,620 |
| Vermont | $44,444 | $37,865 | $6,579 |
| Nevada | $37,851 | $31,543 | $6,308 |
| New Hampshire | $41,587 | $35,529 | $6,058 |
| New Jersey | $44,346 | $38,292 | $6,054 |
| Hawaii | $52,029 | $46,175 | $5,854 |
| Washington | $40,003 | $34,573 | $5,430 |
| Ohio | $37,607 | $32,428 | $5,179 |
Yearly federal and state tax and fees, single filer, salary $60,000, revenue $225,000, $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 $150,000 carries self-employment tax. As an S corp only the $60,000 salary carries Social Security and Medicare tax, which saves about $12,014 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 $150,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $150,000 of profit. The middle state saves $7,437 a year. The largest saving is in Tennessee ($9,607).
What salary does this assume?
$60,000, 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.