Is an S corp worth it at $200,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $200,000 of profit. The middle state saves $10,089 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| Tennessee | $62,569 | $49,877 | $12,692 |
| South Carolina | $61,367 | $48,800 | $12,567 |
| Illinois | $64,459 | $53,532 | $10,927 |
| Maryland | $62,512 | $51,833 | $10,679 |
| Virginia | $63,341 | $52,709 | $10,632 |
| Alabama | $62,606 | $52,041 | $10,565 |
| New Mexico | $61,207 | $50,644 | $10,563 |
| Kansas | $63,036 | $52,478 | $10,558 |
| Mississippi | $60,133 | $49,609 | $10,524 |
| Nebraska | $61,196 | $50,680 | $10,516 |
| Georgia | $62,002 | $51,532 | $10,470 |
| Missouri | $61,229 | $50,770 | $10,459 |
| West Virginia | $61,074 | $50,666 | $10,408 |
| Michigan | $61,099 | $50,731 | $10,368 |
| Minnesota | $65,189 | $54,824 | $10,365 |
| Arkansas | $60,249 | $49,892 | $10,357 |
| Montana | $62,571 | $52,262 | $10,309 |
| Louisiana | $58,648 | $48,340 | $10,308 |
| Oklahoma | $61,269 | $50,965 | $10,304 |
| Idaho | $62,174 | $51,927 | $10,247 |
| Kentucky | $59,830 | $49,642 | $10,188 |
| Indiana | $58,897 | $48,729 | $10,168 |
| Iowa | $59,893 | $49,727 | $10,166 |
| Arizona | $57,683 | $47,523 | $10,160 |
| Utah | $61,716 | $51,560 | $10,156 |
| North Carolina | $60,487 | $50,398 | $10,089 |
| New York | $63,380 | $53,409 | $9,971 |
| California | $67,662 | $57,750 | $9,912 |
| Florida | $53,540 | $43,792 | $9,748 |
| Texas | $53,430 | $43,724 | $9,706 |
| South Dakota | $53,474 | $43,784 | $9,690 |
| Maine | $64,760 | $55,190 | $9,570 |
| North Dakota | $55,813 | $46,398 | $9,415 |
| Pennsylvania | $59,142 | $49,782 | $9,360 |
| New Hampshire | $59,898 | $50,575 | $9,323 |
| Delaware | $64,783 | $55,465 | $9,318 |
| Oregon | $69,810 | $60,521 | $9,289 |
| Wyoming | $53,478 | $44,199 | $9,279 |
| Connecticut | $62,491 | $53,221 | $9,270 |
| Wisconsin | $61,921 | $52,667 | $9,254 |
| Colorado | $60,920 | $51,686 | $9,234 |
| Alaska | $53,509 | $44,317 | $9,192 |
| Massachusetts | $62,843 | $53,775 | $9,068 |
| Rhode Island | $60,967 | $51,940 | $9,027 |
| Vermont | $63,803 | $54,945 | $8,858 |
| District of Columbia | $73,071 | $64,244 | $8,827 |
| Nevada | $53,691 | $44,869 | $8,822 |
| New Jersey | $63,135 | $54,614 | $8,521 |
| Hawaii | $73,221 | $65,072 | $8,149 |
| Washington | $56,561 | $49,316 | $7,245 |
| Ohio | $53,430 | $46,444 | $6,986 |
Yearly federal and state tax and fees, single filer, salary $80,000, revenue $300,000, $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 $200,000 carries self-employment tax. As an S corp only the $80,000 salary carries Social Security and Medicare tax, which saves about $15,989 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 $200,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $200,000 of profit. The middle state saves $10,089 a year. The largest saving is in Tennessee ($12,692).
What salary does this assume?
$80,000, 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.