Is an S corp worth it at $300,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $300,000 of profit. The middle state saves $19,220 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| South Carolina | $105,202 | $81,566 | $23,636 |
| Maryland | $106,584 | $84,519 | $22,065 |
| Virginia | $107,687 | $86,655 | $21,032 |
| New Mexico | $105,321 | $84,348 | $20,973 |
| Kansas | $107,216 | $86,293 | $20,923 |
| Montana | $106,841 | $86,111 | $20,730 |
| Mississippi | $102,775 | $82,050 | $20,725 |
| Alabama | $106,181 | $85,458 | $20,723 |
| Georgia | $105,594 | $84,902 | $20,692 |
| Nebraska | $104,372 | $83,731 | $20,641 |
| Missouri | $104,561 | $83,928 | $20,633 |
| Idaho | $106,098 | $85,511 | $20,587 |
| West Virginia | $104,276 | $83,729 | $20,547 |
| Oklahoma | $104,392 | $83,961 | $20,431 |
| Michigan | $103,975 | $83,547 | $20,428 |
| New York | $108,323 | $87,901 | $20,422 |
| Utah | $104,792 | $84,509 | $20,283 |
| Arkansas | $102,531 | $82,292 | $20,239 |
| Illinois | $107,587 | $87,361 | $20,226 |
| Kentucky | $101,971 | $81,890 | $20,081 |
| Louisiana | $100,288 | $80,227 | $20,061 |
| North Carolina | $103,035 | $82,990 | $20,045 |
| Iowa | $102,330 | $82,291 | $20,039 |
| Indiana | $100,494 | $80,567 | $19,927 |
| Arizona | $98,845 | $79,029 | $19,816 |
| Connecticut | $107,497 | $88,277 | $19,220 |
| Colorado | $103,944 | $84,853 | $19,091 |
| New Jersey | $108,083 | $89,221 | $18,862 |
| Tennessee | $100,567 | $81,765 | $18,802 |
| Texas | $92,125 | $73,345 | $18,780 |
| Florida | $92,175 | $73,408 | $18,767 |
| South Dakota | $92,145 | $73,401 | $18,744 |
| Rhode Island | $105,189 | $86,448 | $18,741 |
| Massachusetts | $106,290 | $87,559 | $18,731 |
| Minnesota | $110,114 | $91,548 | $18,566 |
| North Dakota | $96,509 | $78,013 | $18,496 |
| Pennsylvania | $100,862 | $82,398 | $18,464 |
| Wisconsin | $105,833 | $87,412 | $18,421 |
| Wyoming | $92,147 | $73,783 | $18,364 |
| Maine | $109,109 | $90,787 | $18,322 |
| Alaska | $92,161 | $73,913 | $18,248 |
| Delaware | $108,944 | $90,914 | $18,030 |
| Nevada | $92,253 | $74,400 | $17,853 |
| Vermont | $109,005 | $91,592 | $17,413 |
| New Hampshire | $99,995 | $82,832 | $17,163 |
| California | $111,444 | $95,364 | $16,080 |
| Ohio | $93,161 | $77,122 | $16,039 |
| Oregon | $112,467 | $98,072 | $14,395 |
| Washington | $94,828 | $80,811 | $14,017 |
| District of Columbia | $117,068 | $103,440 | $13,628 |
| Hawaii | $117,317 | $104,311 | $13,006 |
Yearly federal and state tax and fees, single filer, salary $120,000, revenue $450,000, $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 $300,000 carries self-employment tax. As an S corp only the $120,000 salary carries Social Security and Medicare tax, which saves about $9,869 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 $300,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $300,000 of profit. The middle state saves $19,220 a year. The largest saving is in South Carolina ($23,636).
What salary does this assume?
$120,000, 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.