Is an S corp worth it at $75,000 of profit? (2026)
In all 51 jurisdictions an S corp election costs less than a plain LLC at $75,000 of profit. The middle state saves $3,426 a year, after payroll and the extra tax return.
| State | Plain LLC | LLC taxed as S corp | Saving |
|---|---|---|---|
| Tennessee | $19,554 | $14,698 | $4,856 |
| South Carolina | $17,379 | $13,334 | $4,045 |
| Nebraska | $17,972 | $14,227 | $3,745 |
| Louisiana | $17,227 | $13,490 | $3,737 |
| Illinois | $19,669 | $15,938 | $3,731 |
| Virginia | $18,724 | $15,023 | $3,701 |
| Arkansas | $18,013 | $14,333 | $3,680 |
| Alabama | $18,715 | $15,042 | $3,673 |
| Mississippi | $17,551 | $13,878 | $3,673 |
| Missouri | $17,834 | $14,169 | $3,665 |
| Arizona | $16,844 | $13,196 | $3,648 |
| Kansas | $18,617 | $14,974 | $3,643 |
| Georgia | $18,268 | $14,639 | $3,629 |
| Michigan | $18,226 | $14,600 | $3,626 |
| West Virginia | $17,817 | $14,195 | $3,622 |
| Indiana | $17,533 | $13,944 | $3,589 |
| Iowa | $17,542 | $13,956 | $3,586 |
| Idaho | $18,081 | $14,497 | $3,584 |
| Utah | $18,610 | $15,054 | $3,556 |
| Montana | $18,072 | $14,523 | $3,549 |
| Kentucky | $17,827 | $14,295 | $3,532 |
| Florida | $15,602 | $12,071 | $3,531 |
| Oklahoma | $18,105 | $14,588 | $3,517 |
| Texas | $15,495 | $11,995 | $3,500 |
| South Dakota | $15,537 | $12,062 | $3,475 |
| North Dakota | $15,611 | $12,185 | $3,426 |
| Delaware | $19,200 | $15,778 | $3,422 |
| North Carolina | $17,914 | $14,545 | $3,369 |
| New Mexico | $17,605 | $14,252 | $3,353 |
| Pennsylvania | $17,640 | $14,311 | $3,329 |
| Wisconsin | $17,827 | $14,534 | $3,293 |
| Alaska | $15,572 | $12,286 | $3,286 |
| Maine | $18,582 | $15,356 | $3,226 |
| Maryland | $18,658 | $15,437 | $3,221 |
| District of Columbia | $21,464 | $18,263 | $3,201 |
| Vermont | $17,667 | $14,484 | $3,183 |
| New York | $18,683 | $15,563 | $3,120 |
| Wyoming | $15,541 | $12,447 | $3,094 |
| Connecticut | $17,811 | $14,751 | $3,060 |
| Rhode Island | $17,823 | $14,850 | $2,973 |
| California | $18,561 | $15,631 | $2,930 |
| Oregon | $21,089 | $18,159 | $2,930 |
| Washington | $15,548 | $12,677 | $2,871 |
| Nevada | $15,765 | $12,905 | $2,860 |
| Colorado | $17,872 | $15,071 | $2,801 |
| Massachusetts | $19,122 | $16,369 | $2,753 |
| Minnesota | $18,711 | $16,068 | $2,643 |
| Hawaii | $22,144 | $19,558 | $2,586 |
| Ohio | $15,495 | $13,108 | $2,387 |
| New Jersey | $17,852 | $15,565 | $2,287 |
| New Hampshire | $15,572 | $14,835 | $737 |
Yearly federal and state tax and fees, single filer, salary $30,000, revenue $112,500, $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 $75,000 carries self-employment tax. As an S corp only the $30,000 salary carries Social Security and Medicare tax, which saves about $6,007 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 $75,000?
In all 51 jurisdictions an S corp election costs less than a plain LLC at $75,000 of profit. The middle state saves $3,426 a year. The largest saving is in Tennessee ($4,856).
What salary does this assume?
$30,000, 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.