LLC vs S corp in Kansas: which costs less (2026)

At $100,000 profit in Kansas, a single-member LLC costs $26,780 a year in tax and fees and an LLC taxed as an S corp costs $21,835. An LLC taxed as an S corp starts to cost less from about $50,000 of profit.

$4,945 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in Kansas, at these numbers.

Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $50,000 of profit, with the same settings. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

Kansas, 2026: $100,000 profit, single filer

Item	LLC	LLC as S corp	Change
Business Entity Information Reportsos.ks.gov, checked Oct 23, 2026	$45	$45	$0
Self-employment taxirs.gov, 2026 rates	$14,123	$0	−$14,123
Federal income taxirs.gov, 2026 rates	$8,228	$9,075	+$847
State income tax, after the PTET creditkslegislature.gov, checked Oct 23, 2026	$4,384	$1,432	−$2,952
Payroll tax on your salaryirs.gov, 2026 rates	$0	$6,426	+$6,426
Payroll service and tax return (estimate)	$0	$1,800	+$1,800
Kansas pass-through entity tax, paid by the company (elected)ksrevisor.gov, checked Oct 23, 2026	$0	$3,057	+$3,057
Yearly cost	$26,780	$21,835	−$4,945

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

Yearly cost at each profit level

Profit	LLC	LLC as S corp	Difference
$30,000	$6,001	$7,454	+$1,453
$50,000	$11,557	$11,313	−$244
$75,000	$18,617	$14,974	−$3,643
$100,000	$26,780	$21,835	−$4,945
$150,000	$44,616	$36,753	−$7,863
$200,000	$63,036	$52,478	−$10,558
$300,000	$107,216	$86,293	−$20,923

Federal and Kansas tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is LLC taxed as an S corp minus Single-member LLC.

What the switch takes in Kansas

Check the business can elect: no more than 100 shareholders, all of them US citizens or residents (no nonresident alien owners), and one class of stock. IRS
File IRS Form 2553 to elect S corp tax treatment, within 2 months and 15 days of the start of the tax year it should apply to. See how the S corp election works.
Register with Kansas as an employer and run payroll for your own salary: federal Forms 941 each quarter, Form 940 and a W-2 each year. New employers pay Kansas unemployment tax at 1.75% on the first $15,100 of wages. kslegislature.gov See what payroll costs.
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Business Entity Information Report, $90 every two years, due April 15 of every other year (even or odd year matching the formation year).

What changes between the two

A plain LLC pays self-employment tax of 15.3% on 92.35% of all profit, up to the Social Security wage base of $184,500. Taxed as an S corp, the business pays you a salary, and only the salary carries Social Security and Medicare tax. The rest comes out as a distribution.

The election adds costs: a payroll service, a separate business tax return (Form 1120-S), federal and Kansas unemployment tax on the salary. The calculator counts $1,800 a year for payroll and the return. The IRS expects a reasonable salary for the work, so it cannot be set near zero.

Questions

At what profit does an S corp election pay in Kansas?

About $50,000 a year, on the default salary (40% of profit, at least $30,000 where profit allows) and $1,800 of yearly payroll and return costs. Change the salary in the calculator to see how the point moves.

How much does it save at $100,000 in Kansas?

$4,945 a year: Single-member LLC $26,780, LLC taxed as an S corp $21,835.

Does Kansas recognise the S corp election?

Yes. No separate state form is needed.

More for Kansas

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