LLC taxed as S corp vs S corporation in Kentucky: which costs less (2026)

At $100,000 profit in Kentucky, an LLC taxed as an S corp costs $20,770 a year in tax and fees and an S corporation costs $20,770. On these figures an S corporation does not cost less at any profit up to $500,000.

+$0 a year

more for an S corporation than an LLC taxed as an S corp in Kentucky, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000. Setting up costs $10 once in state filing fees. As an S corporation this uses the state's pass-through entity tax election, which lowers the cost here.

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

Item	LLC as S corp	S corp	Change
Annual Reportsos.ky.gov, checked Oct 23, 2026	$15	$15	$0
Payroll tax on your salaryirs.gov, 2026 rates	$6,486	$6,486	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Kentucky pass-through entity tax, paid by the company (elected)revenue.ky.gov, checked Oct 23, 2026	$1,917	$1,917	$0
Federal income taxirs.gov, 2026 rates	$9,270	$9,270	$0
State income tax, after the PTET creditrevenue.ky.gov, checked Oct 23, 2026	$1,282	$1,282	$0
Yearly cost	$20,770	$20,770	+$0

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 as S corp	S corp	Difference
$30,000	$7,587	$7,587	+$0
$50,000	$11,104	$11,104	+$0
$75,000	$14,295	$14,295	+$0
$100,000	$20,770	$20,770	+$0
$150,000	$34,811	$34,811	+$0
$200,000	$49,642	$49,642	+$0
$300,000	$81,890	$81,890	+$0

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

What the switch takes in Kentucky

File the Articles of Incorporation with the state: $50 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $15 a year, due June 30 (filing window January 1 to June 30).

What changes between the two

Both are taxed the same way by the IRS once the election is made: salary with payroll tax, the rest as a distribution, one Form 1120-S. The difference is state law: an LLC files Articles of Organization and Annual Report, $15 a year, a corporation files Articles of Incorporation and Annual Report, $15 a year.

A corporation also has formalities an LLC skips: a board, bylaws, share records and yearly minutes. Most one-person businesses pick the LLC route for that reason.

Questions

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

Nothing. S corporation costs $0 a year more ($20,770 against $20,770).

Is an LLC taxed as an S corp the same as an S corp?

For federal tax, yes. For Kentucky fees and paperwork, no: the LLC pays Annual Report, $15 a year and the corporation Annual Report, $15 a year.

More for Kentucky

Common cases in Kentucky

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