StructureCost2026

LLC or S corp for a nurse practitioner in Louisiana (2026)

A nurse practitioner in Louisiana with $150,000 of profit pays $41,404 a year in tax and fees as a sole proprietor and $42,284 as an LLC taxed as an S corp, with a $105,000 salary. The S corp starts to pay at about $275,000 of profit.

More settings revenue, salary, filing status, payroll costs, PTET

+$880 a year

more for an LLC taxed as an S corp than a sole proprietorship in Louisiana, at these numbers.

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $275,000 of profit, with the same settings. Setting up costs $125 once in state filing fees. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

Louisiana, 2026: $150,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$21,194$0−$21,194
Federal income taxirs.gov, 2026 rates$16,413$20,456+$4,043
State income tax, after the PTET exclusiondam.ldr.la.gov, checked Oct 23, 2026$3,797$2,765−$1,032
Annual Reportstatic.sos.la.gov, checked Oct 23, 2026$0$35+$35
Payroll tax on your salaryirs.gov, 2026 rates$0$16,177+$16,177
Payroll service and tax return (estimate)$0$1,800+$1,800
Louisiana pass-through entity tax, paid by the company (elected)legis.la.gov, checked Oct 23, 2026$0$1,051+$1,051
Yearly cost$41,404$42,284+$880
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.

At three profit levels

ProfitSalary usedSole propLLCLLC as S corpC corp
$100,000$70,000$24,768$24,791$25,498$29,155
$150,000$105,000$41,404$41,428$42,284$48,039
$210,000$132,000$61,080$61,106$60,394$71,122

Salary is the BLS median for the job ($132,300), capped at 70% of profit. Revenue 2.4 times profit. Single filer.

What matters for nurse practitioners

What the switch takes in Louisiana

  1. File the Articles of Organization and Initial Report (Louisiana Limited Liability Company) with the state: $125 (fee).
  2. Get an EIN from the IRS (free, online) and open a business bank account in the new name.
  3. 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
  4. 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.
  5. Register with Louisiana 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 Louisiana unemployment tax at 1% on the first $7,000 of wages. news.bloombergtax.com See what payroll costs.
  6. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  7. State upkeep each year: Annual Report, $35 a year, due Anniversary date of formation.

Questions

Should a nurse practitioner in Louisiana form an S corp?

At $150,000 of profit, not on these figures: the S corp costs $880 a year more than staying a sole proprietor.

Is an LLC worth it for a nurse practitioner in Louisiana?

For tax, a single-member LLC changes nothing: $41,428 a year against $41,404, the difference being Louisiana's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Louisiana
Other states