StructureCost2026

LLC or S corp for a management consultant in Maine (2026)

A management consultant in Maine with $110,000 of profit pays $30,702 a year in tax and fees as a sole proprietor and $32,014 as an LLC taxed as an S corp, with a $77,000 salary. The S corp starts to pay at about $282,500 of profit.

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

+$1,312 a year

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

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $282,500 of profit, with the same settings. Setting up costs $175 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.

Maine, 2026: $110,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$15,543$0−$15,543
Federal income taxirs.gov, 2026 rates$9,871$12,175+$2,304
State income tax, after the PTET creditmaine.gov, checked Oct 20, 2026$5,288$3,662−$1,626
Annual Reportmaine.gov, checked Oct 20, 2026$0$85+$85
Payroll tax on your salaryirs.gov, 2026 rates$0$12,128+$12,128
State disability and paid leavelegislature.maine.gov, checked Oct 20, 2026$0$385+$385
Payroll service and tax return (estimate)$0$1,800+$1,800
Maine pass-through entity tax, paid by the company (elected)maine.gov, checked Oct 20, 2026$0$1,779+$1,779
Yearly cost$30,702$32,014+$1,312
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
$80,000$56,000$19,989$20,048$20,834$23,464
$110,000$77,000$30,702$30,755$32,014$36,224
$160,000$102,000$49,275$49,326$49,158$56,847

Salary is the BLS median for the job ($101,860), capped at 70% of profit. Revenue 1.7 times profit. Single filer.

What matters for management consultants

What the switch takes in Maine

  1. File the Certificate of Formation (MLLC-6) with the state: $175 (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 Maine 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 Maine unemployment tax at 2.54% on the first $12,000 of wages. maine.gov 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, $85 a year, due June 1 (first report due the year after formation).

Questions

Should a management consultant in Maine form an S corp?

At $110,000 of profit, not on these figures: the S corp costs $1,312 a year more than staying a sole proprietor.

Is an LLC worth it for a management consultant in Maine?

For tax, a single-member LLC changes nothing: $30,755 a year against $30,702, the difference being Maine's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Maine
Other states