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

At $100,000 profit in Michigan, an LLC taxed as an S corp costs $21,219 a year in tax and fees and an S corporation costs $21,219. 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 Michigan, 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.

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

Item	LLC as S corp	S corp	Change
Annual Reportmichigan.gov, checked Oct 24, 2026	$25	$25	$0
Payroll tax on your salaryirs.gov, 2026 rates	$6,405	$6,405	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Michigan pass-through entity tax, paid by the company (elected)miningjournal.net, checked Oct 24, 2026	$2,330	$2,330	$0
Federal income taxirs.gov, 2026 rates	$9,210	$9,210	$0
State income tax, after the PTET creditmichigan.gov, checked Oct 24, 2026	$1,449	$1,449	$0
Yearly cost	$21,219	$21,219	+$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	$7,585	$7,585	+$0
$50,000	$11,240	$11,240	+$0
$75,000	$14,600	$14,600	+$0
$100,000	$21,219	$21,219	+$0
$150,000	$35,577	$35,577	+$0
$200,000	$50,731	$50,731	+$0
$300,000	$83,547	$83,547	+$0

Federal and Michigan 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 Michigan

File the Articles of Incorporation (CSCL/CD-500) with the state: $60 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $25 a year, due May 15 (starting the year after incorporation).

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 (CSCL/CD-700) and Annual Statement, $25 a year, a corporation files Articles of Incorporation (CSCL/CD-500) and Annual Report, $25 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 Michigan?

Nothing. S corporation costs $0 a year more ($21,219 against $21,219).

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

For federal tax, yes. For Michigan fees and paperwork, no: the LLC pays Annual Statement, $25 a year and the corporation Annual Report, $25 a year.

More for Michigan

Common cases in Michigan

Other states