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

At $100,000 profit in Mississippi, an LLC taxed as an S corp costs $20,422 a year in tax and fees and an S corporation costs $20,442. On these figures an S corporation does not cost less at any profit up to $500,000.

+$20 a year

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

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

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

Item	LLC as S corp	S corp	Change
Payroll tax on your salaryirs.gov, 2026 rates	$6,330	$6,330	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Mississippi corporate franchise taxdor.ms.gov, checked Oct 23, 2026	$25	$25	$0
Mississippi pass-through entity tax, paid by the company (elected)dor.ms.gov, checked Oct 23, 2026	$2,445	$2,444	−$1
Federal income taxirs.gov, 2026 rates	$9,203	$9,199	−$4
State income tax, after the PTET creditdor.ms.gov, checked Oct 23, 2026	$619	$619	$0
Corporation Annual Report (Form F0008)sos.ms.gov, checked Oct 23, 2026	$0	$25	+$25
Yearly cost	$20,422	$20,442	+$20

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	$6,980	$7,002	+$22
$50,000	$10,598	$10,620	+$22
$75,000	$13,878	$13,900	+$22
$100,000	$20,422	$20,442	+$20
$150,000	$34,617	$34,638	+$21
$200,000	$49,609	$49,629	+$20
$300,000	$82,050	$82,068	+$18

Federal and Mississippi 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 Mississippi

File the Articles of Incorporation (Form F0001) with the state: $50 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Corporation Annual Report (Form F0008), $25 a year, due April 15.

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 Certificate of Formation (Form F0100) and LLC Annual Report (Form F0108), no fee, a corporation files Articles of Incorporation (Form F0001) and Corporation Annual Report (Form F0008), $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 Mississippi?

Nothing. S corporation costs $20 a year more ($20,442 against $20,422).

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

For federal tax, yes. For Mississippi fees and paperwork, no: the LLC pays LLC Annual Report (Form F0108), no fee and the corporation Corporation Annual Report (Form F0008), $25 a year.

More for Mississippi

Common cases in Mississippi

Other states