StructureCost2026

LLC or S corp for a physician in Missouri (2026)

A physician in Missouri with $270,000 of profit pays $90,317 a year in tax and fees as a sole proprietor and $90,721 as an LLC taxed as an S corp, with a $189,000 salary. The S corp starts to pay at about $272,500 of profit.

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

+$404 a year

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

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $272,500 of profit, with the same settings. Setting up costs $50 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.

Missouri, 2026: $270,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$30,553$0−$30,553
Federal income taxirs.gov, 2026 rates$48,719$49,316+$597
State income tax, after the PTET creditdor.mo.gov, checked Oct 23, 2026$11,045$7,946−$3,099
Payroll tax on your salaryirs.gov, 2026 rates$0$28,615+$28,615
Payroll service and tax return (estimate)$0$1,800+$1,800
Missouri pass-through entity tax, paid by the company (elected)dor.mo.gov, checked Oct 23, 2026$0$3,044+$3,044
Yearly cost$90,317$90,721+$404
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
$180,000$126,000$53,983$53,983$55,022$61,968
$270,000$189,000$90,317$90,317$90,721$99,354
$390,000$244,000$144,998$144,998$140,549$146,592

Salary is the BLS median for the job ($244,180), capped at 70% of profit. Revenue 2 times profit. Single filer.

What matters for physicians

What the switch takes in Missouri

  1. File the Articles of Organization (Form LLC-1) with the state: $50 (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 Missouri 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 Missouri unemployment tax at 2.376% on the first $9,000 of wages. labor.mo.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: no yearly report fee.

Questions

Should a physician in Missouri form an S corp?

At $270,000 of profit, not on these figures: the S corp costs $404 a year more than staying a sole proprietor.

Is an LLC worth it for a physician in Missouri?

For tax, a single-member LLC changes nothing: $90,317 a year against $90,317, the difference being Missouri's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Missouri
Other states