StructureCost2026

LLC or S corp for a personal trainer in Montana (2026)

A personal trainer in Montana with $50,000 of profit pays $11,159 a year in tax and fees as a sole proprietor and $11,934 as an LLC taxed as an S corp, with a $35,000 salary. The S corp starts to pay at about $282,500 of profit.

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

+$775 a year

more for an LLC taxed as an S corp than a sole proprietorship in Montana, 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 $35 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.

Montana, 2026: $50,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$7,065$0−$7,065
Federal income taxirs.gov, 2026 rates$2,667$2,929+$262
State income tax, after the PTET creditrevenue.mt.gov, checked Oct 23, 2026$1,427$793−$634
Payroll tax on your salaryirs.gov, 2026 rates$0$5,845+$5,845
Payroll service and tax return (estimate)$0$1,800+$1,800
Montana pass-through entity tax, paid by the company (elected)news.bloombergtax.com, checked Oct 23, 2026$0$567+$567
Yearly cost$11,159$11,934+$775
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
$40,000$28,000$8,417$8,417$9,278$10,655
$50,000$35,000$11,159$11,159$11,934$13,683
$80,000$47,000$19,488$19,488$18,440$22,924

Salary is the BLS median for the job ($47,160), capped at 70% of profit. Revenue 1.3 times profit. Single filer.

What matters for personal trainers

What the switch takes in Montana

  1. File the Articles of Organization with the state: $35 (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 Montana 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 Montana unemployment tax at 1.1% on the first $47,300 of wages. uid.dli.mt.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, no fee, due April 15.

Questions

Should a personal trainer in Montana form an S corp?

At $50,000 of profit, not on these figures: the S corp costs $775 a year more than staying a sole proprietor.

Is an LLC worth it for a personal trainer in Montana?

For tax, a single-member LLC changes nothing: $11,159 a year against $11,159, the difference being Montana's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Montana
Other states