StructureCost2026

LLC or S corp for a physical therapist in Montana (2026)

A physical therapist in Montana with $110,000 of profit pays $29,829 a year in tax and fees as a sole proprietor and $30,816 as an LLC taxed as an S corp, with a $77,000 salary. The S corp starts to pay at about $272,500 of profit.

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

+$987 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 $272,500 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: $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$12,205+$2,334
State income tax, after the PTET creditrevenue.mt.gov, checked Oct 23, 2026$4,415$2,990−$1,425
Payroll tax on your salaryirs.gov, 2026 rates$0$12,428+$12,428
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$1,393+$1,393
Yearly cost$29,829$30,816+$987
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$19,488$19,488$20,152$23,217
$110,000$77,000$29,829$29,829$30,816$35,690
$160,000$103,000$47,704$47,704$47,211$56,002

Salary is the BLS median for the job ($102,760), capped at 70% of profit. Revenue 2.4 times profit. Single filer.

What matters for physical therapists

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 physical therapist in Montana form an S corp?

At $110,000 of profit, not on these figures: the S corp costs $987 a year more than staying a sole proprietor.

Is an LLC worth it for a physical therapist in Montana?

For tax, a single-member LLC changes nothing: $29,829 a year against $29,829, 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