Sole proprietorship vs C corp in Nevada: which costs less (2026)

At $100,000 profit in Nevada, a sole proprietorship costs $22,503 a year in tax and fees and a C corporation costs $26,226. A C corporation starts to cost less from about $497,500 of profit.

+$3,723 a year

more for a C corporation than a sole proprietorship in Nevada, at these numbers.

Switching from a sole proprietorship to a C corporation starts to pay at about $497,500 of profit, with the same settings. Setting up costs $75 once in state filing fees.

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

Item	Sole prop	C corp	Change
Nevada State Business License (sole proprietor)nvsos.gov, checked Oct 23, 2026	$200	$0	−$200
Self-employment taxirs.gov, 2026 rates	$14,101	$0	−$14,101
Federal income taxirs.gov, 2026 rates	$8,202	$5,074	−$3,128
Annual List of Officers and State Business Licensebizhub.nv.gov, checked Oct 23, 2026	$0	$650	+$650
Payroll tax on your salaryirs.gov, 2026 rates	$0	$7,362	+$7,362
Payroll service and tax return (estimate)	$0	$2,000	+$2,000
Federal corporate income tax (21%)irs.gov, 2026 rates	$0	$11,140	+$11,140
Yearly cost	$22,503	$26,226	+$3,723

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	Sole prop	C corp	Difference
$30,000	$5,339	$8,032	+$2,693
$50,000	$9,886	$12,566	+$2,680
$75,000	$15,649	$17,816	+$2,167
$100,000	$22,503	$26,226	+$3,723
$150,000	$37,747	$44,112	+$6,365
$200,000	$53,587	$61,107	+$7,520
$300,000	$92,198	$96,701	+$4,503

Federal and Nevada tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is C corporation minus Sole proprietorship.

What the switch takes in Nevada

File the Articles of Incorporation with the state: $75 (fee).
Get an EIN from the IRS (free, online) and open a business bank account in the new name.
Incorporate with the state, then issue shares to yourself.
Register with Nevada 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 Nevada unemployment tax at 2.95% on the first $43,700 of wages. oui.doleta.gov See what payroll costs.
Federal return each year: Form 1120, due April 15 for a calendar year.
State upkeep each year: Annual List of Officers and State Business License, $650 a year, due Last day of the anniversary month of incorporation.

What changes between the two

A C corporation pays 21% federal tax on its profit, and the owner pays tax again on dividends (the double tax). A sole proprietorship pays no federal income tax itself: profit lands on the owner's return, where the 20% qualified business income deduction can apply.

The figures assume all C corp profit after tax is paid out as dividends. Profit kept in the company to grow it is taxed only at the corporate rate until it is paid out, which is where a C corp can come out ahead.

Questions

How much does it save at $100,000 in Nevada?

Nothing. C corporation costs $3,723 a year more ($26,226 against $22,503).

When does a C corp make sense in Nevada?

Mostly when profit stays in the company, when outside investors need one, or for the qualified small business stock exclusion. For an owner who takes the profit out, the second tax on dividends usually costs more. On these figures the C corp costs less from about $497,500.

More for Nevada

Common cases in Nevada

Other states