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

At $100,000 profit in New Jersey, an LLC taxed as an S corp costs $22,793 a year in tax and fees and an S corporation costs $22,793. On these figures an S corporation does not cost less at any profit up to $500,000.

+$0 a year

more for an S corporation than an LLC taxed as an S corp in New Jersey, 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.

New Jersey, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Annual Reportnj.gov, checked Oct 23, 2026	$75	$75	$0
Payroll tax on your salaryirs.gov, 2026 rates	$7,482	$7,482	$0
State disability and paid leavenj.gov, checked Oct 23, 2026	$338	$338	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
New Jersey S corporation minimum tax (CBT)nj.gov, checked Oct 23, 2026	$563	$563	$0
New Jersey pass-through entity tax, paid by the company (elected)nj.gov, checked Oct 23, 2026	$3,016	$3,016	$0
Federal income taxirs.gov, 2026 rates	$8,792	$8,792	$0
State income tax, after the PTET creditnj.gov, checked Oct 23, 2026	$727	$727	$0
Yearly cost	$22,793	$22,793	+$0

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	$8,182	$8,182	+$0
$50,000	$11,759	$11,759	+$0
$75,000	$15,565	$15,565	+$0
$100,000	$22,793	$22,793	+$0
$150,000	$38,292	$38,292	+$0
$200,000	$54,614	$54,614	+$0
$300,000	$89,221	$89,221	+$0

Federal and New Jersey 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 New Jersey

File the Public Records Filing for New Business Entity (Certificate of Incorporation) with the state: $100 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $75 a year, due Last day of the anniversary month of incorporation.

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 Public Records Filing for New Business Entity (Certificate of Formation) and Annual Report, $75 a year, a corporation files Public Records Filing for New Business Entity (Certificate of Incorporation) and Annual Report, $75 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 New Jersey?

Nothing. S corporation costs $0 a year more ($22,793 against $22,793).

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

For federal tax, yes. For New Jersey fees and paperwork, no: the LLC pays Annual Report, $75 a year and the corporation Annual Report, $75 a year.

More for New Jersey

Common cases in New Jersey

Other states