LLC taxed as S corp vs S corporation in North Dakota: which costs less (2026)

At $100,000 profit in North Dakota, an LLC taxed as an S corp costs $18,565 a year in tax and fees and an S corporation costs $18,544. An S corporation starts to cost less from about $10,000 of profit.

$21 a year

saved by switching from an LLC taxed as an S corp to an S corporation in North Dakota, at these numbers.

Switching from an LLC taxed as an S corp to an S corporation starts to pay at about $10,000 of profit, with the same settings.

North Dakota, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Annual Reportsos.nd.gov, checked Oct 20, 2026	$50	$25	−$25
Payroll tax on your salaryirs.gov, 2026 rates	$6,562	$6,562	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Federal income taxirs.gov, 2026 rates	$9,588	$9,592	+$4
State income taxtax.nd.gov, checked Oct 20, 2026	$565	$565	$0
Yearly cost	$18,565	$18,544	−$21

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	$6,757	$6,734	−$23
$50,000	$9,691	$9,669	−$22
$75,000	$12,185	$12,164	−$21
$100,000	$18,565	$18,544	−$21
$150,000	$32,127	$32,107	−$20
$200,000	$46,398	$46,379	−$19
$300,000	$78,013	$77,996	−$17

Federal and North Dakota 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 North Dakota

File the Articles of Incorporation (registration via FirstStop) 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, $25 a year, due August 1.

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 Articles of Organization (registration via FirstStop) and Annual Report, $50 a year, a corporation files Articles of Incorporation (registration via FirstStop) and Annual Report, $25 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 North Dakota?

$21 a year: LLC taxed as an S corp $18,565, S corporation $18,544.

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

For federal tax, yes. For North Dakota fees and paperwork, no: the LLC pays Annual Report, $50 a year and the corporation Annual Report, $25 a year.

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