Ohio: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $3,168 a year less than a sole proprietorship in Ohio. All figures are 2026 tax and fees.

$3,168 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Ohio, at these numbers. That includes the state's pass-through entity tax election.

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

Structure

Yearly cost

vs yours

To set up

Sole proprietorship yours

$22,365

Itemized: $22,365

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
Yearly cost	$22,365

Single-member LLC

$22,365

+$0

$99

Itemized: $22,365

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
Yearly cost	$22,365

LLC taxed as an S corp lowest

$19,197

−$3,168

$99

Itemized: $19,197

Payroll tax on your salaryirs.gov, 2026 rates	$6,419
Payroll service and tax return (estimate)	$1,800
Ohio pass-through entity tax, paid by the company (elected)dam.assets.ohio.gov, checked Oct 23, 2026	$1,645
Federal income taxirs.gov, 2026 rates	$9,333
Yearly cost	$19,197

S corporation

$19,197

−$3,168

$99

Itemized: $19,197

Payroll tax on your salaryirs.gov, 2026 rates	$6,419
Payroll service and tax return (estimate)	$1,800
Ohio pass-through entity tax, paid by the company (elected)dam.assets.ohio.gov, checked Oct 23, 2026	$1,645
Federal income taxirs.gov, 2026 rates	$9,333
Yearly cost	$19,197

C corporation

$25,907

+$3,542

$99

Itemized: $25,907

Payroll tax on your salaryirs.gov, 2026 rates	$6,419
Payroll service and tax return (estimate)	$2,000
Federal corporate income tax (21%)irs.gov, 2026 rates	$11,475
Federal income taxirs.gov, 2026 rates	$5,263
State income taxcodes.ohio.gov, checked Oct 23, 2026	$750
Yearly cost	$25,907

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.

When an S corp election pays in Ohio

Electing S corp tax treatment for an LLC starts to pay in Ohio at about $55,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Ohio can elect to pay the state's income tax itself, a pass-through entity tax of 3%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaldam.assets.ohio.gov.

Profit	Sole prop	LLC	LLC as S corp	C corp
$30,000	$5,181	$5,181	$6,783	$7,153
$50,000	$9,732	$9,732	$10,030	$11,544
$75,000	$15,495	$15,495	$13,108	$17,235
$100,000	$22,365	$22,365	$19,197	$25,907
$150,000	$37,607	$37,607	$32,428	$44,337
$200,000	$53,430	$53,430	$46,444	$61,950
$300,000	$93,161	$93,161	$77,122	$98,833

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Ohio

	LLC	Corporation
Filing to form	$99Articles of Organization (Form 610)	$99Articles of Incorporation, for-profit	ohiosos.gov
Yearly report	No yearly report fee	No yearly report fee	ohiosos.gov
Report due	n/a	n/a
Ohio Commercial Activity Tax (CAT)0.26% of gross receipts, none up to $6,000,000	yes	yes	tax.ohio.gov

Ohio taxes personal income in 2 brackets, from 0% to 2.75% (2026, single filer). codes.ohio.gov
Ohio has no corporate income tax. tax.ohio.gov
Ohio follows the federal S corp election.
New employers pay state unemployment tax of 2.7% on the first $9,000 of each employee's wages. That applies to an owner's salary from an S or C corp. dam.assets.ohio.gov
Ohio has no annual report for LLCs.
The $99 minimum fee covers up to 990 authorized shares; more shares cost extra.

Not in the calculator: Most Ohio cities and villages levy a municipal income tax (often 1% to 2.5%) on wages and business net profit, and many school districts levy their own income tax. Not modelled.

Switching calculators for Ohio

By profession in Ohio

Questions

Is an S corp worth it in Ohio?

On these figures, from about $55,000 of profit. At $100,000 an LLC taxed as an S corp costs $19,197 a year against $22,365 for a plain LLC, $3,168 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Ohio?

The state charges no yearly report fee. LLCs can also owe Ohio Commercial Activity Tax (CAT). Forming one costs $99.

Does Ohio recognise the S corp election?

Yes. The federal election carries over with no separate state form. No entity income tax on S corps or LLCs; the CAT applies to all. Optional pass-through entity tax election exists.

What income tax does Ohio charge?

Ohio taxes personal income in 2 brackets, from 0% to 2.75% (2026, single filer). Ohio has no corporate income tax.

How this page models Ohio (2)

The 2026 schedule is read from ORC 5747.02(A)(3)(c) as amended by HB 96 (effective September 30, 2025): $332.00 plus 2.75% above $26,050.
ORC 5747.02(A)(3)(c) sets the 2026 schedule as no tax up to $26,050, then $332.00 plus 2.75% of the amount above $26,050 for all filers; the brackets cannot hold the fixed $332 base, so the site models 2.75% above $26,050 and understates tax by $332 for anyone above the threshold.

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

Other states