LLC vs S corp in Ohio: which costs less (2026)

At $100,000 profit in Ohio, a single-member LLC costs $22,365 a year in tax and fees and an LLC taxed as an S corp costs $19,197. An LLC taxed as an S corp starts to cost less from about $55,000 of profit.

$3,168 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in Ohio, at these numbers.

Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $55,000 of profit, with the same settings. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

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

Item	LLC	LLC as S corp	Change
Self-employment taxirs.gov, 2026 rates	$14,130	$0	−$14,130
Federal income taxirs.gov, 2026 rates	$8,235	$9,333	+$1,098
Payroll tax on your salaryirs.gov, 2026 rates	$0	$6,419	+$6,419
Payroll service and tax return (estimate)	$0	$1,800	+$1,800
Ohio pass-through entity tax, paid by the company (elected)dam.assets.ohio.gov, checked Oct 23, 2026	$0	$1,645	+$1,645
Yearly cost	$22,365	$19,197	−$3,168

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	LLC as S corp	Difference
$30,000	$5,181	$6,783	+$1,602
$50,000	$9,732	$10,030	+$298
$75,000	$15,495	$13,108	−$2,387
$100,000	$22,365	$19,197	−$3,168
$150,000	$37,607	$32,428	−$5,179
$200,000	$53,430	$46,444	−$6,986
$300,000	$93,161	$77,122	−$16,039

Federal and Ohio tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is LLC taxed as an S corp minus Single-member LLC.

What the switch takes in Ohio

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
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.
Register with Ohio 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 Ohio unemployment tax at 2.7% on the first $9,000 of wages. dam.assets.ohio.gov See what payroll costs.
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: no yearly report fee.

What changes between the two

A plain LLC pays self-employment tax of 15.3% on 92.35% of all profit, up to the Social Security wage base of $184,500. Taxed as an S corp, the business pays you a salary, and only the salary carries Social Security and Medicare tax. The rest comes out as a distribution.

The election adds costs: a payroll service, a separate business tax return (Form 1120-S), federal and Ohio unemployment tax on the salary. The calculator counts $1,800 a year for payroll and the return. The IRS expects a reasonable salary for the work, so it cannot be set near zero.

Questions

At what profit does an S corp election pay in Ohio?

About $55,000 a year, on the default salary (40% of profit, at least $30,000 where profit allows) and $1,800 of yearly payroll and return costs. Change the salary in the calculator to see how the point moves.

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

$3,168 a year: Single-member LLC $22,365, LLC taxed as an S corp $19,197.

Does Ohio recognise the S corp election?

Yes. No separate state form is needed.

More for Ohio

Common cases in Ohio

Other states