StructureCost2026

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

At $100,000 profit in Oregon, a single-member LLC costs $29,984 a year in tax and fees and an LLC taxed as an S corp costs $25,815. An LLC taxed as an S corp starts to cost less from about $55,000 of profit.

More settings revenue, salary, filing status, payroll costs, PTET

$4,169 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in Oregon, 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.

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

ItemLLCLLC as S corpChange
Annual Report (renewal)sos.oregon.gov, checked Oct 20, 2026$100$100$0
Self-employment taxirs.gov, 2026 rates$14,115$0−$14,115
Federal income taxirs.gov, 2026 rates$8,219$8,575+$356
State income tax, after the PTET creditoregon.gov, checked Oct 20, 2026$7,550$2,792−$4,758
Payroll tax on your salaryirs.gov, 2026 rates$0$7,282+$7,282
State disability and paid leavepaidleave.oregon.gov, checked Oct 20, 2026$0$280+$280
Payroll service and tax return (estimate)$0$1,800+$1,800
Oregon S corporation minimum excise taxoregon.gov, checked Oct 20, 2026$0$150+$150
Oregon pass-through entity tax, paid by the company (elected)oregon.gov, checked Oct 20, 2026$0$4,836+$4,836
Yearly cost$29,984$25,815−$4,169
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

ProfitLLCLLC as S corpDifference
$30,000$7,118$9,145+$2,027
$50,000$13,293$13,787+$494
$75,000$21,089$18,159−$2,930
$100,000$29,984$25,815−$4,169
$150,000$49,424$42,737−$6,687
$200,000$69,810$60,521−$9,289
$300,000$112,467$98,072−$14,395

Federal and Oregon 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 Oregon

  1. 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
  2. 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.
  3. Register with Oregon 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 Oregon unemployment tax at 2.4% on the first $56,700 of wages. oregon.gov See what payroll costs.
  4. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  5. State upkeep each year: Annual Report (renewal), $100 a year, due Anniversary date of registration. New for you: Oregon S corporation minimum excise tax.

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 Oregon unemployment tax on the salary, and Oregon S corporation minimum excise tax. 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 Oregon?

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 Oregon?

$4,169 a year: Single-member LLC $29,984, LLC taxed as an S corp $25,815.

Does Oregon recognise the S corp election?

Yes. No separate state form is needed.

More for Oregon

Common cases in Oregon

Other states