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

At $100,000 profit in Pennsylvania, an LLC taxed as an S corp costs $20,886 a year in tax and fees and an S corporation costs $20,886. 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 Pennsylvania, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000.

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

Item	LLC as S corp	S corp	Change
Annual Reportpa.gov, checked Oct 23, 2026	$7	$7	$0
Payroll tax on your salaryirs.gov, 2026 rates	$6,544	$6,544	$0
State disability and paid leavepa.gov, checked Oct 23, 2026	$28	$28	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Federal income taxirs.gov, 2026 rates	$9,599	$9,599	$0
State income taxpa.gov, checked Oct 23, 2026	$2,908	$2,908	$0
Yearly cost	$20,886	$20,886	+$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	$7,661	$7,661	+$0
$50,000	$11,143	$11,143	+$0
$75,000	$14,311	$14,311	+$0
$100,000	$20,886	$20,886	+$0
$150,000	$34,953	$34,953	+$0
$200,000	$49,782	$49,782	+$0
$300,000	$82,398	$82,398	+$0

Federal and Pennsylvania 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 Pennsylvania

File the Articles of Incorporation (For Profit) with the state: $125 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $7 a year, due June 30.

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 Certificate of Organization (DSCB:15-8821) and Annual Report, $7 a year, a corporation files Articles of Incorporation (For Profit) and Annual Report, $7 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 Pennsylvania?

Nothing. S corporation costs $0 a year more ($20,886 against $20,886).

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

For federal tax, yes. For Pennsylvania fees and paperwork, no: the LLC pays Annual Report, $7 a year and the corporation Annual Report, $7 a year.

More for Pennsylvania

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