LLC vs S corp by profession (2026)
Your job changes the S corp math in two places. The salary is the big one. The IRS wants you to pay yourself about what the work pays an employee. A physician's median is $244,180 and a hair stylist's is $35,790, so the physician runs far more through payroll and keeps less of the saving.
The QBI deduction is the other. Doctors, lawyers, accountants, consultants and financial advisers lose the 20% deduction as taxable income goes from $201,750 to $276,750 (single filer). Electricians, designers and drivers keep it.
Each page uses the BLS median pay for the job, capped at 70% of profit.
| Profession | BLS median pay | Service business (QBI) | Typical profit used |
|---|---|---|---|
| Management consultant | $101,860 | yes | $110,000 |
| Software developer | $135,980 | no | $150,000 |
| Graphic designer | $62,960 | no | $70,000 |
| Photographer | $44,660 | no | $50,000 |
| Real estate agent | $52,830 | no | $60,000 |
| Insurance agent | $62,280 | no | $70,000 |
| Financial advisor | $105,070 | yes | $120,000 |
| Therapist | $59,350 | yes | $70,000 |
| Physical therapist | $102,760 | yes | $110,000 |
| Nurse practitioner | $132,300 | yes | $150,000 |
| Physician | $244,180 | yes | $270,000 |
| Dentist | $170,950 | yes | $190,000 |
| Lawyer | $159,670 | yes | $180,000 |
| Accountant | $83,680 | yes | $90,000 |
| Freelance writer | $76,910 | no | $80,000 |
| Web developer | $92,650 | no | $100,000 |
| Marketing consultant | $78,760 | yes | $90,000 |
| Electrician | $63,190 | no | $70,000 |
| Plumber | $63,800 | no | $70,000 |
| General contractor | $114,990 | no | $130,000 |
| Truck driver | $58,640 | no | $60,000 |
| Hair stylist | $35,790 | no | $40,000 |
| Personal trainer | $47,160 | no | $50,000 |
| Rideshare driver | $42,100 | no | $50,000 |