StructureCost2026

LLC vs S corp for accountants (2026)

At $90,000 of profit, an S corp election saves a accountant money over a sole proprietorship in 1 of 51 states, with a $63,000 salary. Pick your state for the calculator with these numbers filled in.

StateSole proprietorS corpSaving
District of Columbia$26,406$26,054$352
South Carolina$21,926$22,267+$341
Nebraska$22,418$23,116+$698
Louisiana$21,440$22,182+$742
Virginia$23,311$24,056+$745
Alabama$23,233$23,982+$749
Missouri$22,310$23,070+$760
Mississippi$21,930$22,719+$789
Kansas$23,184$23,982+$798
Arizona$21,013$21,819+$806
West Virginia$22,258$23,076+$818
Michigan$22,620$23,441+$821
Georgia$22,741$23,570+$829
Iowa$21,883$22,712+$829
Maryland$22,923$23,783+$860
New Mexico$22,084$22,944+$860
Arkansas$22,239$23,101+$862
Indiana$21,754$22,618+$864
Kentucky$22,126$23,034+$908
Oklahoma$22,534$23,449+$915
Texas$19,316$20,291+$975
Montana$22,681$23,707+$1,026
South Dakota$19,316$20,353+$1,037
Florida$19,316$20,361+$1,045
Idaho$22,641$23,688+$1,047
Utah$23,038$24,093+$1,055
Wisconsin$22,368$23,475+$1,107
Pennsylvania$21,884$23,002+$1,118
North Dakota$19,666$20,850+$1,184
North Carolina$22,145$23,351+$1,206
Delaware$23,653$24,864+$1,211
Illinois$23,311$24,560+$1,249
Maine$23,284$24,540+$1,256
Vermont$22,376$23,698+$1,322
New York$23,236$24,659+$1,423
Connecticut$22,341$23,799+$1,458
Wyoming$19,316$20,775+$1,459
Minnesota$23,480$24,951+$1,471
Ohio$19,316$20,798+$1,482
New Hampshire$20,098$21,612+$1,514
Alaska$19,351$20,891+$1,540
Colorado$22,288$24,143+$1,855
Nevada$19,455$21,459+$2,004
Massachusetts$23,278$25,283+$2,005
Rhode Island$21,836$23,850+$2,014
California$23,003$25,023+$2,020
Oregon$26,061$28,330+$2,269
Tennessee$19,316$21,655+$2,339
New Jersey$22,454$25,091+$2,637
Hawaii$28,789$31,559+$2,770
Washington$21,287$24,168+$2,881

Yearly federal and state tax and fees at $90,000 profit and $189,000 revenue, single filer, $1,800 a year of payroll and return costs.

Questions

Should a accountant form an S corp?

At $90,000 of profit and a $63,000 salary, an LLC taxed as an S corp costs less than a sole proprietorship in 1 of 51 states. The biggest saving is in District of Columbia ($352 a year), and in Washington it costs $2,881 more.

What salary should a accountant pay themselves?

The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $83,680 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.

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