LLC vs S corp for dentists (2026)
At $190,000 of profit, an S corp election saves a dentist money over a sole proprietorship in 2 of 51 states, with a $133,000 salary. Pick your state for the calculator with these numbers filled in.
- The IRS treats this work as a specified service trade or business, so the 20% QBI deduction phases out above $201,750 of taxable income (single). Health is a specified service under Treas. Reg. 1.199A-5(b)(2)(ii), which covers medical services by physicians, nurses, dentists and similar practitioners. law.cornell.edu
- Many states make licensed professionals use a professional LLC or professional corporation, and California does not let an LLC render services that need a state license, so check the state board before forming. leginfo.legislature.ca.gov
- Median pay for employees in this job: $170,950 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| New Hampshire | $56,123 | $54,467 | $1,656 |
| District of Columbia | $68,645 | $67,269 | $1,376 |
| South Carolina | $57,708 | $57,889 | +$181 |
| Maryland | $58,615 | $59,563 | +$948 |
| Nebraska | $57,587 | $58,582 | +$995 |
| Virginia | $59,595 | $60,595 | +$1,000 |
| Alabama | $58,820 | $59,850 | +$1,030 |
| Missouri | $57,618 | $58,669 | +$1,051 |
| Mississippi | $56,587 | $57,645 | +$1,058 |
| Kansas | $59,309 | $60,368 | +$1,059 |
| Louisiana | $55,168 | $56,259 | +$1,091 |
| New Mexico | $57,577 | $58,669 | +$1,092 |
| Georgia | $58,319 | $59,427 | +$1,108 |
| West Virginia | $57,454 | $58,566 | +$1,112 |
| Michigan | $57,510 | $58,636 | +$1,126 |
| Arizona | $54,277 | $55,448 | +$1,171 |
| Arkansas | $56,618 | $57,803 | +$1,185 |
| Iowa | $56,354 | $57,540 | +$1,186 |
| Oklahoma | $57,656 | $58,866 | +$1,210 |
| Indiana | $55,436 | $56,648 | +$1,212 |
| Kentucky | $56,319 | $57,556 | +$1,237 |
| Montana | $58,872 | $60,150 | +$1,278 |
| Idaho | $58,506 | $59,819 | +$1,313 |
| Utah | $58,114 | $59,463 | +$1,349 |
| Texas | $50,256 | $51,678 | +$1,422 |
| South Dakota | $50,256 | $51,739 | +$1,483 |
| Florida | $50,256 | $51,747 | +$1,491 |
| North Carolina | $56,793 | $58,305 | +$1,512 |
| Wisconsin | $58,234 | $59,876 | +$1,642 |
| North Dakota | $52,419 | $54,079 | +$1,660 |
| Pennsylvania | $55,677 | $57,341 | +$1,664 |
| Delaware | $60,725 | $62,491 | +$1,766 |
| Illinois | $58,852 | $60,657 | +$1,805 |
| Wyoming | $50,256 | $52,153 | +$1,897 |
| New York | $59,634 | $61,577 | +$1,943 |
| Alaska | $50,290 | $52,272 | +$1,982 |
| Maine | $60,860 | $62,845 | +$1,985 |
| Minnesota | $61,284 | $63,351 | +$2,067 |
| Vermont | $59,889 | $62,018 | +$2,129 |
| Connecticut | $58,701 | $60,911 | +$2,210 |
| Nevada | $50,392 | $52,824 | +$2,432 |
| Ohio | $50,256 | $52,774 | +$2,518 |
| Colorado | $57,317 | $60,003 | +$2,686 |
| Massachusetts | $58,865 | $61,578 | +$2,713 |
| Rhode Island | $57,042 | $59,817 | +$2,775 |
| California | $62,586 | $65,641 | +$3,055 |
| Oregon | $65,693 | $68,768 | +$3,075 |
| New Jersey | $59,314 | $62,911 | +$3,597 |
| Tennessee | $50,256 | $54,311 | +$4,055 |
| Washington | $57,042 | $62,429 | +$5,387 |
| Hawaii | $78,141 | $83,971 | +$5,830 |
Yearly federal and state tax and fees at $190,000 profit and $665,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a dentist form an S corp?
At $190,000 of profit and a $133,000 salary, an LLC taxed as an S corp costs less than a sole proprietorship in 2 of 51 states. The biggest saving is in New Hampshire ($1,656 a year), and in Hawaii it costs $5,830 more.
What salary should a dentist pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $170,950 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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