LLC vs S corp for freelance writers (2026)
At $80,000 of profit, an S corp election saves a freelance writer money over a sole proprietorship in 1 of 51 states, with a $56,000 salary. Pick your state for the calculator with these numbers filled in.
- This work is not a specified service trade or business, so the 20% QBI deduction stays available above the income limit, subject to the wage limit. Writing is not a listed field; performing arts under Treas. Reg. 1.199A-5(b)(2)(vi) covers people who take part in creating a performance, so a writer of plays or scripts may fall in it. law.cornell.edu
- Most freelance writers are paid on 1099 forms with low overhead, so profit is close to what they bill.
- Median pay for employees in this job: $76,910 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| District of Columbia | $23,017 | $22,108 | $909 |
| South Carolina | $18,774 | $18,796 | +$22 |
| Nebraska | $19,327 | $19,660 | +$333 |
| Louisiana | $18,493 | $18,867 | +$374 |
| Virginia | $20,109 | $20,492 | +$383 |
| Alabama | $20,100 | $20,486 | +$386 |
| Missouri | $19,205 | $19,601 | +$396 |
| Mississippi | $18,890 | $19,317 | +$427 |
| Arizona | $18,113 | $18,549 | +$436 |
| Kansas | $19,997 | $20,433 | +$436 |
| West Virginia | $19,164 | $19,618 | +$454 |
| Michigan | $19,557 | $20,012 | +$455 |
| Iowa | $18,861 | $19,321 | +$460 |
| Georgia | $19,609 | $20,075 | +$466 |
| Arkansas | $19,228 | $19,722 | +$494 |
| Indiana | $18,812 | $19,307 | +$495 |
| New Mexico | $18,977 | $19,480 | +$503 |
| Maryland | $19,814 | $20,326 | +$512 |
| Kentucky | $19,133 | $19,673 | +$540 |
| Oklahoma | $19,448 | $19,998 | +$550 |
| Texas | $16,648 | $17,246 | +$598 |
| South Dakota | $16,648 | $17,308 | +$660 |
| Montana | $19,488 | $20,152 | +$664 |
| Idaho | $19,480 | $20,147 | +$667 |
| Florida | $16,648 | $17,316 | +$668 |
| Utah | $19,956 | $20,647 | +$691 |
| Wisconsin | $19,208 | $19,929 | +$721 |
| Pennsylvania | $18,930 | $19,661 | +$731 |
| North Dakota | $16,817 | $17,621 | +$804 |
| Delaware | $20,376 | $21,195 | +$819 |
| North Carolina | $19,106 | $19,947 | +$841 |
| Maine | $19,989 | $20,834 | +$845 |
| Illinois | $20,183 | $21,039 | +$856 |
| Vermont | $19,095 | $20,004 | +$909 |
| New York | $20,066 | $21,103 | +$1,037 |
| Ohio | $16,648 | $17,694 | +$1,046 |
| Connecticut | $19,162 | $20,209 | +$1,047 |
| Minnesota | $20,180 | $21,250 | +$1,070 |
| Wyoming | $16,648 | $17,731 | +$1,083 |
| Alaska | $16,686 | $17,846 | +$1,160 |
| Colorado | $19,211 | $20,645 | +$1,434 |
| New Hampshire | $16,936 | $18,415 | +$1,479 |
| Rhode Island | $18,819 | $20,384 | +$1,565 |
| Massachusetts | $20,145 | $21,742 | +$1,597 |
| California | $19,523 | $21,121 | +$1,598 |
| Nevada | $16,801 | $18,414 | +$1,613 |
| Tennessee | $16,648 | $18,479 | +$1,831 |
| Oregon | $22,580 | $24,413 | +$1,833 |
| Washington | $18,956 | $21,073 | +$2,117 |
| New Jersey | $19,208 | $21,475 | +$2,267 |
| Hawaii | $26,085 | $28,437 | +$2,352 |
Yearly federal and state tax and fees at $80,000 profit and $200,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a freelance writer form an S corp?
At $80,000 of profit and a $56,000 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 ($909 a year), and in Hawaii it costs $2,352 more.
What salary should a freelance writer pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $76,910 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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