LLC vs S corp for hair stylists (2026)
At $40,000 of profit, an S corp election saves a hair stylist money over a sole proprietorship in 0 of 51 states, with a $28,000 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. Hair care is not a listed field in Treas. Reg. 1.199A-5(b)(2). law.cornell.edu
- Booth renters are self-employed and pay their own self-employment tax; at typical profits the S corp costs can outweigh the saving.
- Median pay for employees in this job: $35,790 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| District of Columbia | $9,847 | $10,119 | +$272 |
| Nebraska | $8,415 | $9,085 | +$670 |
| Louisiana | $8,157 | $8,840 | +$683 |
| Alabama | $9,021 | $9,758 | +$737 |
| Arizona | $7,963 | $8,703 | +$740 |
| Missouri | $8,237 | $8,980 | +$743 |
| Virginia | $8,750 | $9,502 | +$752 |
| Mississippi | $8,182 | $8,940 | +$758 |
| Iowa | $8,228 | $9,004 | +$776 |
| South Carolina | $7,868 | $8,647 | +$779 |
| Michigan | $8,756 | $9,554 | +$798 |
| Kansas | $8,702 | $9,507 | +$805 |
| Idaho | $8,289 | $9,101 | +$812 |
| Indiana | $8,494 | $9,309 | +$815 |
| West Virginia | $8,381 | $9,205 | +$824 |
| Georgia | $8,533 | $9,358 | +$825 |
| Arkansas | $8,631 | $9,461 | +$830 |
| New Mexico | $8,058 | $8,897 | +$839 |
| Utah | $9,081 | $9,925 | +$844 |
| Montana | $8,417 | $9,278 | +$861 |
| Texas | $7,427 | $8,295 | +$868 |
| Kentucky | $8,610 | $9,487 | +$877 |
| Oklahoma | $8,554 | $9,462 | +$908 |
| South Dakota | $7,427 | $8,363 | +$936 |
| Florida | $7,427 | $8,372 | +$945 |
| North Dakota | $7,427 | $8,374 | +$947 |
| Pennsylvania | $8,568 | $9,541 | +$973 |
| Maryland | $8,827 | $9,804 | +$977 |
| Wisconsin | $8,282 | $9,268 | +$986 |
| Maine | $8,365 | $9,416 | +$1,051 |
| Ohio | $7,427 | $8,519 | +$1,092 |
| Alaska | $7,466 | $8,559 | +$1,093 |
| Delaware | $8,976 | $10,072 | +$1,096 |
| Vermont | $8,239 | $9,351 | +$1,112 |
| Illinois | $9,122 | $10,247 | +$1,125 |
| Minnesota | $8,597 | $9,746 | +$1,149 |
| North Carolina | $8,402 | $9,563 | +$1,161 |
| Connecticut | $8,175 | $9,421 | +$1,246 |
| Wyoming | $7,427 | $8,706 | +$1,279 |
| New York | $8,837 | $10,188 | +$1,351 |
| New Hampshire | $7,427 | $8,908 | +$1,481 |
| Washington | $7,427 | $8,922 | +$1,495 |
| Oregon | $10,106 | $11,633 | +$1,527 |
| Colorado | $8,354 | $9,908 | +$1,554 |
| Nevada | $7,581 | $9,151 | +$1,570 |
| Rhode Island | $8,204 | $9,801 | +$1,597 |
| Tennessee | $7,427 | $9,068 | +$1,641 |
| Hawaii | $11,611 | $13,442 | +$1,831 |
| Massachusetts | $9,066 | $10,918 | +$1,852 |
| California | $8,050 | $9,927 | +$1,877 |
| New Jersey | $8,011 | $10,204 | +$2,193 |
Yearly federal and state tax and fees at $40,000 profit and $108,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a hair stylist form an S corp?
At $40,000 of profit and a $28,000 salary, an LLC taxed as an S corp costs less than a sole proprietorship in 0 of 51 states. The biggest saving is in District of Columbia (-$272 a year), and in New Jersey it costs $2,193 more.
What salary should a hair stylist pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $35,790 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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