LLC vs S corp for marketing consultants (2026)
At $90,000 of profit, an S corp election saves a marketing consultant 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.
- 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). Paid advice is consulting under Treas. Reg. 1.199A-5(b)(2)(vii); doing the marketing work itself (running ads, making content) is not, so the answer depends on what clients pay for. law.cornell.edu
- Pay figure is for market research analysts and marketing specialists, the closest SOC.
- Median pay for employees in this job: $78,760 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| 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 |
| 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 |
| New York | $23,236 | $24,757 | +$1,521 |
| 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 | $25,234 | +$2,780 |
| Hawaii | $30,802 | $33,759 | +$2,957 |
| Washington | $22,037 | $25,058 | +$3,021 |
Yearly federal and state tax and fees at $90,000 profit and $261,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a marketing consultant 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 $3,021 more.
What salary should a marketing consultant pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $78,760 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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