LLC vs S corp for web developers (2026)
At $100,000 of profit, an S corp election saves a web developer money over a sole proprietorship in 1 of 51 states, with a $70,000 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. Building websites is not a listed field in Treas. Reg. 1.199A-5(b)(2), and consulting under (b)(2)(vii) covers only advice. law.cornell.edu
- Many web developers work on 1099 contracts; an LLC keeps client liability apart from personal assets.
- Median pay for employees in this job: $92,650 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| District of Columbia | $30,600 | $30,089 | $511 |
| South Carolina | $25,459 | $25,737 | +$278 |
| Nebraska | $25,890 | $26,571 | +$681 |
| Virginia | $26,895 | $27,621 | +$726 |
| Louisiana | $24,768 | $25,498 | +$730 |
| Alabama | $26,747 | $27,479 | +$732 |
| Missouri | $25,796 | $26,540 | +$744 |
| Mississippi | $25,350 | $26,121 | +$771 |
| Kansas | $26,751 | $27,530 | +$779 |
| Arizona | $24,295 | $25,090 | +$795 |
| West Virginia | $25,732 | $26,534 | +$802 |
| Michigan | $26,064 | $26,870 | +$806 |
| Georgia | $26,254 | $27,066 | +$812 |
| Iowa | $25,285 | $26,104 | +$819 |
| Maryland | $26,413 | $27,239 | +$826 |
| New Mexico | $25,588 | $26,428 | +$840 |
| Arkansas | $25,632 | $26,480 | +$848 |
| Indiana | $25,077 | $25,929 | +$852 |
| Kentucky | $25,500 | $26,394 | +$894 |
| Oklahoma | $26,002 | $26,901 | +$899 |
| Texas | $22,365 | $23,336 | +$971 |
| Montana | $26,255 | $27,261 | +$1,006 |
| Idaho | $26,182 | $27,211 | +$1,029 |
| South Dakota | $22,365 | $23,397 | +$1,032 |
| Utah | $26,501 | $27,540 | +$1,039 |
| Florida | $22,365 | $23,406 | +$1,041 |
| Wisconsin | $25,910 | $27,022 | +$1,112 |
| Pennsylvania | $25,218 | $26,342 | +$1,124 |
| New Hampshire | $23,668 | $24,808 | +$1,140 |
| North Dakota | $22,897 | $24,080 | +$1,183 |
| North Carolina | $25,564 | $26,756 | +$1,192 |
| Delaware | $27,315 | $28,533 | +$1,218 |
| Illinois | $26,821 | $28,080 | +$1,259 |
| Maine | $26,989 | $28,272 | +$1,283 |
| Vermont | $26,039 | $27,393 | +$1,354 |
| New York | $26,808 | $28,233 | +$1,425 |
| Wyoming | $22,365 | $23,820 | +$1,455 |
| Minnesota | $27,161 | $28,650 | +$1,489 |
| Connecticut | $25,901 | $27,391 | +$1,490 |
| Alaska | $22,399 | $23,935 | +$1,536 |
| Ohio | $22,365 | $23,904 | +$1,539 |
| Colorado | $25,746 | $27,640 | +$1,894 |
| Nevada | $22,503 | $24,504 | +$2,001 |
| Massachusetts | $26,792 | $28,823 | +$2,031 |
| Rhode Island | $25,233 | $27,316 | +$2,083 |
| California | $26,916 | $29,000 | +$2,084 |
| Oregon | $29,923 | $32,233 | +$2,310 |
| Tennessee | $22,365 | $24,832 | +$2,467 |
| New Jersey | $26,095 | $28,743 | +$2,648 |
| Washington | $24,658 | $27,783 | +$3,125 |
| Hawaii | $33,120 | $36,293 | +$3,173 |
Yearly federal and state tax and fees at $100,000 profit and $220,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a web developer form an S corp?
At $100,000 of profit and a $70,000 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 ($511 a year), and in Hawaii it costs $3,173 more.
What salary should a web developer pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $92,650 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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