LLC taxed as S corp vs S corporation in Rhode Island: which costs less (2026)

At $100,000 profit in Rhode Island, an LLC taxed as an S corp costs $21,426 a year in tax and fees and an S corporation costs $21,426. On these figures an S corporation does not cost less at any profit up to $500,000.

+$0 a year

more for an S corporation than an LLC taxed as an S corp in Rhode Island, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000. Setting up costs $80 once in state filing fees. As an S corporation this uses the state's pass-through entity tax election, which lowers the cost here.

Rhode Island, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Annual Report (Form 630)docs.sos.ri.gov, checked Oct 23, 2026	$50	$50	$0
Payroll tax on your salaryirs.gov, 2026 rates	$6,535	$6,535	$0
State disability and paid leavedlt.ri.gov, checked Oct 23, 2026	$440	$440	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Rhode Island S corporation minimum taxtax.ri.gov, checked Oct 23, 2026	$400	$400	$0
Rhode Island pass-through entity tax, paid by the company (elected)web.archive.org, checked Oct 23, 2026	$3,251	$3,251	$0
Federal income taxirs.gov, 2026 rates	$8,950	$8,950	$0
Yearly cost	$21,426	$21,426	+$0

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

Yearly cost at each profit level

Profit	LLC as S corp	S corp	Difference
$30,000	$7,777	$7,777	+$0
$50,000	$11,513	$11,513	+$0
$75,000	$14,850	$14,850	+$0
$100,000	$21,426	$21,426	+$0
$150,000	$36,248	$36,248	+$0
$200,000	$51,940	$51,940	+$0
$300,000	$86,448	$86,448	+$0

Federal and Rhode Island tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is S corporation minus LLC taxed as an S corp.

What the switch takes in Rhode Island

File the Articles of Incorporation with the state: $230 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report (Form 630), $50 a year, due Between February 1 and May 1.

What changes between the two

Both are taxed the same way by the IRS once the election is made: salary with payroll tax, the rest as a distribution, one Form 1120-S. The difference is state law: an LLC files Articles of Organization (Form 400) and Annual Report (Form 632), $50 a year, a corporation files Articles of Incorporation and Annual Report (Form 630), $50 a year.

A corporation also has formalities an LLC skips: a board, bylaws, share records and yearly minutes. Most one-person businesses pick the LLC route for that reason.

Questions

How much does it save at $100,000 in Rhode Island?

Nothing. S corporation costs $0 a year more ($21,426 against $21,426).

Is an LLC taxed as an S corp the same as an S corp?

For federal tax, yes. For Rhode Island fees and paperwork, no: the LLC pays Annual Report (Form 632), $50 a year and the corporation Annual Report (Form 630), $50 a year.

More for Rhode Island

Common cases in Rhode Island

Other states