LLC taxed as S corp vs S corporation in South Carolina: which costs less (2026)

At $100,000 profit in South Carolina, an LLC taxed as an S corp costs $19,628 a year in tax and fees and an S corporation costs $19,628. 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 South Carolina, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000. Setting up costs $25 once in state filing fees. As an S corporation this uses the state's pass-through entity tax election, which lowers the cost here.

South Carolina, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Payroll tax on your salaryirs.gov, 2026 rates	$6,310	$6,310	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
South Carolina corporate license feedor.sc.gov, checked Oct 22, 2026	$25	$25	$0
South Carolina pass-through entity tax, paid by the company (elected)dor.sc.gov, checked Oct 22, 2026	$1,648	$1,648	$0
Federal income taxirs.gov, 2026 rates	$9,347	$9,347	$0
State income tax, after the PTET exclusiondor.sc.gov, checked Oct 22, 2026	$498	$498	$0
Yearly cost	$19,628	$19,628	+$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	$6,871	$6,871	+$0
$50,000	$10,164	$10,164	+$0
$75,000	$13,334	$13,334	+$0
$100,000	$19,628	$19,628	+$0
$150,000	$33,741	$33,741	+$0
$200,000	$48,800	$48,800	+$0
$300,000	$81,566	$81,566	+$0

Federal and South Carolina 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 South Carolina

File the Articles of Incorporation with Initial Annual Report (CL-1) with the state: $135 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual report (Schedule D of SC1120 or SC1120S), no fee, due With the corporate return, 15th day of the 4th month after year end (3rd month for S corps).

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 and no yearly report fee, a corporation files Articles of Incorporation with Initial Annual Report (CL-1) and Annual report (Schedule D of SC1120 or SC1120S), no fee.

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 South Carolina?

Nothing. S corporation costs $0 a year more ($19,628 against $19,628).

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

For federal tax, yes. For South Carolina fees and paperwork, no: the LLC pays no yearly report fee and the corporation Annual report (Schedule D of SC1120 or SC1120S), no fee.

More for South Carolina

Common cases in South Carolina

Other states