StructureCost2026

LLC or S corp for a nurse practitioner in South Carolina (2026)

A nurse practitioner in South Carolina with $150,000 of profit pays $43,122 a year in tax and fees as a sole proprietor and $43,295 as an LLC taxed as an S corp, with a $105,000 salary. The S corp starts to pay at about $67,500 of profit.

More settings revenue, salary, filing status, payroll costs, PTET

+$173 a year

more for an LLC taxed as an S corp than a sole proprietorship in South Carolina, at these numbers.

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $67,500 of profit, with the same settings. Setting up costs $110 once in state filing fees. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

South Carolina, 2026: $150,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$21,194$0−$21,194
Federal income taxirs.gov, 2026 rates$16,413$20,443+$4,030
State income tax, after the PTET exclusiondor.sc.gov, checked Oct 22, 2026$5,515$3,723−$1,792
Payroll tax on your salaryirs.gov, 2026 rates$0$16,255+$16,255
Payroll service and tax return (estimate)$0$1,800+$1,800
South Carolina corporate license feedor.sc.gov, checked Oct 22, 2026$0$25+$25
South Carolina pass-through entity tax, paid by the company (elected)dor.sc.gov, checked Oct 22, 2026$0$1,049+$1,049
Yearly cost$43,122$43,295+$173
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.

At three profit levels

ProfitSalary usedSole propLLCLLC as S corpC corp
$100,000$70,000$25,459$25,459$25,737$30,393
$150,000$105,000$43,122$43,122$43,295$50,215
$210,000$132,000$64,044$64,044$62,003$74,306

Salary is the BLS median for the job ($132,300), capped at 70% of profit. Revenue 2.4 times profit. Single filer.

What matters for nurse practitioners

What the switch takes in South Carolina

  1. File the Articles of Organization with the state: $110 (fee).
  2. Get an EIN from the IRS (free, online) and open a business bank account in the new name.
  3. Check the business can elect: no more than 100 shareholders, all of them US citizens or residents (no nonresident alien owners), and one class of stock. IRS
  4. File IRS Form 2553 to elect S corp tax treatment, within 2 months and 15 days of the start of the tax year it should apply to. See how the S corp election works.
  5. Register with South Carolina as an employer and run payroll for your own salary: federal Forms 941 each quarter, Form 940 and a W-2 each year. New employers pay South Carolina unemployment tax at 1% on the first $14,000 of wages. dew.sc.gov See what payroll costs.
  6. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  7. State upkeep each year: no yearly report fee, due None. New for you: South Carolina corporate license fee.

Questions

Should a nurse practitioner in South Carolina form an S corp?

At $150,000 of profit, not on these figures: the S corp costs $173 a year more than staying a sole proprietor.

Is an LLC worth it for a nurse practitioner in South Carolina?

For tax, a single-member LLC changes nothing: $43,122 a year against $43,122, the difference being South Carolina's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in South Carolina
Other states