StructureCost2026

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

A therapist in South Carolina with $70,000 of profit pays $15,985 a year in tax and fees as a sole proprietor and $15,893 as an LLC taxed as an S corp, with a $49,000 salary. The S corp starts to pay at about $67,500 of profit.

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

$92 a year

saved by switching from a sole proprietorship to an LLC taxed as an S corp 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: $70,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$9,891$0−$9,891
Federal income taxirs.gov, 2026 rates$4,452$5,119+$667
State income tax, after the PTET exclusiondor.sc.gov, checked Oct 22, 2026$1,642$805−$837
Payroll tax on your salaryirs.gov, 2026 rates$0$7,687+$7,687
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$457+$457
Yearly cost$15,985$15,893−$92
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
$40,000$28,000$7,868$7,868$8,647$9,969
$70,000$49,000$15,985$15,985$15,893$18,557
$90,000$59,000$21,926$21,926$21,430$26,223

Salary is the BLS median for the job ($59,350), capped at 70% of profit. Revenue 1.8 times profit. Single filer.

What matters for therapists

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 therapist in South Carolina form an S corp?

At $70,000 of profit, yes on these figures: an LLC taxed as an S corp costs $15,893 a year against $15,985 as a sole proprietor, $92 less.

Is an LLC worth it for a therapist in South Carolina?

For tax, a single-member LLC changes nothing: $15,985 a year against $15,985, 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