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

At $100,000 profit in Texas, an LLC taxed as an S corp costs $17,829 a year in tax and fees and an S corporation costs $17,829. 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 Texas, at these numbers.

With these settings the switch does not pay at any profit from $10,000 to $500,000.

Texas, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Payroll tax on your salaryirs.gov, 2026 rates	$6,405	$6,405	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Federal income taxirs.gov, 2026 rates	$9,624	$9,624	$0
Yearly cost	$17,829	$17,829	+$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	$6,713	$6,713	+$0
$50,000	$9,595	$9,595	+$0
$75,000	$11,995	$11,995	+$0
$100,000	$17,829	$17,829	+$0
$150,000	$30,397	$30,397	+$0
$200,000	$43,724	$43,724	+$0
$300,000	$73,345	$73,345	+$0

Federal and Texas 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 Texas

File the Certificate of Formation for-profit corporation (Form 201) with the state: $300 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Franchise Tax Public Information Report, no fee, due May 15.

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 Certificate of Formation (Form 205) and Franchise Tax Public Information Report, no fee, a corporation files Certificate of Formation for-profit corporation (Form 201) and Franchise Tax Public Information Report, 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 Texas?

Nothing. S corporation costs $0 a year more ($17,829 against $17,829).

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

For federal tax, yes. For Texas fees and paperwork, no: the LLC pays Franchise Tax Public Information Report, no fee and the corporation Franchise Tax Public Information Report, no fee.

More for Texas

Common cases in Texas

Other states