StructureCost2026

LLC or S corp for a accountant in Utah (2026)

A accountant in Utah with $90,000 of profit pays $23,038 a year in tax and fees as a sole proprietor and $24,093 as an LLC taxed as an S corp, with a $63,000 salary. The S corp starts to pay at about $275,000 of profit.

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

+$1,055 a year

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

Switching from a sole proprietorship to an LLC taxed as an S corp starts to pay at about $275,000 of profit, with the same settings. Setting up costs $59 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.

Utah, 2026: $90,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$12,717$0−$12,717
Federal income taxirs.gov, 2026 rates$6,599$8,353+$1,754
State income tax, after the PTET creditle.utah.gov, checked Oct 24, 2026$3,722$2,804−$918
Annual Renewalcorporations.utah.gov, checked Oct 24, 2026$0$18+$18
Payroll tax on your salaryirs.gov, 2026 rates$0$10,239+$10,239
Payroll service and tax return (estimate)$0$1,800+$1,800
Utah pass-through entity tax, paid by the company (elected)le.utah.gov, checked Oct 24, 2026$0$879+$879
Yearly cost$23,038$24,093+$1,055
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
$60,000$42,000$14,518$14,532$15,175$17,096
$90,000$63,000$23,038$23,049$24,093$27,727
$130,000$84,000$36,886$36,899$36,560$43,343

Salary is the BLS median for the job ($83,680), capped at 70% of profit. Revenue 2.1 times profit. Single filer.

What matters for accountants

What the switch takes in Utah

  1. File the Certificate of Organization with the state: $59 (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 Utah 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 Utah unemployment tax at 1.1% on the first $50,700 of wages. jobs.utah.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: Annual Renewal, $18 a year, due by the anniversary date of formation.

Questions

Should a accountant in Utah form an S corp?

At $90,000 of profit, not on these figures: the S corp costs $1,055 a year more than staying a sole proprietor.

Is an LLC worth it for a accountant in Utah?

For tax, a single-member LLC changes nothing: $23,049 a year against $23,038, the difference being Utah's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Utah
Other states