StructureCost2026

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

A physician in Utah with $270,000 of profit pays $90,617 a year in tax and fees as a sole proprietor and $91,308 as an LLC taxed as an S corp, with a $189,000 salary. The S corp starts to pay at about $275,000 of profit.

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

+$691 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: $270,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$30,553$0−$30,553
Federal income taxirs.gov, 2026 rates$48,719$49,254+$535
State income tax, after the PTET creditle.utah.gov, checked Oct 24, 2026$11,345$8,411−$2,934
Annual Renewalcorporations.utah.gov, checked Oct 24, 2026$0$18+$18
Payroll tax on your salaryirs.gov, 2026 rates$0$28,959+$28,959
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$2,866+$2,866
Yearly cost$90,617$91,308+$691
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
$180,000$126,000$54,502$54,514$55,838$62,839
$270,000$189,000$90,617$90,624$91,308$100,071
$390,000$244,000$145,001$145,012$140,892$147,224

Salary is the BLS median for the job ($244,180), capped at 70% of profit. Revenue 2 times profit. Single filer.

What matters for physicians

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 physician in Utah form an S corp?

At $270,000 of profit, not on these figures: the S corp costs $691 a year more than staying a sole proprietor.

Is an LLC worth it for a physician in Utah?

For tax, a single-member LLC changes nothing: $90,624 a year against $90,617, 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