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

At $100,000 profit in Vermont, an LLC taxed as an S corp costs $21,930 a year in tax and fees and an S corporation costs $21,941. On these figures an S corporation does not cost less at any profit up to $500,000.

+$11 a year

more for an S corporation than an LLC taxed as an S corp in Vermont, at these numbers.

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

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

Item	LLC as S corp	S corp	Change
Annual Reportlegislature.vermont.gov, checked Oct 23, 2026	$45	$60	+$15
Payroll tax on your salaryirs.gov, 2026 rates	$6,448	$6,448	$0
State disability and paid leavetax.vermont.gov, checked Oct 23, 2026	$44	$44	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Vermont business entity minimum taxtax.vermont.gov, checked Oct 23, 2026	$250	$250	$0
Federal income taxirs.gov, 2026 rates	$9,565	$9,562	−$3
State income taxtax.vermont.gov, checked Oct 23, 2026	$3,778	$3,777	−$1
Yearly cost	$21,930	$21,941	+$11

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	$7,432	$7,445	+$13
$50,000	$10,987	$11,001	+$14
$75,000	$14,484	$14,497	+$13
$100,000	$21,930	$21,941	+$11
$150,000	$37,865	$37,876	+$11
$200,000	$54,945	$54,957	+$12
$300,000	$91,592	$91,602	+$10

Federal and Vermont 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 Vermont

File the Articles of Incorporation with the state: $155 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $60 a year, due within two and a half months after the end of the fiscal year.

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 Articles of Organization and Annual Report, $45 a year, a corporation files Articles of Incorporation and Annual Report, $60 a year.

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 Vermont?

Nothing. S corporation costs $11 a year more ($21,941 against $21,930).

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

For federal tax, yes. For Vermont fees and paperwork, no: the LLC pays Annual Report, $45 a year and the corporation Annual Report, $60 a year.

More for Vermont

Common cases in Vermont

Other states