StructureCost2026

LLC or S corp for a nurse practitioner in Washington (2026)

A nurse practitioner in Washington with $150,000 of profit pays $41,361 a year in tax and fees as a sole proprietor and $45,448 as an LLC taxed as an S corp, with a $105,000 salary. On these figures the S corp does not pay at any profit up to $500,000.

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

+$4,087 a year

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

With these settings the switch does not pay at any profit from $10,000 to $500,000. Setting up costs $200 once in state filing fees.

Washington, 2026: $150,000 profit, single filer

ItemSole propLLC as S corpChange
Washington business and occupation (B&O) tax, service and other activitiesdor.wa.gov, checked Oct 23, 2026$5,400$5,400$0
Self-employment taxirs.gov, 2026 rates$20,431$0−$20,431
Federal income taxirs.gov, 2026 rates$15,530$19,394+$3,864
Annual Reportsos.wa.gov, checked Oct 23, 2026$0$70+$70
Payroll tax on your salaryirs.gov, 2026 rates$0$17,327+$17,327
State disability and paid leaveesd.wa.gov, checked Oct 23, 2026$0$1,457+$1,457
Payroll service and tax return (estimate)$0$1,800+$1,800
Yearly cost$41,361$45,448+$4,087
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
$100,000$70,000$24,867$24,916$28,030$30,916
$150,000$105,000$41,361$41,410$45,448$49,799
$210,000$132,000$61,519$61,573$64,117$72,061

Salary is the BLS median for the job ($132,300), capped at 70% of profit. Revenue 2.4 times profit. Single filer.

What matters for nurse practitioners

What the switch takes in Washington

  1. File the Certificate of Formation with the state: $200 (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 Washington 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 Washington unemployment tax at 1.53% on the first $78,200 of wages. esd.wa.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 Report, $70 a year, due Last day of the anniversary month of formation.

Questions

Should a nurse practitioner in Washington form an S corp?

At $150,000 of profit, not on these figures: the S corp costs $4,087 a year more than staying a sole proprietor.

Is an LLC worth it for a nurse practitioner in Washington?

For tax, a single-member LLC changes nothing: $41,410 a year against $41,361, the difference being Washington's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in Washington
Other states