StructureCost2026

LLC or S corp for a therapist in West Virginia (2026)

A therapist in West Virginia with $70,000 of profit pays $16,433 a year in tax and fees as a sole proprietor and $16,755 as an LLC taxed as an S corp, with a $49,000 salary. The S corp starts to pay at about $275,000 of profit.

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

+$322 a year

more for an LLC taxed as an S corp than a sole proprietorship in West Virginia, 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 $100 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.

West Virginia, 2026: $70,000 profit, single filer

ItemSole propLLC as S corpChange
Self-employment taxirs.gov, 2026 rates$9,891$0−$9,891
Federal income taxirs.gov, 2026 rates$4,452$5,086+$634
State income tax, after the PTET credittax.wv.gov, checked Oct 23, 2026$2,090$1,355−$735
Annual Reportsos.wv.gov, checked Oct 23, 2026$0$25+$25
Payroll tax on your salaryirs.gov, 2026 rates$0$7,796+$7,796
Payroll service and tax return (estimate)$0$1,800+$1,800
West Virginia pass-through entity tax, paid by the company (elected)tax.wv.gov, checked Oct 23, 2026$0$693+$693
Yearly cost$16,433$16,755+$322
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
$40,000$28,000$8,381$8,399$9,205$10,607
$70,000$49,000$16,433$16,450$16,755$19,289
$90,000$59,000$22,258$22,274$22,322$26,892

Salary is the BLS median for the job ($59,350), capped at 70% of profit. Revenue 1.8 times profit. Single filer.

What matters for therapists

What the switch takes in West Virginia

  1. File the Articles of Organization (Form LLD-1) with the state: $100 (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 West Virginia 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 West Virginia unemployment tax at 2.7% on the first $9,500 of wages. wvlegislature.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, $25 a year, due June 30 (filing window January 1 to June 30, starting the year after formation).

Questions

Should a therapist in West Virginia form an S corp?

At $70,000 of profit, not on these figures: the S corp costs $322 a year more than staying a sole proprietor.

Is an LLC worth it for a therapist in West Virginia?

For tax, a single-member LLC changes nothing: $16,450 a year against $16,433, the difference being West Virginia's LLC fees. It separates business liability and is the base for an S corp election.

More

Other professions in West Virginia
Other states