SCorpDesk / 2026 S-Corp & QBI Guides / 2026 LLC vs. S-Corp Tax Calculator: Form 2553 Election Break-Even & Savings Matrix
2026 LLC vs. S-Corp Tax Calculator: Form 2553 Election Break-Even & Savings Matrix
At what profit level should an LLC elect S-Corporation status (Form 2553) in 2026?
A Single-Member LLC taxed as a sole proprietorship generally hits the S-Corporation break-even point at $60,000 to $75,000 in annual net profit. Above $75,000, the 15.3% FICA tax savings on Schedule K-1 distributions far exceed the annual cost of running single-owner W-2 payroll and filing Form 1120-S.
A Single-Member LLC taxed as a sole proprietorship generally hits the S-Corporation break-even point at $60,000 to $75,000 in annual net profit. Above $75,000, the 15.3% FICA tax savings on Schedule K-1 distributions far exceed the annual cost of running single-owner W-2 payroll and filing Form 1120-S.
Frequently Asked Questions
At what profit level should an LLC elect S-Corporation status (Form 2553) in 2026?
A Single-Member LLC taxed as a sole proprietorship generally hits the S-Corporation break-even point at $60,000 to $75,000 in annual net profit. Above $75,000, the 15.3% FICA tax savings on Schedule K-1 distributions far exceed the annual cost of running single-owner W-2 payroll and filing Form 1120-S.