OH · Tax year 2026 · Last reviewed 2026-08-24
LLC vs S Corp in Ohio: Tax Savings Calculator.
Compare federal payroll taxes, self-employment taxes, Ohio ’s annual report and estimated S Corp savings in seconds.
At $100,000 net profit with a $50,000 W-2 salary, the federal payroll tax delta is $10,305. Adjusted for Ohio's recurring cost, the estimated net modeled benefit (yr 1) is$9,105.
LLC Filing Fee
$99
one-time, Ohio Secretary of State
Annual Franchise / Report (LLC)
$0
no annual report fee modeled
S-Corp Recurring Cost
$0
same as the LLC rate
Estimated Net Modeled Benefit (yr 1)
$9,105
federal delta minus the annual fee
01 · Ohio model
Tune the inputs. Numbers update live.
What does this mean? Your expected business profit for the year after business expenses but before the owner's salary.
The IRS requires "reasonable compensation" for S-Corp shareholder-employees. The salary is capped at your current net profit.
This is an illustrative assumption, not a tax or an IRS-required amount. Real overhead depends on your payroll provider, your CPA, and your state.
Per IRS Form 8959, these are added to your business income to determine whether the 0.9% Additional Medicare Tax applies.
Sets the Form 8959 threshold: $200K (single / HOH), $250K (MFJ), $125K (MFS).
Ohio LLC recurring fee (deducted from savings)
$0
No recurring state fee modeled for this state.
Defaults: $100K profit · $50K salary
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LLC
Federal payroll tax
$14,130
S-CORP
Federal payroll tax
$3,825
Federal Payroll / SE Tax Difference
$10,305
LLC SE tax minus the S-Corp's employer-side FICA on the owner salary. This is the federal payroll-tax piece only.
Estimated Net Modeled Benefit (yr 1)
$9,105
- Federal payroll-tax delta
- $10,305
- − Ohio annual fee
- $10,305
- − Modeled S-Corp admin overhead
- $1,200
- = Estimated net modeled benefit
- $9,105
- − Approx. §199A W-2 drag
- $0
- = Net after QBI drag
- $9,105
Federal delta = the LLC's self-employment tax minus the S-Corp's employer-side payroll tax. The S-Corp employer-side figure ishalf of the standard 12.4% + 2.9% FICA on the salary; the 0.9% Additional Medicare Tax is entirely employee-side (no employer match) and is not included in the S-Corp employer-side comparison. The $99 filing fee is not included — it's a one-time setup cost. Income tax, QBI, health insurance, and retirement contributions are not modeled.
Estimate. Methodology & scope
ESTIMATE. The figures above estimate the federal payroll / self-employment tax difference between a Single-Member LLC (Schedule C / Schedule SE) and an S-Corp election, plus Ohio's modeled $0 annual report (no recurring franchise tax is currently modeled) and the one-time $99 Ohio LLC filing fee (setup cost, not deducted from the year-1 net benefit). They do not include federal or Ohio individual income tax (the state-income-tax flag is informational; the dollar amount is not modeled), the §199A QBI deduction (made permanent under the One Big Beautiful Bill Act, H.R. 1 / Public Law 119-21, signed July 4, 2025, with a 2026 phase-in range of $200K–$275K single / $400K–$550K MFJ), self-employed health insurance, retirement contributions, the half-of-SE-tax Schedule 1 adjustment, filing-status-specific deductions or credits, multi-state apportionment, reasonable-compensation enforcement, or other items that depend on your complete tax situation. The S-Corp administration overhead is a configurable illustrative assumption (defaulted to $1,200/yr), not a tax and not an IRS-required amount. Verify with a licensed CPA, EA, or tax attorney before acting.
02 · Why Ohio specifically
The state-level numbers that move the answer.
An S-Corp election only pencils out when the federal payroll tax saved outpaces the recurring cost of running a corporate entity. Ohiocharges $0per year to keep your entity in good standing and assesses ordinary state income tax on top of the federal figure.
At the calculator's default $100K / $50K inputs, the federal delta ($10,305) is what an LLC owner gives up in self-employment tax on net profit. After the Ohio annual fee, the estimated net modeled benefit is$9,105.
State-specific note: Ohio does not charge an annual report fee for LLCs (an optional $25 filing is available).
Localized formula — how this number was calculated
// Ohio — same engine as the homepage
seBase = netProfit × 0.9235
ssPortion = min(seBase, 184_500) × 0.124
medicare = seBase × 0.029
addlMed = max(0, seBase + existingWages − 200_000) × 0.009
llcTax = ssPortion + medicare + addlMed
// S-Corp — employer-side payroll tax only
ssPortion = min(salary, 184_500) × 0.124
medicare = salary × 0.029
standard = ssPortion + medicare
addlMed = max(0, salary + existingWages − 200_000) × 0.009
// employee-side only — no employer match
scorpTax = standard / 2 // 50% of standard FICA — AddlMed excluded
// Net benefit
payrollDelta = llcTax − scorpTax
netOfFee = max(0, payrollDelta − 0)
savings = max(0, netOfFee − 1200) // $1,200 admin overhead- LLC filing: one-time $99 to form the entity in Ohio.
- Annual franchise / report: $0/yr modeled — confirm with Ohio Secretary of State whether a filing is required.
- State income tax: applies on top of federal ordinary rates; not modeled.
03 · FAQ
LLC vs S Corp in Ohio — frequently asked questions
Common questions about choosing between an LLC and S Corp in Ohio, sourced from Google, Reddit, and Quora. The right answer depends on your income, reasonable compensation, and other factors — talk to a CPA for personal advice.
How much does it cost to form an LLC in Ohio?
Ohio charges a $99 filing fee to form an LLC. Notably, Ohio does not charge a mandatory annual report fee for LLCs (an optional $25 filing is available).
Does Ohio have a state income tax?
Yes. Ohio imposes a state individual income tax with rates that have been gradually reduced. As of 2025, the top rate is around 3.5%. Ohio also levies a Commercial Activity Tax (CAT) gross-receipts tax.
Is an S Corp election worth it in Ohio?
With no mandatory annual report fee, the S-Corp election in Ohio is very cost-effective on the fee side. At $100K net profit, the federal savings of $5,500–$6,000 minus $0 (or $25) annual fee is strong. The election typically becomes worthwhile once net profit exceeds $50K–$60K.
What is Ohio's Commercial Activity Tax (CAT)?
Ohio levies a Commercial Activity Tax (CAT) on gross receipts. This is a separate obligation from the LLC annual report and applies to businesses above certain revenue thresholds.
Do Ohio LLCs need to file an annual report?
Ohio does not charge a mandatory annual report fee for LLCs. An optional $25 filing is available but not required.
04 · Compare against
Run the model against another state.
05 · Methodology