WA · Tax year 2026
LLC vs S-Corp in Washington. A localized number.
At $100,000 net profit with a $50,000 W-2 salary, the federal payroll tax delta is $7,680. Adjusted for Washington's $60 annual franchise/report fee, the estimated net modeled benefit (yr 1) is $7,620.
LLC Filing Fee
$200
one-time, Washington Secretary of State
Annual Franchise / Report
$60
recurring, every year
State Income Tax
No
no individual state-level income tax
Estimated Net Modeled Benefit (yr 1)
$7,620
federal delta minus the annual fee
01 · Washington model
Tune the inputs. Numbers update live.
Washington annual fee (deducted from savings)
$60
LLC
Federal payroll tax
$14,130
S-CORP
Federal payroll tax
$6,450
Estimated Net Modeled Benefit (yr 1)
$7,620
Federal SE tax saved (LLC vs S-Corp) minus Washington's $60 annual fee. The $200 filing fee is not included — it's a one-time setup cost. Income tax, QBI, health insurance, and retirement contributions are not modeled.
02 · Why Washington 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. Washingtoncharges $60per year to keep your entity in good standing and does not layer an individual income tax on top of your pass-through income.
At the calculator's default $100K / $50K inputs, the federal delta ($7,680) is what an LLC owner gives up in self-employment tax on net profit. After the Washington annual fee, the estimated net modeled benefit is$7,620.
State-specific note: Washington has no state individual income tax but charges a $60 annual report fee plus a $30 public-record filing for LLCs (combined $60 model rate). Washington's Business and Occupation (B&O) gross-receipts tax may also apply; it is not modeled here.
Localized formula
// Washington adjusted
llcTax = netProfit × 0.9235 × 0.153
scorpTax = salary × 0.153 − 1200
savings = llcTax − scorpTax − 60- LLC filing: one-time $200 to form the entity in Washington.
- Annual franchise / report: $60/yr to maintain good standing.
- State income tax: not assessed on individual income.