Texas LLC vs. S-Corp Tax Savings & Filing Fee Calculator (2026)
Calculate exact 15.3% self-employment tax savings with an IRS Form 2553 S-Corporation election in Texas, factoring in the $300 TX Articles of Organization fee and $0/yr report cost.
- Standard Disregarded LLC SE Tax (15.3%): $0
- S-Corp W-2 Reasonable Salary: $0
- S-Corp Shareholder Distribution (0% SE Tax): $0
- S-Corp Payroll Tax (15.3% on Salary Only): $0
- Texas Initial Filing / Annual Fee: $300 / $0/yr
- Est. Texas State Income Tax (0%): $0
Form Your LLC + S-Corp Election & Automated Payroll in 10 Minutes
Get $39 + state fee LLC formation with free 1-year Registered Agent privacy protection, or automate your single-owner S-Corp reasonable salary W-2 filings and quarterly Form 941s.
Start Your LLC / S-Corp Filing with Free Registered Agent →Solo Business LLC & S-Corp Bookkeeping + Reasonable Salary Comp Sheet
Includes IRS Reasonable Compensation documentation log, Accountable Plan home-office/mileage reimbursement calculator, and quarterly estimated tax tracker.
Texas (TX) Regional Benchmarks & Statutory Notes
| Texas Benchmark Metric | 2026 Value | Regional Context (South) |
|---|---|---|
| Skilled Trade Labor Cost Multiplier | 0.96x National Avg | Avg contractor billing rate: ~$81/hr |
| 4,000 PSI Ready-Mix Concrete Benchmark | $160 / cubic yard | Local frost footing depth: 12 inches |
| Texas LLC Filing & Annual Report Fee | $300 initial / $0/yr | Top state income tax benchmark: 0% |
| Residential Security Deposit Statutory Cap & Deadline | 2x Rent / 30 Days | Zero state income tax and no franchise tax below the $2.47M revenue threshold; expansive clay soils require post-tension or reinforced slabs. |
Frequently Asked Questions: Texas LLC vs. S-Corp Tax & Filing Fee Calculator
How much does it cost to start and maintain an LLC in Texas?
In Texas (TX), the initial Articles of Organization state filing fee is $300, and the ongoing annual report / franchise compliance fee is $0 per year. The benchmark top state income tax rate is 0%.
At what profit level does an S-Corp make sense in Texas?
Generally, once your net business profit exceeds $65,000–$80,000 per year in Texas, the 15.3% Medicare and Social Security tax savings on shareholder distributions outweigh the ~$600/yr payroll software cost and $0 annual state fee.
What is considered a reasonable S-Corp salary?
The IRS requires S-Corp owner-employees to pay themselves W-2 wages commensurate with market rates for the services performed (commonly 40%–55% of net profit for solo service businesses, depending on role and hours).
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Compare LLC vs. S-Corp Tax & Filing Fee Calculator in Nearby South States
Alabama (AL) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 0.86x | Concrete: $148/yd³ | LLC Fee: $200
Arkansas (AR) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 0.84x | Concrete: $145/yd³ | LLC Fee: $45
Delaware (DE) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 1.05x | Concrete: $168/yd³ | LLC Fee: $90
Florida (FL) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 0.96x | Concrete: $165/yd³ | LLC Fee: $125
Georgia (GA) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 0.94x | Concrete: $158/yd³ | LLC Fee: $100
Kentucky (KY) LLC vs. S-Corp Tax & Filing Fee Calculator
Labor multiplier: 0.88x | Concrete: $150/yd³ | LLC Fee: $40