Glass and Glazing Business: S-Corp vs. Sole Proprietorship Tax Comparison

By Yarik Yarosh, CPA ·September 5, 2026 ·3 min read

Written by Yarik Yarosh, CPA (US & Canada) September 5, 2026 · FL CPA license AC61704 · CPA Ontario

Glass and glazing businesses span residential window replacement, commercial storefront installation, shower enclosures, mirrors, and auto glass repair. The trade is NOT a specified service trade or business (SSTB) under IRC 199A, so the full 20% QBI deduction applies at all income levels. Materials (glass panels, frames, sealant, hardware) represent 35-45% of revenue. The specialized equipment needs are modest (glass handling tools, suction cups, glass cutting table, delivery vehicle with glass rack), making the startup capital requirement lower than many trades.

✓Key takeaway

Glass and glazing S-Corp analysis:

Industry characteristics:

Revenue per residential window replacement: $300-$800 per window (often 5-15 windows per job)
Revenue per shower enclosure: $1,000-$3,000
Revenue per commercial storefront: $5,000-$50,000
Revenue per auto glass replacement: $200-$400
Materials: 35-45% of revenue
Workers’ comp: 5-9% of payroll
Licensing: glazier’s license or general contractor license in most states
Mix of residential and commercial diversifies revenue

NOT an SSTB: Glass installation and glazing is a construction/specialty trade. Full QBI deduction at all income levels.

S-Corp break-even (at 7% workers’ comp):

At $80,000 net profit:

Sole prop SE tax: $11,298
S-Corp: salary $45,000, WC $3,150, employer FICA $3,443, payroll $1,200, return $1,000
S-Corp total: $8,793
Savings: $2,505

At $120,000 net profit:

Sole prop SE tax: $16,946
S-Corp: salary $55,000, WC $3,850, employer FICA $4,208, payroll $1,200, return $1,000
S-Corp total: $10,258
Savings: $6,688

At $180,000 net profit:

Sole prop SE tax: $22,406
S-Corp: salary $65,000, WC $4,550, employer FICA $4,973, payroll $1,200, return $1,000
S-Corp total: $11,723
Savings: $10,683

Break-even: approximately $60,000-$75,000 net profit. The moderate WC rate makes the S-Corp attractive at relatively low income levels.

What do taxes look like for a glass and glazing owner?

Hypothetical example

Round numbers. A sole proprietor glass and glazing business (residential windows + shower enclosures + commercial). Revenue: $280,000. Single filer.

Revenue: $280,000

Expenses:

Materials (glass, frames, sealant, hardware): $112,000 (40%)
Subcontractor labor (1099): $25,000
Vehicle (16,000 miles x $0.70): $11,200
Glass rack and delivery equipment: $2,000
Insurance (GL + auto + WC on subs): $6,000
Marketing (Google Ads, HomeAdvisor, referrals): $12,000
Shop/warehouse lease: $9,600
Software, phone, permits: $3,000
Total expenses: $180,800

Net profit: $99,200

As sole prop:

SE tax: $99,200 x 92.35% x 15.3% = $14,010
SE deduction: $7,005
Standard deduction: $15,000
QBI: $99,200 x 20% = $19,840
Taxable income: $99,200 - $7,005 - $15,000 - $19,840 = $57,355
Income tax: approximately $7,600
Total: $21,610

As S-Corp (salary $50,000, 7% WC):

Employer FICA: $3,825
WC: $3,500
K-1: $99,200 - $50,000 - $3,825 - $3,500 = $41,875
Employee FICA: $3,825
Income tax on $91,875: approximately $10,500
Compliance: $2,200
Total: $16,525
Savings: $5,085/year

The glass and glazing business is well-suited to the S-Corp structure because the moderate WC rate and reasonable salary floor produce consistent savings once net profit exceeds $65,000.

Illustrative numbers only, not a real client and not advice for your facts.

When does it make sense to elect S-Corp taxation for my LLC?

The general rule of thumb is when your net self-employment income consistently exceeds $40,000-50,000 annually. Below that, the S-Corp’s added compliance costs (payroll processing, quarterly payroll tax filings, a separate corporate return) often exceed the FICA savings. The calculation is straightforward: an S-Corp pays FICA only on the owner’s reasonable salary, not on distributions above that salary. If your LLC earns $100,000 and a reasonable salary is $60,000, you save roughly $6,120 in self-employment tax on the $40,000 distributed as profit (15.3% x $40,000). Subtract $2,000-3,000 in added compliance costs for payroll and the separate S-Corp return, and you net $3,000-4,000 in annual savings. File Form 2553 by March 15 for a calendar-year election, or within 75 days of forming the LLC for a mid-year start.

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Cite this page

Yarik Yarosh, CPA. "Glass and Glazing Business: S-Corp vs. Sole Proprietorship Tax Comparison." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/glass-glazing-entity-structure-scorp

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.