How to File an S Corp in Massachusetts: A Step-by-Step Guide

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How do I file an S Corp in Massachusetts?
Massachusetts S corporations must annually file Form 355S or Form 63 FI. A Massachusetts S corporation that is included in a 355U also files Form 355S or 63FI but that return will generally be informational only. S corporations must also include with the annual filing: A Massachusetts Schedule S.
Read more on www.mass.gov

A possibility to think about if you’re wanting to launch a business in Massachusetts is creating a S corporation. A type of business known as a S corporation, or S corp for short, is taxed similarly to a partnership or a sole proprietorship. This indicates that while the company as a whole does not pay income taxes, the profits and losses are transferred to the shareholders and are then reported on their individual tax returns.

So how do you register a S corporation in Massachusetts? Here is a detailed instruction:

1. Pick a name for your business. The name you choose must stand out from existing company names listed with the Massachusetts Secretary of State’s office. On the Secretary of State’s website, you can verify whether a name is available.

2. Submit organizational documents to the Massachusetts Secretary of State. This document establishes your corporation formally and contains essential details including the name, location, and registered agent of the corporation.

3. Ask the IRS for an Employer Identification Number (EIN). The IRS utilizes this special code to trace your company for tax-related purposes. Hold a board of directors organizational meeting.

4. You will adopt bylaws, choose officers, and conduct any other essential business during this meeting.

5. Submit Form 2553 to the IRS in order to choose S corp status. By submitting this form, your corporation notifies the IRS that it wishes to be taxed as a S corp.

In Massachusetts, does an LLC have to pay a yearly fee?

Yes, an LLC in Massachusetts is subject to an annual charge. The cost will be $500 as of 2021. Every year by the anniversary of the founding of your LLC, this charge is required.

In Massachusetts, how much does it cost to form a corporation?

Depending on the type of corporation you’re forming and whether you decide to work with an attorney or use an internet formation service, the cost to form a corporation in Massachusetts varies. The Secretary of State’s office requires a $275 filing fee for each set of articles of organization. Expect to pay several thousand dollars in legal expenses if you hire a lawyer.

How much does it cost in Massachusetts to register a DBA?

In Massachusetts, a DBA (Doing Business As) filing costs $50. This amount covers the cost of submitting a certificate of business name to the Secretary of State. Additionally, you might be required to pay extra money to post a notice of your DBA in a local newspaper.

What distinguishes an LLC from a corporation?

How they are taxed is the primary distinction between an LLC and a corporation. Since LLCs are pass-through businesses, the members receive a share of the profits and losses and must disclose them on their individual tax returns. On the other hand, corporations are taxed separately and are required to pay taxes on their earnings. Furthermore, corporations have a more strict structure with a board of directors and officers, whereas LLCs have a more flexible management and organizational structure.

FAQ
People also ask how do i get a certificate of good standing in massachusetts?

You can submit an online request for a Massachusetts certificate of good standing through the Massachusetts Secretary of State’s website. Additionally, you can ask for it in person or by mail at the Boston office of the Secretary of State. You’ll need to supply your company name and tax ID number, and the certificate can cost money.