A Massachusetts LLC or corporation elects S corporation tax treatment by filing IRS Form 2553, which needs the company's EIN. The election is federal; the Massachusetts state fees stay the same: an LLC still pays $500 a year for its annual report, and a corporation $100 online. Timing runs from the start of the tax year the election should cover, so get the EIN right after formation.
Internal Revenue Service (IRS)Massachusetts Secretary of the Commonwealth, Corporations DivisionM.G.L. c. 63, § 39Massachusetts General Laws chapters 156C, 156D, 180 and 110 and the Corporations Division Filing Fees page reviewed November 11, 2026. Confirm current fees with the Secretary of the Commonwealth before filing.
Heads up: we are an independent company that prepares and submits Massachusetts filings for owners. We are not the Secretary of the Commonwealth or its Corporations Division, and we do not give legal advice. Every state charge passes through at the exact amount billed, shown separately from our service fee.
- Filed with the Massachusetts Corporations Division
- We track your Massachusetts annual report
- Cited to M.G.L. chapters 156C and 156D
- Talk to a filer: (386) 465-3937
The forks in the road.
EIN first
The form requires the company's EIN, so apply after the Secretary files the company.
Internal Revenue Service (IRS)State fees unchanged
An S election does not change the $500 LLC or $100 corporation annual report fee.
Massachusetts Secretary of the Commonwealth, Corporations DivisionCorporate excise
Business corporations remain subject to Massachusetts corporate excise rules, including the $456 minimum (c. 63, § 39). Ask your accountant how it applies to an S corporation.
M.G.L. c. 63, § 39Eligibility
IRS rules limit S corporations to eligible shareholders and one class of stock.
Internal Revenue Service (IRS)What to have ready
- Form the company
- Get the EIN
- Confirm shareholders are eligible
- Pick the effective tax year
- Sign Form 2553
- Keep the IRS acceptance letter
S Corporation Election for a Massachusetts LLC or Corporation: Form 2553 Timing
S Corporation Election for a Massachusetts LLC or Corporation: Form 2553 Timing
Massachusetts LLC and corporation cost calculator
Corporations Division fee (at cost)
$500.00
Our service fee
$149.00
Agent and kit
$199.00
First-year total
$848.00
Next year the LLC files a $500 annual report on the anniversary of its filing date. When we file online, the Division's electronic processing charge is added at cost as its own line.
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Timing the election
Form 2553 has timing rules tied to the start of the tax year the election should cover. Because the form needs the EIN, get the EIN as soon as the Secretary files the company. Missing the window can push the election to the next year.
Source: www.irs.gov
LLC or corporation underneath
An LLC that elects S status keeps paying $500 a year to the Secretary; a corporation pays $100 online. The federal tax result can be the same, so some owners choose the corporation for lower state fees, then weigh the corporate excise.
Source: www.irs.gov
Payroll after the election
S corporation owners who work in the business generally take reasonable wages through payroll, which means DOR withholding registration. Plan for it before the first distribution.
Source: www.sec.state.ma.us
Eligibility checks
Shareholders must be eligible and there can be only one class of stock under IRS rules. Check before admitting a new investor.
Source: malegislature.gov
Timing the election
Form 2553 must be filed no more than two months and fifteen days after the beginning of the tax year the election is to take effect, or at any time during the prior tax year. For a corporation formed on March 1, that window closes in mid-May. The IRS instructions also describe relief for late elections when there was reasonable cause.
Source: www.irs.gov
LLCs can elect too
An LLC can be taxed as an S corporation by electing to be treated as a corporation and filing Form 2553. The Massachusetts annual report stays $500 a year either way, because the state fee follows the legal entity, not the tax election.
Source: www.irs.gov
Massachusetts law and Corporations Division rules behind this.
| Topic | Massachusetts rule | Where it comes from |
|---|---|---|
| Form | IRS Form 2553, signed by all shareholders or members. | Internal Revenue Service (IRS) |
| EIN first | The form requires the company's EIN, so apply after the Secretary files the company. | Internal Revenue Service (IRS) |
| State fees unchanged | An S election does not change the $500 LLC or $100 corporation annual report fee. | Massachusetts Secretary of the Commonwealth, Corporations Division |
| Corporate excise | Business corporations remain subject to Massachusetts corporate excise rules, including the $456 minimum (c. 63, § 39). Ask your accountant how it applies to an S corporation. | M.G.L. c. 63, § 39 |
| Eligibility | IRS rules limit S corporations to eligible shareholders and one class of stock. | Internal Revenue Service (IRS) |
Related Massachusetts reading.
Heads up: we are an independent company that prepares and submits Massachusetts filings for owners. We are not the Secretary of the Commonwealth or its Corporations Division, and we do not give legal advice. Every state charge passes through at the exact amount billed, shown separately from our service fee.
What Massachusetts owners ask us
Yes, for federal tax purposes, by filing Form 2553. It stays an LLC under state law.
Internal Revenue Service (IRS)No. Annual reports and agent rules stay the same.
Massachusetts Secretary of the Commonwealth, Corporations DivisionWe obtain the EIN for $99. Many owners have their accountant file Form 2553 with the year's tax planning.
Internal Revenue Service (IRS)Yes. Corp USA prepares and submits your Massachusetts filing with the Corporations Division for you. The state fee is passed through at cost and our service fee is shown separately at checkout, so you never have to work through the state's filing system yourself.
Massachusetts Secretary of the Commonwealth, Corporations Division