Annotate Legal Massachusetts Startup For S-Corporation Forms For Free

Massachusetts S corporations other than Finan- cial Institution S corporations must file Form 355S with Schedule S and one Schedule SK-1 for each resident and nonresident shareholder. Schedule S must be completed to report the S corporation's distributive income.

Massachusetts S corporations other than Finan- cial Institution S corporations must file Form 355S with Schedule S and one Schedule SK-1 for each resident and nonresident shareholder. Schedule S must be completed to report the S corporation's distributive income.

To form an S Corp in California, you must file Form 2553 (Election by a Small Business Corporation) with the IRS and then complete additional requirements with the state of California, including filing articles of incorporation, obtaining licenses and permits, and appointing directors.

You must maintain a balance sheet for your S corporation, and you may refer to this information when you file taxes for the entity. In some instances you have to transcribe all of the information from a balance sheet onto the S corporation tax form.

Entities that are S corporations for federal purposes are S corporations for Massachusetts purposes, with the exception of security corporations. An S corporation's income, losses, and deductions are passed through to the shareholders, and are reported and taxed on the shareholders' individual returns.

For example, in Massachusetts, every S-Corp. must pay a minimum excise tax of $456 to the Commonwealth. And in Massachusetts, if an S-Corp.'s annual receipts exceed six million dollars, the entity could become liable for substantial state income taxes. The LLC is not liable for any state excise tax in Massachusetts.