LLC taxed as S corp vs S corporation in Massachusetts: which costs less (2026)

At $100,000 profit in Massachusetts, an LLC taxed as an S corp costs $23,171 a year in tax and fees and an S corporation costs $22,860. An S corporation starts to cost less from about $10,000 of profit.

$311 a year

saved by switching from an LLC taxed as an S corp to an S corporation in Massachusetts, at these numbers.

Switching from an LLC taxed as an S corp to an S corporation starts to pay at about $10,000 of profit, with the same settings. As an S corporation this uses the state's pass-through entity tax election, which lowers the cost here.

Massachusetts, 2026: $100,000 profit, single filer

Item	LLC as S corp	S corp	Change
Annual Reportsec.state.ma.us, checked Oct 23, 2026	$500	$100	−$400
Payroll tax on your salaryirs.gov, 2026 rates	$6,533	$6,533	$0
State disability and paid leavemass.gov, checked Oct 23, 2026	$184	$184	$0
Payroll service and tax return (estimate)	$1,800	$1,800	$0
Massachusetts corporate excise minimum (S corporation)mass.gov, checked Oct 23, 2026	$456	$456	$0
Massachusetts pass-through entity tax, paid by the company (elected)bakertilly.com, checked Oct 23, 2026	$2,689	$2,709	+$20
Federal income taxirs.gov, 2026 rates	$8,960	$9,027	+$67
State income tax, after the PTET creditmass.gov, checked Oct 23, 2026	$2,049	$2,051	+$2
Yearly cost	$23,171	$22,860	−$311

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

Yearly cost at each profit level

Profit	LLC as S corp	S corp	Difference
$30,000	$8,851	$8,503	−$348
$50,000	$12,719	$12,378	−$341
$75,000	$16,369	$16,028	−$341
$100,000	$23,171	$22,860	−$311
$150,000	$38,063	$37,758	−$305
$200,000	$53,775	$53,470	−$305
$300,000	$87,559	$87,278	−$281

Federal and Massachusetts tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is S corporation minus LLC taxed as an S corp.

What the switch takes in Massachusetts

File the Articles of Organization with the state: $275 (fee).
Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
State upkeep each year: Annual Report, $100 a year, due within 2.5 months after the close of the fiscal year (March 15 for calendar year).

What changes between the two

Both are taxed the same way by the IRS once the election is made: salary with payroll tax, the rest as a distribution, one Form 1120-S. The difference is state law: an LLC files Certificate of Organization and Annual Report, $500 a year, a corporation files Articles of Organization and Annual Report, $100 a year.

A corporation also has formalities an LLC skips: a board, bylaws, share records and yearly minutes. Most one-person businesses pick the LLC route for that reason.

Questions

How much does it save at $100,000 in Massachusetts?

$311 a year: LLC taxed as an S corp $23,171, S corporation $22,860.

Is an LLC taxed as an S corp the same as an S corp?

For federal tax, yes. For Massachusetts fees and paperwork, no: the LLC pays Annual Report, $500 a year and the corporation Annual Report, $100 a year.

More for Massachusetts

Common cases in Massachusetts

Other states