Shareholders in an S (shareholder) corporation can be individuals, or other businesses and organizations, such as corporations and trusts.

Entities that are S corporations for federal purposes are S corporations for Massachusetts purposes, with the exception of corporate trusts, security corporations and public utility corporations. Items of S corporation income, loss and deduction are passed through the S corporation to the shareholders, and reported and taxed on their individual returns.

However, S corporations are liable for the non-income measure of the corporate excise and are liable for the income measure of the corporate excise on any income that is taxable to the S corporation federally. S corporations with total receipts of $6 million or more are liable for the income measure of the corporate excise at the following rates:

  • 1.83 percent on net income subject to tax if total receipts are $6 million or more, but less than $9 million; or
  • 2.75 percent on net income subject to tax if total receipts are $9 million or more.

All S corporations owe a minimum corporate tax of $456 regardless of profitability.
 


Filing Requirements
Massachusetts S corporations must file Form 355S, with a Schedule S. S corporations must also file a Schedule SK-1 for each resident and nonresident shareholder, as well as provide a Schedule SK-1 to each shareholder to inform them of their distributive shares of items of income, loss, deduction and credit, for reporting on their Massachusetts returns. For additional information on these requirements, please refer to the Form 355S instructions.

 

Filing frequency*Return filing method
State Federal
Annually, on the 15th day of the 3rd month after the close of the S corporations taxable year. Payment is due with return.Form 355S, with Schedule S and Schedules SK-1Form 1120-S

Note: Electronic filing requirements are in place for this tax type. Refer to Technical Information Release (TIR) 04-30 for detailed information. Learn more about electronic payment options .

S corporations are subject to the same estimated payment requirements detailed above for regular corporations .

The following table shows which return each type of shareholder should file:

Type of shareholder Form to file
Full-year resident individualForm 1
Nonresident/part-year resident individualForm 1-NR/PY
Trust or estateForm 2
Domestic and foreign corporationsForm 355

Domestic or foreign corporation (part of a MA Combined group)

Form 355C
Corporate trustForm 3F
Domestic and Foreign S corporationsForm 355S