MA · Tax year 2026
LLC vs S-Corp in Massachusetts. A localized number.
At $100,000 net profit with a $50,000 W-2 salary, the federal payroll tax delta is $7,680. Adjusted for Massachusetts's $500 annual franchise/report fee, the estimated net modeled benefit (yr 1) is $7,180.
LLC Filing Fee
$500
one-time, Massachusetts Secretary of State
Annual Franchise / Report
$500
recurring, every year
State Income Tax
Yes
ordinary rates apply · not modeled
Estimated Net Modeled Benefit (yr 1)
$7,180
federal delta minus the annual fee
01 · Massachusetts model
Tune the inputs. Numbers update live.
Massachusetts annual fee (deducted from savings)
$500
LLC
Federal payroll tax
$14,130
S-CORP
Federal payroll tax
$6,450
Estimated Net Modeled Benefit (yr 1)
$7,180
Federal SE tax saved (LLC vs S-Corp) minus Massachusetts's $500 annual fee. The $500 filing fee is not included — it's a one-time setup cost. Income tax, QBI, health insurance, and retirement contributions are not modeled.
02 · Why Massachusetts specifically
The state-level numbers that move the answer.
An S-Corp election only pencils out when the federal payroll tax saved outpaces the recurring cost of running a corporate entity. Massachusettscharges $500per year to keep your entity in good standing and assesses ordinary state income tax on top of the federal figure.
At the calculator's default $100K / $50K inputs, the federal delta ($7,680) is what an LLC owner gives up in self-employment tax on net profit. After the Massachusetts annual fee, the estimated net modeled benefit is$7,180.
State-specific note: Massachusetts has a higher-than-typical $500 LLC filing fee and $500 annual report fee. This makes an S-Corp election in MA less attractive at low net-profit levels.
Localized formula
// Massachusetts adjusted
llcTax = netProfit × 0.9235 × 0.153
scorpTax = salary × 0.153 − 1200
savings = llcTax − scorpTax − 500- LLC filing: one-time $500 to form the entity in Massachusetts.
- Annual franchise / report: $500/yr to maintain good standing.
- State income tax: applies on top of federal ordinary rates; not modeled.