Business Taxes
Business Tax Services in Massachusetts
Business taxes are far more complex than personal returns. Between choosing the right forms for your entity type, tracking deductible expenses, managing quarterly estimated payments, and meeting both federal and Massachusetts deadlines, there is a lot that can go wrong, and the penalties for mistakes add up quickly. TBS Tax Services helps small business owners across Stoughton, Hyannis, and Massachusetts file accurately, pay only what they owe, and stay ahead of every deadline. As a certified public accounting firm with more than 20 years serving the local business community, including many immigrant-owned businesses, our bilingual team understands both the tax code and the realities of running a business.
LLC
Navigating taxes as a Limited Liability Company requires careful consideration of pass-through taxation and other unique tax implications. We specialize in LLC tax compliance, offering tailored solutions to maximize deductions and minimize tax liabilities. Whether you are a single-member LLC or a multi-member entity, we provide comprehensive support to ensure compliance with IRS regulations and Massachusetts state tax requirements, so you can focus on growing your business.
Corporation
As a corporation, managing taxes involves complex regulations and potential pitfalls. Our team is well-versed in corporate tax laws, providing strategic tax planning and compliance services to corporations of all sizes. From optimizing deductions to navigating multi-state tax issues, we help corporations minimize tax liabilities and maximize profits while ensuring compliance with IRS guidelines and Massachusetts reporting requirements, including the corporate excise tax.
Sole-Proprietor
Sole proprietors face unique tax challenges, including self-employment taxes and quarterly estimated tax payments. Our tailored services simplify tax compliance and maximize deductions, helping you keep more of your hard-earned income. Whether you are a freelancer, consultant, or independent contractor, we provide personalized tax solutions that meet your individual needs and ensure compliance with IRS regulations, so you can focus on running your business effectively.
How Are Small Businesses Taxed in Massachusetts?
How your business is taxed depends on its structure. Most Massachusetts LLCs and partnerships are treated as pass-through entities, meaning the business itself does not pay federal income tax; instead, the profits pass through to the owners, who report them on their personal returns. Massachusetts applies a flat 5% personal income tax rate to most income. Corporations pay the Massachusetts corporate excise tax, which is 8% on net income plus a component based on tangible property or net worth, with a minimum excise of $456. S corporations are also subject to the corporate excise even though they pass income through to shareholders. Understanding which rules apply to your business is essential to filing correctly, and it is exactly what we help you sort out.
When Are Business Taxes Due in Massachusetts?
Business tax deadlines depend on your entity type. For calendar-year businesses, S corporations and partnerships generally file by March 15th, while C corporations file by April 15th. Massachusetts corporate excise returns (Form 355 or 355S) follow the corresponding federal schedule. If you need more time, Massachusetts offers an automatic 6-month extension using Form M-4868, but at least 80% of the tax owed must still be paid by the original deadline. Missing these dates triggers late-filing and late-payment penalties of 1% per month each, up to 25%. We track every deadline for you, so nothing slips through.
Do I Need to Make Quarterly Estimated Tax Payments?
If your business expects to owe more than a certain amount in tax for the year, you are generally required to make quarterly estimated payments rather than paying everything at year-end. For federal purposes, this typically applies when you expect to owe $1,000 or more; for Massachusetts, estimated payments are generally required when you expect to owe more than $400 in state tax. Estimated payments are usually due in April, June, September, and January. Missing them or underpaying can result in penalties even if you pay in full at tax time. We calculate your estimated payments and set you up with a schedule, so you avoid surprises and penalties.
What Business Expenses Can I Deduct?
Generally, you can deduct expenses that are ordinary and necessary for running your business, which lowers your taxable income. Common deductions include rent, utilities, supplies, employee wages, contractor payments, business insurance, professional services, vehicle and travel expenses, and a portion of home office costs when you qualify. The key is proper documentation. Deductions that are poorly documented or disproportionate to your income can attract scrutiny. We help you identify every legitimate deduction while keeping your records clean and defensible.
Business Taxes FAQ
Should my business be an LLC, S-corp, or something else?
The right structure depends on your income, growth plans, and how you want to handle self-employment taxes. Each has different tax implications. We help you understand the tradeoffs so you can make an informed decision, and we coordinate the filings for whichever structure you choose.
: What is the Massachusetts corporate excise tax?
It is the tax Massachusetts imposes on corporations, calculated as 8% of net income plus an amount based on tangible property or net worth, with a minimum excise of $456. Both C corporations and S corporations are subject to it. We calculate and file this for you.
What happens if I file my business taxes late?
Massachusetts charges a late-filing penalty of 1% per month of the unpaid tax and a separate late-payment penalty of 1% per month, each up to a maximum of 25%, plus interest. Filing on time, even if you cannot pay in full, minimizes penalties.
Can you handle both my business and personal taxes?
Yes, and for most small business owners this is the smart approach. Because business income often flows onto your personal return, having the same team handle both ensures consistency and maximizes your overall tax position.
Do you work with businesses that keep records in Portuguese?
Yes. Our bilingual team works with Portuguese and Spanish-speaking business owners and can work through your records and explain everything in your preferred language.
I am starting a new business. When should I talk to you?
As early as possible. Decisions you make when starting out, like your entity structure and recordkeeping systems, affect your taxes for years. Getting guidance up front saves money and headaches later.