Start Your Massachusetts LLC

Quick facts about forming an LLC in Massachusetts

Filing Fee	$500 (online or by mail)
Processing Time	1-2 business days online, up to 2–3 weeks by mail
Annual/Biennial Report Fee	$500, due each year by your LLC’s anniversary date
Registered Agent Required	Yes, must have a physical address in Massachusetts
State Franchise Tax	None for LLCs
Business License	Not required statewide, but local permits may apply
Managing Authority	Massachusetts Secretary of the Commonwealth, Corporations Division

Starting your business is an exciting journey, but one that is filled with questions as well. While Massachusetts doesn’t make it difficult to set up shop with an LLC or limited liability company, an excellent way to protect yourself and your new company, there are a number of steps involved, and it is more expensive than doing business in many other states.

You need to either keep careful track of your records and the steps needed to form your LLC, or get help doing so. Let’s take a look at how to create your LLC, the specific steps involved, what happens afterward, and how to remain in good standing.

How to start a Massachusetts LLC in 4 easy steps

There are a few basic steps for forming an LLC in Massachusetts. Let’s take a look at each step in more depth in case you want to do file the LLC yourself:

1. Choose a business name
2. Choose a registered agent
3. File articles of organization
4. Pay the filing fee

Step 1: Choose a business name

First, you’ll want to choose a name that reflects your business goals, products, and services. (Think “Toys’R’Us.”) In some cases, a branded name is fine, but make sure your brand is prominently associated with your offerings so folks can build that association. (Think “Starbucks” or “Pepsi.”)

Before you commit to your name, use the MA Secretary of State Corporations Business Entity Search page hosted on the Secretary of the Commonwealth of Massachusetts website. Run a Massachusetts business entity search to make sure no one else has your name, which would disqualify you from using it. You should also perform a trademark search.

If you want to operate under a different business name than your umbrella name, you may do so using a DBA or “doing business as.” For instance, you might wish your main company to be your name, while your yoga studio, fitness brand, and smoothie shack all have their own names. You can learn if you need one and how to get it on the Massachusetts Business Certificates page.

Also, make sure to follow the required naming conventions, which say that you must indicate right there in your name that you are an LLC. To do so, you can add one of several appendages to the end of your business name:

• Limited liability company
• Limited company
• LC or L.C.
• LLC or LL.C.

Lastly, if you’ve settled on a title but aren’t ready to launch your business, you might wish to reserve your name. To do that, head to the Name Reservations page, fill out the correct paperwork, and pay your $30 filing fee.

Step 2: Choose a registered agent​

A registered agent is a person or company who receives important documents on behalf of your LLC. A Massachusetts registered agent is actually known as the “resident agent,” a difference between it and other states, but the meaning is the same. The requirements for a resident agent include:

• Residence in the state of Massachusetts
• A listed address, either the same as the LLC’s address or different
• The ability to receive documents during normal business hours

If you want, you can act as the registered agent for your LLC. However, you will need to list your address, and if your LLC operates out of the home, that means your personal address. For that reason, many LLCs, especially home LLCS, choose to hire a registered agent through another company (such as Tailor Brands, for instance).

Step 3: File articles of organization

Next up, you must file what most states call articles of organization, but which Massachusetts refers to as a Certificate of Organization. It’s basically the same thing: a document stating you’re an official business and have the right to operate in the state. (Note that you are only legally allowed to do business once the document has been approved, not once it has been filed.)

To do so, follow these steps:

Head to the Secretary of the Commonwealth’s LLC Information page.

1. Click the options for filing online or filling out a downloadable form.
2. Use your CID or PIN number to begin online filing, and if you don’t have either, contact [email protected] to learn the next steps.
3. If you’re filing by paper, fill out the forms completely.

Mailing address

If mailing your form, send it to:

Secretary of the Commonwealth
One Ashburn Place, Rm. 1717
Boston, MA 012108-1512

Necessary information

To fill out your Certificate of Organization, you will need the following information:

• Your EIN, if possible (though you can also get this after forming your LLC)
• Your name and chosen LLC indicator in the name
• The street address where your records will be maintained
• The nature of your goods and services
• Your registered agent’s name and business address
• A signature from the person forming the LLC

Step 4: Pay filing fees

The Massachusetts LLC filing fee is relatively steep compared to some other states, where it is less or even free: $500. If you expedite the filing, it will cost you an additional $520. You can either pay this online or mail a check along with your paper form.

1. Pay the processing fee as detailed in the pertinent form.
2. Make sure you include the filing fee along with your document.

Success! How long until your LLC is registered?

The usual processing time for the application is 1 to 2 business days, whether that is online or by mail. Of course, you do have to account for the mailing time for the latter method. You can also pay an expedited fee of $50 to have the LLC registration done in 24 hours. 

First steps after you have opened your LLC

Once you’ve filed your LLC Certificate of Organization, you’re well on your way to being able to do business with the state. You are not, however, done. Before you can legally operate, you will need to take several more steps, and you should consider a few optional ones as well.

Beneficial ownership information (BOI) report

Currently, a legal injunction has exempted businesses from filing a BOI report with FinCEN. However, you should keep track of whether the injunction gets lifted and you need to file one again. (Consider asking an expert for help if you’re not sure how to track this.)

Get an EIN

An EIN, or Employer Identification Number, is a number issued to you by the IRS. According to the IRS website, you must have one if you:

• Have employees
• Will need to pay employment, excise, or alcohol, tobacco, and firearms taxes
• Withhold taxes on income, other than wages, paid to a non-resident alien

If none of these specifications pertain to you, then you don’t need to get one. You will instead use your taxpayer identification number, usually your Social Security Number (SSN), to pay taxes to the federal government. However, there are still a number of good reasons to get an EIN. For instance, it:

• Decreases the chances that you will experience identity theft, because you don’t have to put your SSN on forms
• Helps you file your business taxes more easily
• Allows you to open a business bank account
• Expedites business loans, because you look more legitimate to banks
• Helps you get business credit

If you need to pay taxes to the state as part of your business (such as withholding income), then you’ll need an EIN no matter what.

Create an operating agreement

You are not required to have an Massachusetts LLC operating agreement, but it’s still a very good idea. You do have to maintain records of certain information, including:

• Capital contributions
• Distribution rights
• The dissolution process

You can speak to an expert or read more about the requirements in the MA Gen L ch 156c § 9 (2019) section of the law code. That said, it’s better to go all the way and set up a basic operating agreement to outline how the finances work, what member rights and responsibilities exist, and how you will deal with death, transfer of ownership, member departures, and dissolutions. That way, everyone’s on the same page from the start.

Moreover, you get extra protection from the state when you and other members agree upon and write down your procedures. Otherwise, in the event of a dispute, a judge will simply default to state regulations. While these do offer you some level of protection, it is unlikely to be as specific or comprehensive as it would be if you laid it out yourself.

Much like other documentation, you can get expert help if you’re not sure how to proceed on your own.

Get the required business license and permits

You don’t need a Massachusetts business license to operate in the state. Therefore, you needn’t worry about forms and fees at the state level.

However, that’s not the same as being free of license and permit requirements, as many local jurisdictions have strict rules about both. There exist any number of licenses and permits you may need, such as:

• City- or county-level business licenses
• Occupational licenses (e.g., medical, dental, law, clinical social worker, etc.)
• Licenses for regulated industries (e.g., childcare)
• Permits to operate specific equipment
• Permits to sell specific products

… and so on. Due to the wealth of possibilities, it is impossible to predict exactly which licenses and permits you’ll need, which is why it’s critical you do your research. If you are just selling goods out of the home (say, art), you may not need anything at all, but it’s important to do your due diligence.

Annual Report and Compliance

You are required to file a Massachusetts LLC annual report no later than 2½ months after the close of your fiscal year. This is true for both domestic and foreign businesses, and can be filed online or by hand and mailed in.

The annual report fee is $125, dropping to only $100 if you file online and bumping up to $150 if you file late.

Taxes

Paying your taxes in Massachusetts is similar to paying federal taxes. They’re due April 15th by default, or you can file for an extension, in which case they’re due October 15th instead.

To file online, you’ll need a MassTaxConnect account, which will offer detailed guidelines on how to fill out your return, file it electronically, and pay any taxes you owe – or get your refund. You will need an EIN in order to set your account up.

You can learn more about how to file your return here, or you can seek professional help if taxes just aren’t your area.

Other LLC costs and fees

There are a few other fees you might have to pay in Massachusetts in order to get your LLC going and keep it running. These include:

Service	Cost
Name reservation	$30
DBA or “doing business as” filing: Residents	$65
DBA or “doing business as” filing: Non-residents	$65 + additional $35

FAQ