How to Start an LLC in Massachusetts: Step-by-Step Guide
Last Updated:byTRUiC Team
To form aMassachusetts LLC, you'll need to file the Certificate of Organization with the Massachusetts Secretary of the Commonwealth, which costs $500. You can apply online, by mail, by fax, or in person.
Follow our step-by-stepHow to Start an LLC in Massachusettsguide to get started today.
- Name your Massachusetts LLC
- Choose a Resident Agent
- File the Certificate of Organization
- Create an Operating Agreement
- Get an EIN
Learn more about LLCs and their benefits in our118bet金博宝
guide. To form an LLC in any state, visit our如何建立一个有限责任公司guide.
Step 1: Name Your LLC in Massachusetts
Choosing a company name is the first and most important step of setting up an LLC in Massachusetts. Be sure to choose a name that complies with Massachusetts naming requirements and is easily searchable by potential clients.
1. Follow the naming guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC, LC, L.L.C., or L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- Your name must be distinguishable from any other Massachusetts limited liability company, corporation, or limited partnership.
2. Is the name available in Massachusetts?Make sure the name you want isn't already taken by doing aMassachusetts LLC searchon the Secretary of the Commonwealth's website.
要了解更多aboutsearching for a Massachusetts LLC name, read our full guide. Find name ideas using our free LLCname generator.
3. Is the URL available?We recommend that you check online to see if your business name is available as a网络域. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.
Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.
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FAQ: Naming a Massachusetts LLC
What is an LLC?
LLC is short forLimited Liability Company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. An LLC is one of several business structures, such as a sole proprietorship, partnership, and corporation (C corp and S corp). For more information, read our118bet金博宝 .
Watch our video:What is an LLC?
How do I name my Massachusetts LLC?
You must follow the Massachusetts LLC naming guidelines when choosing a name for your LLC:
- Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
- Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
- Receive the proper licensing when using the words such as lawyer or doctor.
If you are having trouble coming up with a name for your LLC, use ourLLC Name Generator. That will not only find a unique name for your business but an available URL to match.
After you get your business name, get a unique logo using ourFree Logo Generator.
Do I need to get a DBA or business certificate for my business?
Most LLCs do not need a DBA, known in Massachusetts as a business certificate. The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.
要了解更多about DBAs in your state, read ourHow to File a DBAguide.
Step 2: Choose a Resident Agent in Massachusetts
You arerequiredto appoint aMassachusetts resident agentfor your LLC. A resident agent is more commonly known as aregistered agentin other states.
What is a resident agent?个人或商业enti居民代理ty responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business's point of contact with the state.
Who can be a resident agent?A resident agent must be a resident of Massachusetts or a corporation, such as aregistered agent service, authorized to transact business in Massachusetts. You may elect an individual within the company, including yourself.
Recommended:Check out thesebest registered agent services.
FAQ: Nominating a Registered Agent
Can I be my own resident agent in Massachusetts?
Yes. You or anyone else in your company can serve as the resident agent for your Massachusetts LLC.
Read more aboutbeing your own resident agent.
Is a registered agent service worth it?
Using a professional registered agent service is an affordable way to manage government filings for your Massachusetts LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
For more information, read our article onMassachusetts resident agents.
Step 3: File the Massachusetts LLC Certificate of Organization
To create an LLC in Massachusetts, you will need to file theCertificate of Organizationwith the Secretary of the Commonwealth. You can apply online, by mail, by fax, or in person.
Now is a good time to determine whether your LLC will bemember-managed vs. manager-managed.
File the Certificate of Organization
OPTION 1:File Online With the Commonwealth of Massachusetts
- OR -
OPTION 2:File by Mail, by Fax, or In Person
State Filing Cost:$500, payable to The Commonwealth of Massachusetts (Nonrefundable)
Filing Address:
William Francis Galvin
Secretary of the Commonwealth
One Ashburton Place, Room 1717
Boston, MA 02108
Fax:(617) 624-3891
Note:Fax filings must include acover sheet.
For help with completing the form, visit ourMassachusetts Certificate of Organizationguide.
If you’re expanding your existing LLC to the state of Massachusetts, you will need to form aforeign LLC.
FAQ: Filing Massachusetts LLC Documents
How long does it take to form an LLC in Massachusetts?
Filing the Certificate of Organization can take four hours online post-payment or four to five business days by mail. Expedited filings are also available.
What is the difference between a domestic LLC and a foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
Read ourWhat is a Foreign LLCarticle to learn more.
How much does it cost to start a Massachusetts LLC?
The cost to start a Massachusetts LLC is $500.
要了解更多, read our guide on thecost to form a Massachusetts LLC.
Step 4: Create a Massachusetts LLC Operating Agreement
A Massachusetts LLC is not required to have an operating agreement, but it's a good practice to have one.
What is an operating agreement?An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important?A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read ourMassachusetts LLC operating agreementguide.
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FAQ: Creating a Massachusetts LLC Operating Agreement
Do I need to file my operating agreement with the Commonwealth of Massachusetts?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
Step 5: Get a Massachusetts LLC EIN
You can get an Employer Identification Number (EIN), also known as a Federal Employer Identification Number, from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.
Why do I need an EIN?An EIN number is required for the following:
- To open abusiness bank accountfor the company
- For federal and state tax purposes
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Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.
Get an EIN
Option 1: Request an EIN from the IRS
- OR -
Option 2: Apply for an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax:(855) 641-6935
Fee:Free
FAQ: Getting an EIN
How do I get an EIN if I don’t have a Social Security number?
An SSN isnotrequired to get an EIN. You can simply fill outIRS Form SS-4and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application.Learn more about applying as an international applicant.
Do I need an EIN for my LLC?
All LLCs with employees, or any LLC with more than one member, must have an EIN. This isrequiredby the IRS.
Learn why we recommendalwaysgetting an EIN and how to get one for free in ourDo I Need an EIN for an LLCguide.
What tax structure should I choose for my Massachusetts LLC?
When you get an EIN, you will be informed of the differenttax classification optionsthat are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing theS corporation (S corp) status. To learn more, read ourLLC vs. S Corpguide.
Considering Using an LLC Formation Service?
We reviewed and ranked the top LLC formation services. Find out which is best for you.
How to Maintain Your LLC
File the Annual Report
Massachusetts requires that LLCs file an annual report with the Corporations Division of the Secretary of the Commonwealth.
Filing can be doneonline,by mail, by fax, or in person. Fax filings must include a cover sheet. The fee for the annual report is $500 ($520 for hard copy filings), due every year by the LLC's anniversary date (i.e., the date you initially registered your LLC with the state).
Steps After LLC Formation
Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account to separate your business and personal assets, get business insurance, and stay up to date with state reporting requirements.
Visit ourAfter Forming an LLCguide to learn more.
What is the corporate veil?
Business entities, such as LLCs and corporations, protect their owners from personal liabilities for the business’s debts. This protection is often referred to as the corporate veil. Learn how to protect your LLC's corporate veil in ourguide.
Keep Your Company Compliant
Massachusetts Business Licenses & Permits
To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.
鳍d out how to get the necessary business licenses and permits for your LLC with ourMassachusetts Business Licenseguide.
Recommended:Consider having a professional service research your business’s licensing requirements. Read ourbest business license servicesreview.
Massachusetts LLC Tax Filing Requirements
It's important to stay up to date onMassachusetts LLC taxes.
Depending on the nature of your business, you may be required to register for one or more forms of tax:
Sales Tax
If you are selling a physical product, you’ll typically need to register for aseller's permitthrough theMassachusetts Department of Revenuewebsite.
Massachusetts' sales tax rate is 6.25%. There is no additional local sales tax.
Employer Taxes
If you’re hiring employees, you’ll need to register for bothUnemployment Insurance Taxwith the Massachusetts Department of Unemployment Assistance and Employee Withholding Tax through theMassTaxConnectportal.
Income Tax
State:
Massachusetts has a flat 5% income tax rate for individuals. State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit theMassachusetts Department of Revenue website.
Federal:
You’ll also need to report your federal income tax using eitherForm 1065(multi-member LLC) orForm 1040 Schedule C(single-member LLC).
Read ourLLC Tax Guideto learn more about federal income taxes for LLCs.
Hiring Employees in Massachusetts
If you plan to hire employees for your Massachusetts LLC, stay compliant with the law by following these steps:
- Verify that new employees areable to work in the US
- Report employeesas "new hires" to the state
- Provideworkers' compensationinsurance for employees
- Withhold employee taxes
- Printworkplace compliance postersand place them in visible areas of your work space
鳍d out more information from theMassachusetts state website.
Check out our雇佣你的小企业指南for resources like sample job descriptions, payroll service reviews, and more.
What is the minimum wage in Massachusetts?
The minimum wage in Massachusetts is $15 per hour.
How often do I need to pay employees in Massachusetts?
Massachusetts requires employers to pay employees weekly.