How Much Does It Cost to Start an LLC in Massachusetts?

Massachusetts LLC Online Filing Fee: $500

The main cost tostart an LLC in Massachusettsis the $500 fee to file your LLC's Certificate of Organization online with the Massachusetts Secretary of the Commonwealth.

For a look at LLC costs in every state, read our otherCost to Start an LLCandHow to Form an LLCguides.

Cost to Form a Foreign LLC in Massachusetts

If you already have an LLC that is registered in another state and you’d like to expand your business into Massachusetts, you’ll need to register your LLC as aforeign LLC in Massachusetts.

The cost for registering aMassachusetts foreign LLC is $500. You can register a foreign LLC in Massachusetts by filingForeign Limited Liability Company Application for Registration. This can also be doneby mail.

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 60 days prior to LLC formation by filing anApplication of Reservation of Nameand paying the $30 filing fee. The reservation can be extended for another 60 days for an additional $30.

Business Certificate

You apply for a business certificate, also called aDBA, in the city or cities where you do business. The filings fee varies depending on the location.

Seven Basic Steps to Start an LLC in Massachusetts

Step 1:Name Your Massachusetts LLC
Step 2:Choose a Registered Agent
Step 3:File a Certificate of Organization
Step 4:Create an Operating Agreement
Step 5:Get an EIN
Step 6:File the Annual Report
Step 7:Keep Your Company Compliant

Step 1: Name Your Massachusetts LLC

When you name your Massachusetts LLC, you’ll need to choose a name that:

1. Is available for use in the state of Massachusetts
2. Meets Massachusetts naming requirements
3. Is available as a web domain

Recommended:Visit ourStart an LLC in Massachusettsguide for detailed naming rules and instructions for registering a business name in Massachusetts.

Not sure what to name your business?Check out ourHow to Name a Businessguide and freeLLC Name Generator.

We recommend that you check online to see if your business name is available as aweb domain. 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.

Step 2: Choose a Resident Agent

All LLCs in Massachusetts must appoint aresident agent. A resident agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for acceptingservice of processin the event your business is sued.

Your Massachusetts resident agent must:

• Be at least 18 years or older
• Have a physical address in Massachusetts
• Be available during normal business hours to accept service of process

In Massachusetts, your resident agentmustconsent to appointment by signing theCertificate of Organizationor a separate form.

Step 3: File the Certificate of Organization

TheMassachusetts Certificate of Organizationis a document that is filed with the Massachusetts Secretary of the Commonwealth to form an LLC. The fee for filing a Certificate of Organization is $500 online.

For detailed instructions for completing the Certificate of Organization, visit ourHow to File the Massachusetts Certificate of Organizationguide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Massachusetts LLCs, 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.

Step 5: Get an EIN

What is an EIN?AnEINor Employer Identification Number is a nine-digit number issued by theInternal Revenue System (IRS)to identify a business for tax reporting purposes.An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN?An EIN number is required for the following:

• Opening abusiness bank account
• Hiring employees

Step 6: 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).

Step 7: Keep Your Company Compliant

As a business entity, your Massachusetts LLC must adhere to federal, state, and local statutes. Specific licenses and permits will be required depending on your business activities.

• Understand Massachusetts LLC Licensing:The Massachusetts Business License guide offers valuable insights into obtaining necessary licenses and permits for your LLC. Engaging a professional service to delve into your business's licensing needs can be a wise decision.
• Manage Taxes for Your Massachusetts LLC:Staying current with tax commitments is essential for maintaining your LLC's standing. This includes sales tax, employer taxes (i.e., UI and withholding taxes), and individual income tax (both state-level and federal-level).
• Employee Hiring in Massachusetts:Complying with legal requirements when hiring involves several steps, such as confirming their eligibility to work in the US, reporting new hires to the state, withholding employee taxes, and displaying labor law posters in your workspace.

These measures are integral for maintaining the regulatory compliance of your Massachusetts LLC.