A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses. LLC formation in Massachusetts is easy. Just follow these steps, and you'll be on your way.
How to get an LLC in MA in 6 steps
From choosing a business name to filing all the necessary paperwork, here’s how to start an LLC in Massachusetts.
1. Name your Massachusetts LLC
You'll need to choose a business name to include in your certificate of organization before you can register your LLC.
Names must comply with Massachusetts’ naming requirements. The following are the most important considerations to keep in mind:
- Your business name must include the words limited liability company, limited company, LC, L.C., LLC, or L.L.C.
- If desired, you may include the name of a member or manager in the LLC’s name.
- You can’t use a name that’s identical or deceptively similar to an existing entity’s name registered in MA (unless you have written consent from said entity).
- The business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
- Certain restricted words (bank, lawyer, attorney, credit union, etc.) may require additional documentation and licensure paperwork.
You can use the Secretary of the Commonwealth’s business entity search tool to determine if a particular business name is in use (and be sure to check for any similar variations).
If you aren't ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a $30 fee. In Massachusetts, names may be reserved for up to 60 days by paying the fee and submitting the proper form to the Secretary of the Commonwealth by mail or in person.
2. Choose your resident agent
Massachusetts requires you to appoint a resident agent (also known as a registered agent in other states) for your LLC.
Regardless of the title, a registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.
A registered agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service. According to Title XXII Chapter 156C, they must be::
- A domestic or foreign corporation authorized to conduct business in MA
- A resident with an address in Massachusetts
- On-site and available to accept documents during regular business hours
Further, LegalZoom can act as your resident agent in Massachusetts and make it easier to keep up with official business mail and compliance deadlines.
3. Prepare and file a certificate of organization
The certificate of organization, commonly known as articles of organization in other states, is the document that officially establishes your LLC in Massachusetts. Though it might seem complicated, you’ll just fill out a relatively simple online form and submit it. You can also send it by mail, fax, or in person.
To prepare your certificate, you'll need the following information:
- Your LLC name
- A business address where the LLC’s records will be maintained
- A reason and general character of why you formed the LLC
- An LLC's duration or time period over which the LLC will exist. In most cases, LLCs are perpetual, meaning the duration is indefinite. A perpetual LLC can be dissolved voluntarily or involuntarily. If your LLC exists for a purpose that will end at a specified date, you will specify that date here.
- The name, address, and signature of your resident agent
- The name and address of each manager (if any)
- The names and addresses of any people authorized to execute documents for the LLC (there must be at least one person if the LLC has no manager).
- Filer’s contact information
After you prepare the certificate, you’ll file it with the Secretary of the Commonwealth Corporations and pay the $500 filing fee to register your Massachusetts LLC properly. The state will issue you a certificate that confirms the LLC formally exists after the LLC's formation documents are filed and approved.
If there’s an issue with your application, the secretary’s office will contact you directly and explain how to amend the error.
Building a business is enough work as it is. We'll help you start your LLC with confidence.
4. Create an operating agreement
An operating agreement is a document that outlines the way your LLC will conduct business.
Massachusetts doesn't require an operating agreement to register your LLC, but the state recommends you create one to establish the rules and structure for your new business.
Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, Massachusetts courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
Your LLC operating agreement can include, but is not limited to, the following:
- LLC's name, principal address, and duration (if specified)
- LLC's members' percentage interests, rights, responsibilities, and voting powers
- Rules for holding meetings and taking votes
- Name and address of the resident agent
- Copy of the certificate of organization
- Purpose of the business
- The way profits and losses will be divided
- Procedure for admitting new members, as well as outgoing members
- Indemnification and liability clauses
Still, nothing says you need to create the operating agreement by yourself. You can use a Massachusetts LLC operating agreement template. An even better option is to simply tell us about your new LLC in Massachusetts, and we’ll create an operating agreement for you and any members to sign.
5. Get an employer identification number and open a business bank account
The nine-digit employer identification number (EIN)—also called a federal tax identification number—is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS for free, as well as through LegalZoom if you’d like some help.
The purpose of an EIN is to assist with the following:
- File and manage taxes at the federal level.
- Register with the Massachusetts Department of Revenue (DOR) for state taxes.
- Hire employees.
Once you receive your EIN, you can start to research and apply for business bank accounts for your MA LLC.
6. Register for taxes and Massachusetts business licenses
Next, you can register for business taxes through MassTaxConnect. LLCs (whether a single-member LLC or a partnership) are considered pass-through entities by default, which means each business owner will report business income on their personal tax returns. However, you can elect to have your LLC taxed as a corporation, both for federal and state taxes.
An additional requirement for LLCs might include making quarterly tax payments. Check with the state Department of Revenue and the IRS.
Additionally, Massachusetts requires businesses to collect a 6.25% sales and use tax on most goods and services. If you hire employees, you should also consider employer taxes, unemployment insurance, and workers’ compensation, among other employer tax obligations in MA.
New LLCs in Massachusetts might need to register for licenses and permits, but the state doesn’t require a general business license. Still, you might need the following certifications depending on your business activities and industry:
- Local permits from your city or county government
- An occupational board license
- An Office of Public Safety and Inspections (OPSI) License
For more information, you can contact your local government offices or review the Massachusetts professional licenses and permit requirements. Or, you can leave the license and permit search to LegalZoom, and we’ll find out what your LLC needs in MA.
LegalZoom can help you file your state's formation paperwork for as little as $0 + state filing fees.
Next steps after forming your Massachusetts LLC
Registering your LLC gives you a legal foundation to conduct business, but you might take a few additional steps before you officially launch.
Register a domain name
Even if you don't think you'll need a webpage, you probably will. At the very least, you should reserve the option of having one in the future by buying your domain name now. Before finalizing your LLC name, it's a good idea to check if the URL is available.
To do so, use domain registrars like GoDaddy, Namecheap, or Google Domains to search for your desired web address. Most businesses opt for a .com domain, though alternatives like .net or .biz can be used if your name isn’t available. Ideally, your domain should match your MA LLC name or be as close as possible to help customers find you.
With your URL secured, you can start to set up domain privacy, hosting, a professional email address, and a website. You might also register for a Google Business Profile if you want to be discovered through Google Search or Maps.
Obtain a certificate of good standing
If you open a business bank account, apply for loans, or move your business to a different state, you might need to request a certificate of good standing. You can obtain a certificate of good standing in two ways:
- Certificate from the Secretary of the Commonwealth. This type verifies your legal existence and compliance with state filing requirements ($25 fee).
- Certificate from the Department of Revenue. This type confirms your business is current with state tax obligations and has no outstanding tax issues (no fee).
You can request the Secretary of the Commonwealth’s certificate through their online portal, while the DOR certificate requires you to log in through MassTaxConnect. You should also check with the requesting party to determine which certificate you’ll need, if not both.
Consider a foreign LLC
If you move or expand your LLC outside Massachusetts, you’ll register as a foreign LLC in each state where you operate. In most cases, you’ll need to request a certificate of registration from the Massachusetts Secretary of the Commonwealth, which costs $12 and can be done through the same online portal for certificates of good standing.
You’ll provide this certificate to the new state’s Secretary of State (SOS) or similar agency that oversees business formation. However, be sure to research each state’s individual requirements or consult a business attorney for advice.
Annual filing requirements for Massachusetts LLCs
All LLCs doing business in Massachusetts must file an annual report with the Secretary of the Commonwealth Corporations Division by the anniversary date of the LLC and pay the $500 filing fee. Keep in mind that failure to submit the report on time may result in a loss of good standing or dissolution, so you should set a reminder to ensure you don’t miss it.
The report is similar to your initial certificate of organization and confirms your LLC’s key information, including the following:
- Business name and office address
- Resident agent details
- Names and addresses of managers
- Any significant changes to your business structure or operations
You can file your annual report the same way as for the certificate of organization—either online or by mail, fax, or in person. You can also work with LegalZoom, and we’ll take care of your annual report when it comes time to file it with the MA Secretary of the Commonwealth.
The cost of forming an LLC in Massachusetts
Starting an LLC in Massachusetts costs at least $500, with the LLC filing fee being one of the highest in the nation. However, additional services and optional filings can push costs well over $1,000.
- Certificate of organization (LLC filing fee): $500
- Resident agent service: $0 to $300 annually (free if you serve as your own agent)
- Name reservation (optional): $30
- Certified copies: $12 to $25
- Amendment filing: $100
- Changes to resident agent information: $25 (no fee if filed electronically)
- Expedited service fees: $3 to $20 (or 4.5% for orders over $500)
Some of these fees are one-time costs, while others, like registered agent services, are recurring annual expenses. You’ll also need to factor in the $500 annual report filing fee when budgeting for ongoing LLC maintenance costs.
Lastly, remember to budget for any required licenses or permits (plus their renewal fees), which vary widely in Massachusetts and depend on the services you offer.
How to start your Massachusetts LLC with LegalZoom
While you can handle the LLC formation process yourself, sometimes it’s just easier to leave it to the professionals—and LegalZoom is here to do it for you in three steps:
- Share your business details. Complete a questionnaire with basic information about your Massachusetts LLC.
- We’ll handle the paperwork. Based on your responses, we’ll prepare and submit all necessary paperwork to the MA Secretary of the Commonwealth.
- Make it official. Once the state approves your filing, we’ll send the completed LLC documents and guide you on the next steps.
If you’d like to move forward, you can start your LLC with us for $0 plus the $500 filing fees. We can also help with other compliance needs, whether that’s acting as your registered agent or reminding you when it’s time to file your annual report—all for upfront, predictable rates.
Start an LLC in Any State
FAQs
What are the benefits of registering an LLC?
Registering an LLC allows you to obtain permits or licenses, including health department permits, zoning permits, home occupation permits, professional licenses, and more. Registering also allows you to open business bank accounts and apply for business credit.
This business structure can also help protect the personal assets of LLC owners in the event of a lawsuit or dispute. Plus, they’re generally easier to establish than other entities that offer liability protection, such as corporations.
Do I need a business license for my MA LLC?
Massachusetts doesn’t require a general state business license, but your specific location or industry may have its own requirements. You can check with your city, county, and relevant state agencies to determine which licenses you’ll need, or you can use a service like LegalZoom.
How long does it take to form an LLC in Massachusetts?
Standard processing for new Massachusetts LLC applications may take between a few days and a couple of weeks, depending on how you apply. For faster processing, you can request expedited service for an additional fee based on your filing total.
How do I correct filing errors in MA?
If the Secretary of the Commonwealth finds an error in your certificate of organization, they’ll send a notice with instructions on how to correct it. However, unlike some other filings, Massachusetts doesn’t list a fee for correcting LLC filing errors.
How do I dissolve an LLC in Massachusetts?
To formally dissolve your LLC in Massachusetts, file a certificate of cancellation with the Secretary of the Commonwealth and pay a $100 fee. You should also ensure you’re compliant with all legal and tax obligations before submitting the certificate.
Rudri Bhatt Patel contributed to this article.
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