How to Start an LLC in Massachusetts

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 a Massachusetts LLC search on the Secretary of the Commonwealth's website.

To learn more about searching for a Massachusetts LLC name, read our full guide.

3. Is the URL available? We recommend that you check online to see if your business name is available as a web 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.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

We reviewed and ranked the best LLC services. Find out which is best for you.

Step 2: Choose a Resident Agent in Massachusetts

You are required to appoint a Massachusetts resident agent for your LLC. A resident agent is more commonly known as a registered agent in other states.

What is a resident agent? A resident agent is an individual or business entity 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 a registered agent service, authorized to transact business in Massachusetts. You may elect an individual within the company, including yourself.

Step 3: File the Massachusetts LLC Certificate of Organization

To create an LLC in Massachusetts, you will need to file the Certificate of Organization with 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 be member-managed vs. manager-managed.

For help with completing the form, visit our Massachusetts Certificate of Organization guide.

If you’re expanding your existing LLC to the state of Massachusetts, you will need to form a foreign 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 our Massachusetts LLC operating agreement guide.

Step 5: Get a Massachusetts LLC EIN

You can get an Employer Identification Number (EIN) 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 a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

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: You do not need an SSN to get an EIN. Learn more here.

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 done online, 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

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.

Find out how to get the necessary business licenses and permits for your LLC with our Massachusetts Business License guide.

Recommended: Consider having a professional service research your business’s licensing requirements. Read our best business license services review.

Massachusetts LLC Tax Filing Requirements

It's important to stay up to date on Massachusetts 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 a seller's permit through the Massachusetts Department of Revenue website.

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 both Unemployment Insurance Tax with the Massachusetts Department of Unemployment Assistance and Employee Withholding Tax through the MassTaxConnect portal.

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 the Massachusetts Department of Revenue website. 

Federal:
You’ll also need to report your federal income tax using either Form 1065 (multi-member LLC) or Form 1040 Schedule C (single-member LLC).

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 are able to work in the US
• Report employees as "new hires" to the state
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your work space

Find out more information from the Massachusetts state website.

Common Questions About Massachusetts LLCs

Massachusetts Business Resources

Get Help Starting a Business in Massachusetts

Boston | Springfield | Worcester

State of Massachusetts Quick Links

• Massachusetts Limited Liability Company Information
• Contact the State of Massachusetts
• Massachusetts LLC Statutes