Fact Checked by Editorial Staff
Perhaps you are hoping to form a Massachusetts LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Massachusetts.
On this page, you’ll learn about the following:
Massachusetts LLC Cost of Filing
Here are the costs involved in forming an LLC in Massachusetts.
Cost of Filing Formation Certificates
The Massachusetts Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Massachusetts Secretary of State.
Massachusetts Domestic LLC
- Online Filing costs $500
- Annual Report filing costs $500
- Name Reservation costs $30
- By mail: Fill out the Application Form PDF, and submit it to the address, The Commonwealth of Massachusetts, Secretary of the Commonwealth, One Ashburton Place, Room 1717, Boston, Massachusetts 02108-1512
Massachusetts Foreign LLC
- Online filing: not available
- Annual Report filing costs $500
- Name Reservation costs $30
- By mail: Fill out the Application Form PDF, and submit it to the address, The Commonwealth of Massachusetts, Secretary of the Commonwealth, One Ashburton Place, Room 1717, Boston, Massachusetts 02108-1512
You can visit the Secretary of Commonwealth of Massachusetts website to learn more about the forms and fees.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Massachusetts LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Massachusetts, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $0 + State Fees |
|
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Massachusetts Department of Revenue for regulatory boards or agencies requiring licensing.
Massachusetts LLC taxes to be Paid
The business LLCs in the State of Massachusetts are subject to different State tax filing obligations. Though the fees may vary from county to county.
Massachusetts State Income tax
This is the State Tax levied on any income you pay to yourself. The State has a standard tax rate of 5% levied on the total amount of taxable income.
Massachusetts Sales tax
The standard rate of sales tax applicable is at the rate of 6.25%. Though the taxes may vary depending on the county and city.
Massachusetts Federal Self-Employment Tax
Any profit that Massachusetts LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Massachusetts Payroll Tax Withholding
If you hire employees in Massachusetts, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Massachusetts, read the table below:
| State | Filing Fee | Annual Fee/ Biennial Fee | Sales Tax |
| Massachusetts LLC | $500 | $500 | 6.25% |
| Connecticut LLC | $120 | $80 | 6.35% |
| Rhode Island LLC | $150 | $50 | 7.00% |
| New Hampshire LLC | $100 | $100 | 0% |
| Vermont LLC | $125 | $35 | 6.00% |
Massachusetts is the wealthiest state in the US. Its economy is largely reliant on technological research and development, the service sector, and tourism.
Other Costs
- Massachusetts Name Reservation: $30 for online filing or by mail
- Doing Business As (DBA): $50 per class for online filing or by mail
- Certified Document Copies: $7 + $2 per page.
- Certified of Good Standing: $12
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Massachusetts LLC: $100
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Massachusetts
To maintain an LLC in Massachusetts you will need to pay an annual fee of $500 along with sales tax at 6.25%, income tax at 5% and federal taxes.
One of the key expenses that LLC owners in Massachusetts have to consider is the filing of an annual report with the state. This report is due annually and failure to file it on time can result in penalties and fees. The cost of filing this report varies depending on your business entity and the services you use. It is important to keep in mind that this is a necessary expense to keep your LLC compliant with state regulations.
Aside from the annual report, another cost to factor in is the required annual fee to maintain your LLC in Massachusetts. This fee is required to be paid each year to keep your business entity active and in good standing with the state. It is essential to budget for this fee to ensure that your LLC remains operational and compliant with state laws.
Additionally, LLC owners in Massachusetts may need to consider the cost of hiring a registered agent. A registered agent is a person or entity that is designated to receive legal documents on behalf of the LLC. While some business owners may choose to act as their own registered agent, many opt to hire a professional service for added convenience and peace of mind. This is an additional expense that should be considered when budgeting for the maintenance of your LLC.
Furthermore, maintaining an LLC in Massachusetts may also involve costs associated with any necessary business licenses or permits. Depending on the nature of your business, you may be required to obtain specific licenses or permits to operate legally in the state. These costs can vary greatly depending on the industry and location of your business, but it is important to factor them into your overall budget to avoid any compliance issues down the road.
Overall, while the costs of maintaining an LLC in Massachusetts can add up, they are a necessary part of running a successful business. By understanding and budgeting for these expenses, business owners can ensure that their LLC remains compliant with state laws and regulations, allowing them to focus on growing their business rather than dealing with costly penalties or fines. Ultimately, investing in the maintenance of your LLC is an essential step towards long-term success and stability in the competitive business landscape of Massachusetts.
In Conclusion
The cost of Massachusetts is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.