LLC Cost in Massachusetts – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
massachusetts_state_seal

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.

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

  • 100% accuracy guarantee

  • Worry-free service

  • Great customer support

$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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:

StateFiling FeeAnnual Fee/ Biennial FeeSales Tax
Massachusetts LLC$500$5006.25%
Connecticut LLC$120$806.35%
Rhode Island LLC$150$507.00%
New Hampshire LLC$100$1000%
Vermont LLC$125$356.00%

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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

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 primary costs of maintaining an LLC in Massachusetts is the annual filing fee. The state requires LLCs to file an Annual Report with the Secretary of the Commonwealth of Massachusetts each year. This filing fee is necessary to keep the LLC in good standing with the state and legally operating. Failure to file the Annual Report can result in penalties and potential dissolution of the LLC.

Another cost to consider when maintaining an LLC in Massachusetts is the cost of hiring a Registered Agent. A Registered Agent is an individual or company designated to receive legal documents and correspondence on behalf of the LLC. While some LLC owners choose to serve as their own Registered Agent, others opt to hire a professional service to handle this responsibility. The cost of hiring a Registered Agent can vary depending on the service provider.

In addition to the annual filing fee and Registered Agent costs, LLC owners in Massachusetts should also be aware of potential additional expenses. For example, if the LLC undergoes any changes such as adding members, changing the business name, or relocating the business, there may be associated filing fees with the state.

It’s important for LLC owners in Massachusetts to budget for these ongoing expenses to ensure the continued operation of their business. By staying compliant with state requirements and maintaining good standing with the state, LLC owners can avoid potential legal issues and penalties.

While the cost of maintaining an LLC in Massachusetts may seem daunting to some entrepreneurs, it’s important to view these expenses as necessary investments in the long-term success of the business. By properly budgeting and planning for these ongoing costs, LLC owners can focus on growing their business and achieving their goals.

In conclusion, the cost of maintaining an LLC in Massachusetts is an important consideration for small business owners and entrepreneurs. By understanding the various expenses associated with running an LLC in the state and budgeting for these costs accordingly, business owners can set themselves up for success and ensure the continued operation of their venture.

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.

Leave a Comment