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 |
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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
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.
When it comes to the cost of maintaining an LLC in Massachusetts, it is important to factor in both formation expenses and ongoing operating expenses.
The first and perhaps the most apparent cost is the formation fees. To establish an LLC in Massachusetts, entrepreneurs are required to file Articles of Organization with the Secretary of State’s office, which necessitates a filing fee. This fee can vary from state to state, and while it remains relatively minimal in Massachusetts, it is still essential to consider it in the overall budget.
Apart from filing fees, business owners may also consider hiring a professional registered agent service. Appointing a registered agent ensures the company has a designated person or entity responsible for accepting legal documents and official correspondence on behalf of the LLC. Although individuals may opt to serve as their own registered agent, hiring a professional service provider can provide added convenience and peace of mind. However, it is worth weighing the pros and cons of this service, including the associated costs, to determine if it is the right choice for your specific business needs.
Furthermore, ongoing operating expenses are also an essential aspect when calculating the cost of maintaining an LLC in Massachusetts. These expenses typically include but are not limited to annual report fees, taxation fees, and any necessary business licenses.
Massachusetts requires every LLC to file an Annual Report with the Secretary of State’s office, accompanied by a fee. This report ensures that the state’s records remain up to date with pertinent information regarding the LLC’s management and members. It is vital to factor in this expense when outlining the cost of maintaining an LLC.
Additionally, businesses in Massachusetts are subject to state-level taxes, potentially, corporate excise taxes. Although the exact tax obligations depend on various factors such as the LLC’s structure and income, it is essential to seek guidance from a professional accountant or tax advisor to ensure compliance.
Moreover, certain business activities may necessitate specific permits or licenses, adding another layer of expense. Whether it is building permits, professional licenses, or industry-specific permits, aspiring entrepreneurs should research and familiarize themselves with the necessary qualifications and financial implications.
While the endeavor of establishing and maintaining an LLC in Massachusetts undoubtedly requires financial consideration, it is crucial to recognize that these costs are crucial investments for the business’s long-term success. Maintaining compliance with state regulations, protecting personal assets, and ensuring smooth operations are paramount in guaranteeing the stability and growth of any LLC.
Therefore, before embarking on the journey of establishing an LLC in Massachusetts, potential business owners must carefully assess all associated costs and plan accordingly. Thorough research, seeking necessary professional advice, and building a sound financial strategy can aid entrepreneurs in successfully navigating the expenses tied to an LLC, while still reaping the benefits it offers.
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.
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.
