If you already have an LLC in another state and want a Massachusetts LLC, then starting an LLC would be somewhat different. You must register as a foreign LLC. We have here a guide on how you can qualify and register for a foreign LLC in Massachusetts.
On this page, you’ll learn about the following:
- Forming a Massachusetts Foreign LLC
- Steps to Filing Massachusetts Foreign LLC Online
- After Forming Massachusetts Foreign LLC
Forming a Massachusetts Foreign LLC
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. To start a foreign LLC in Massachusetts, you need to register it with the Massachusetts Secretary of State.
Step 1: Choose Massachusetts Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements at the Massachusetts Secretary of State. Your LLC’s legal name outside of Massachusetts will be listed on the application, along with the name it will use in Massachusetts. Take note of the requirements for naming your LLC.
Check name availability at Massachusetts’s business entity names and reserve your LLC name.
Step 2: Select Massachusetts Foreign LLC Registered Agent
You’ll need a registered agent to form a foreign LLC in Massachusetts and take note that a Massachusetts registered agent must have a local address. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries:
Step 3: File Registration of Massachusetts Foreign LLC
Fill out and submit a Foreign LLC Application for Registration form via email to [email protected] or by mail to Secretary of the Commonwealth One Ashburton Place, Room 1717, Boston, Massachusetts 02108-1512.
Include the following:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- LLC’s principal office and mailing addresses.
- LLC formation state and date.
- Registered agent’s name and address in Massachusetts
- Date when your LLC will start operations in Massachusetts.
- Credit card information on the last page of the form for the $150 application fee.
The LLC cost in Massachusetts, even for foreign LLCs will differ between online filing and by mail.
Step 4: Determine How Your Massachusetts Foreign LLC is taxed
Foreign LLCs are also subjected to the Massachusetts Business Privilege Tax, and they must file LLC annual reports each year.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Steps to Filing Massachusetts Foreign LLC Online
When you are registering for the foreign LLC in the State of Massachusetts, you will have to submit your Application for Registration of foreign LLC with the Secretary of the Commonwealth which costs $500. After approval, you will receive a Verification Certificate from the State Office. The State does not offer online filing options for foreign LLC. We have explained the aspects you need to cover when you apply for Massachusetts Foreign LLC.
- Download the Application Form PDF on your system.
- Read the instructions provided in the form carefully and fill the form accordingly.
- Before making the payment, thoroughly review the information provided in the form to be correct and accurate.
- Make sure to fill the form by typing. The State office does not accept the form filled in ink or any other form of handwritten form.
- Attach your name reservation application along with the reservation fee.
- You are also required to attach the ‘Cover Sheet’, which is provided on the third page of the application form PDF.
- The State mandates the filing of the Certificate of Existence or Good Standing issued by an officer or an agency properly authorized by the State of Original Jurisdiction.
- Make the payment of $500 to the ‘Secretary of the Commonwealth’ via check or by card for the faxed forms.
- If you are filing the application by fax, you are also required to attach the Fax Voucher Cover Sheet. For additional instructions about fax filings, you can read the fax filing guidelines issued by the Secretary of the Commonwealth of Massachusetts office.
- Attach all the documents, i.e., the application form, cover sheet, Certificate of Existence or Good Standing, Filing fee, name reservation form and fee, and Fax Voucher Cover Sheet in case of faxed filing together.
- For mail or in-person filing, submit the documents to the following address: Secretary of the Commonwealth One Ashburton Place, Room 1717, Boston, Massachusetts 02108-1512
- To fax your documents, place the fax voucher coversheet, as the first and only cover sheet, on top of your fax filing and fax it to 617-624-3891.
After Forming Massachusetts Foreign LLC
Here are added things you need to accomplish after forming your Massachusetts Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search.
- File LLC annual reports and Business Privilege Tax.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
It is convenient plus easy to file for the foreign LLC if you are doing it online. The steps are very easy and that’s why it’s possible to go along with the steps and form a foreign LLC in Massachusetts.
How Much Does It Cost to Register a Foreign LLC in Massachusetts
To register as a foreign LLC in Massachusetts, you can file through mail, fax, in-person or online by paying $500 to the Commonwealth of Massachusetts.
Forming a limited liability company (LLC) in Massachusetts allows business owners to protect their personal assets from the liabilities of their business. A foreign LLC is an LLC formed outside Massachusetts and registered to do business in the state. Registering a foreign LLC in Massachusetts requires paying various fees and filing various documents. The costs associated with registering a foreign LLC in Massachusetts are not one-size-fits-all and vary based on the LLC’s size and structure.
The first step to registering a foreign LLC in Massachusetts is to reserve the LLC’s name. This can be done online or by mail. The cost is $50, and the name reservation is valid for 60 days. The next step is to file the Certificate of Authority, which is the document that registers the LLC in Massachusetts. The cost to file the Certificate of Authority is $500. The Certificate of Authority must be accompanied by a copy of the LLC’s Certificate of Organization from its home state, which is typically free.
In addition to the filing fees, foreign LLCs must also pay an annual excise tax and report the LLC’s income to the Massachusetts Department of Revenue. The annual excise tax is $500 for LLCs with more than $12 million in gross receipts. For LLCs with gross receipts of $12 million or less, the annual excise tax is $250.
For LLCs with more than $12 million in gross receipts, the annual income tax filing fee is $500. For LLCs with gross receipts of $12 million or less, the annual income tax filing fee is $250. Additionally, the LLC must pay an annual report fee of $500 to the Massachusetts Secretary of State.
In addition to the filing fees, foreign LLCs must also obtain a Certificate of Good Standing from their home state. This document is required to prove that the LLC is in good standing in its home state and is typically free.
Finally, foreign LLCs must maintain a registered agent in Massachusetts. The registered agent’s role is to receive service of process and other legal documents on behalf of the LLC. The cost of a registered agent varies, but typically ranges from $100 to $300 per year.
In summary, the costs associated with registering a foreign LLC in Massachusetts include filing fees, annual excise tax, annual income tax filing fee, annual report fee, and the cost of a registered agent. The exact cost depends on the LLC’s size and structure.
If your LLC is formed under the laws of another state, it is referred to as a foreign LLC in Massachusetts.
Businesses incorporated outside of the state where they operate must have “foreign qualifications” issued in the other states.
A domestic LLC is a company registered in Massachusetts as an LLC. The entity type that has a physical presence in another state is a foreign LLC.
Starting a foreign LLC in Massachusetts does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. Get a professional registered agent and form your foreign LLC anywhere without a hassle.