Forming an Massachusetts LLC

(2025 Guide)

2025 LLC Guide

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How to Start an LLC in Massachusetts (Step-by-Step Guide)

Discover how to start an LLC in Massachusetts, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in Massachusetts, you need to submit a Certificate of Organization to the Massachusetts Secretary of the Commonwealth. The filing fee is $520, and approval typically takes about 2 days.



Here are the 5 steps you should follow:
Choose a Name for Your LLC
Appoint a Registered Agent
Submit the Certificate of Organization
Draft an Operating Agreement
Obtain an EIN


If you prefer to set up your LLC on your own, refer to our free guide below.

If you’d rather have someone handle it for you, we suggest hiring Northwest Registered Agent.

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

What is the cost to establish an LLC in Massachusetts?

Starting an LLC in Massachusetts costs $520, with an additional $520 due annually. What do these fees cover? The initial $520 fee is for filing the Certificate of Organization, which officially creates the LLC. The annual $520 fee is for the Annual Report, a required filing to maintain good standing for your LLC. For more details on LLC expenses, visit LLC Costs in Massachusetts.

How quickly can you form an LLC in Massachusetts?

Filing by mail will see your LLC approved in 1-2 business days, plus mail time. Filing online also results in approval within 1-2 business days. For updates on potential delays, refer to How long does it take to get an LLC in Massachusetts.

Here’s how to establish an LLC in Massachusetts

1. Search Your LLC Name

Begin by searching your LLC name to ensure it’s available within the state. This is crucial because two businesses can’t share the same name in Massachusetts.

First, conduct a search for your business name and compare it with existing businesses in the state. You can verify the uniqueness of your desired LLC name by using the Corporations Division Business Entity Search.

Second, familiarize yourself with the state’s naming rules to ensure your LLC gets approved.

We’ll delve into both aspects in more detail here: Massachusetts LLC Name.

Note: 

Most people choose “LLC”.

2. Select a Massachusetts Registered Agent

The following step involves selecting a Registered Agent. A Massachusetts Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Massachusetts Limited Liability Company.

Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:

You
A friend or family member
A Registered Agent Service

Massachusetts mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.

If you lack an address in Massachusetts or desire increased privacy, you can opt for a Registered Agent Service for your LLC.

We suggest Northwest Registered Agent

One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.

Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. Submit a Certificate of Organization

To establish an LLC, you must submit the Massachusetts Certificate of Organization.

This document is filed with the Massachusetts Secretary of the Commonwealth: Corporations Division. The fee for filing the Certificate of Organization online is $520. This is a one-time cost for setting up your LLC. If you prefer to handle this yourself, check out our detailed guide: Massachusetts Certificate of Organization. Alternatively, you can hire a service to file it on your behalf.

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Draft an LLC Operating Agreement

An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.

Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.

Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Massachusetts Operating Agreement video for a step-by-step guide on how to complete it.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Obtain an EIN for Your LLC

The following step is to secure a Massachusetts EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.

An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits

How much does an EIN cost? The IRS provides an EIN at no charge.

How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.

How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.

What should I do after my LLC is approved?

 Once your LLC is approved, there are a few more steps to take.

Open a business bank account for your LLC

This will simplify accounting and record-keeping for your business finances. A separate business bank account also helps maintain your personal liability protection by distinguishing your business finances from personal ones.

Obtain business licenses and permits

The good news is Massachusetts doesn’t require a state general business license. However, your LLC location might require a local business license or permit. For instance, starting a daycare may necessitate a city or county business license. More details are available on our Massachusetts Business License page.

File an LLC Annual Report

Every Massachusetts LLC must file an Annual Report each year to remain in good standing with the state. How much does it cost? The Annual Report fee is $520 annually. When is the report due? It’s due every year on your LLC’s anniversary date. For example, if your LLC was approved on February 15, 2025, your reports are due by February 15 each year. Your first Annual Report is due the year after approval, meaning if approved on February 15, 2025, your first report is due by March 31, 2026. Reports can be filed online or by mail, with online filing being the easier option. Follow our step-by-step guide here: Massachusetts LLC Annual Report.

File and pay taxes

LLCs don’t pay federal income tax; instead, LLC members pay taxes on their personal tax returns. How will your LLC be taxed? By default, the IRS taxes an LLC based on its number of owners: a Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can opt for your LLC to be taxed as a C-Corporation or S-Corporation. Besides federal taxes, you’ll also need to consider state and local income taxes, as well as sales tax. Learn more in Massachusetts LLC Taxes.

Helpful Resources

How to Start an LLC in Massachusetts FAQs

Can I start an LLC online in Massachusetts?

Absolutely, you can establish your LLC online in Massachusetts. The fee for filing the Certificate of Organization is $520. Once you file online, your LLC will typically be approved within 1-2 business days.

One major advantage of an LLC is the protection of your personal assets. This means that if your business faces a lawsuit, your personal assets—such as your home, vehicles, and bank accounts—are shielded. This protection covers all LLC owners (referred to as LLC Members), regardless of whether it’s a Single-Member LLC or a Multi-Member LLC. All members are safeguarded from business debts and liabilities. This protection isn’t available if you operate as a Sole Proprietorship or Partnership, where owners aren’t shielded in lawsuit scenarios. Hence, LLCs are a more popular business structure. Another perk is the pass-through taxation of an LLC. This indicates that the LLC itself doesn’t incur federal income taxes. Instead, the profits “pass through” to the LLC Members, who then pay taxes through their personal tax returns. Similarly, Massachusetts state income taxes align with this federal tax approach for LLCs. For further details, please see How are LLCs taxed.

Whether Massachusetts is a suitable state to start an LLC depends on your location and business operations. If you reside in or conduct business within Massachusetts, it’s advisable to start your LLC there. Contrary to what many websites suggest about favorable tax rates in certain states, these don’t benefit you if you aren’t living or operating there. For instance, if you form an LLC in Delaware but live and work in Massachusetts, you’ll need to register your Delaware LLC in Massachusetts, incurring additional fees. You’ll also have to pay Massachusetts taxes, leading to unnecessary costs and complications without benefits. In conclusion, if you live and work in Massachusetts, it’s a good state to establish your business. If not, it’s not recommended.

Real estate exception: If you are buying real estate outside Massachusetts, it’s best to form your LLC in the state where the property is located. For more insights, please see Best State to Form an LLC.

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