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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
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.
The cost of maintaining an LLC in Massachusetts involves several factors that business owners should consider to ensure compliance with state regulations and operating effectively. One of the primary costs associated with an LLC in Massachusetts is the filing fees. When registering an LLC in the state, entrepreneurs are required to pay a fee to the Secretary of the Commonwealth, which may vary depending on the type of business and the services provided. This initial fee is a one-time expense incurred during the formation process of the LLC.
In addition to the filing fees, LLCs in Massachusetts are required to pay an annual report fee to the Secretary of the Commonwealth. This fee serves as documentation of the LLC’s current information, such as its registered agent, principal place of business, and members. The annual report fee is essential for maintaining active status and ensuring compliance with state regulations. Failure to file the annual report can result in penalties, fines, or even the dissolution of the LLC.
Maintaining an LLC in Massachusetts also involves administrative costs, such as obtaining business licenses and permits to operate legally. Depending on the nature of the business, entrepreneurs may need to acquire specific permits from state and local government agencies. These licenses and permits incur additional expenses that business owners must budget for when operating an LLC in Massachusetts.
Another cost associated with maintaining an LLC in Massachusetts is the requirement to keep accurate financial records and file annual tax returns with the Department of Revenue. The costs of hiring an accountant or bookkeeper to assist with financial reporting can add to the overall expenses of running an LLC in the state. Failure to comply with tax regulations can result in penalties and legal consequences, emphasizing the importance of proper financial management for LLCs in Massachusetts.
Overall, the cost of maintaining an LLC in Massachusetts varies depending on the size and industry of the business. By understanding the various expenses involved in operating an LLC in the state, entrepreneurs can plan effectively and budget accordingly to ensure the smooth operation of their business. While the costs of maintaining an LLC in Massachusetts may seem daunting, the benefits of liability protection and operational flexibility make it a worthwhile investment for many entrepreneurs.
In conclusion, entrepreneurs considering forming an LLC in Massachusetts should carefully assess the cost implications and requirements associated with maintaining the business structure. By proactively addressing the expenses of filing fees, annual reports, administrative costs, and financial compliance, business owners can ensure the successful operation of their LLC in the state. Understanding the cost of maintaining an LLC in Massachusetts is essential for making informed decisions and mitigating potential risks that may arise during the business’s lifetime.
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.