Should you form your LLC in Massachusetts? We've collected the relevant information that will help you make this decision.
- Taxed as a partnership
- Home to one of the top 20 metro areas in US
- Qualified workforce
- Disclosure of owners in original filing
- Competitive market
- High cost of living
Cost of doing business
- $520 filing fee / $500 annual statement
- Owners disclosed in original filing
Forming an LLC in Massachusetts
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, “Limited Company”, “LC”, “L.C.”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also several restrictions placed on words that could be misconstrued as relating the business to a government agency. Do a FREE name search now.
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:
- Required number of members
Massachusetts LLCs must have at least one member or manager listed in their incorporation documents.
- Age restrictions
LLC members in Massachusetts must be at least 18 years of age.
- Residence restrictions
There are no residence restrictions imposed on LLC members in Massachusetts.
- What information needs to be included in the Articles of Organization?
LLC Members in Massachusetts are required to list their name and address in their Articles of Organization.
Requirements for the Articles of Organization
The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Massachusetts:
Registered agent information
All Massachusetts LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
If your business is a professional practice
Professional service companies are permitted to form under the professional limited liability company (PLLC) structure.
Massachusetts LLC taxation and fee requirements
There are several tax and fee requirements that must be addressed by LLCs in Massachusetts. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in Massachusetts, it is advised that you visit the state’s official business related website.
Annual report requirements
LLCs in Massachusetts are required to file an annual report every year by the company’s incorporation anniversary date. The cost of this filing is currently $500. Learn more about annual reports.
Tax identification numbers
Massachusetts requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Massachusetts does not require LLCs to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in Massachusetts vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
Need a Massachusetts corporation instead? Click here.