Starting a Massachusetts LLC is straightforward. You file paperwork with the Massachusetts Secretary of the Commonwealth, pay the $500 filing fee, and wait for approval. No lawyer required.

This guide walks you through the entire process step-by-step, including costs, timelines, required forms, and common mistakes to avoid.

💡 Did You Know? Massachusetts has the highest LLC filing and annual report fees in the nation ($500 each).

⏱️ Time Investment: 1-2 hours to complete paperwork. 1-2 days (online) for state processing.

Step-by-Step Guide to Forming a Massachusetts LLC

Choose Your LLC Name

Your Massachusetts LLC name must:
- Include "Limited Liability Company," "LLC or L.L.C."
- Be distinguishable from existing Massachusetts businesses
- Not contain restricted words (bank, insurance, corporation) without approval
Check name availability: Massachusetts Secretary of the Commonwealth Business Search

⚠️ Common Mistake: Don't skip the name search. If your name is too similar to an existing business, your filing will be rejected and you'll lose the $500 fee.
Appoint a Registered Agent

Massachusetts requires every LLC to have a registered agent—a person or company authorized to receive legal documents on behalf of your business.

Requirements:
- Must have a physical Massachusetts address (no P.O. boxes)
- Must be available during normal business hours
- Can be yourself, a partner, or a professional service
Cost: $0 if you act as your own agent. Professional services cost $100-300/year.
File Certificate of Organization

This is the official document that creates your LLC. You'll submit it to the Massachusetts Secretary of the Commonwealth.

Required information:
- LLC name
- Purpose of business (can be general)
- Registered agent name and address
- Management structure (member-managed or manager-managed)
- Principal office address
How to file:
- Online: Massachusetts Secretary of the Commonwealth Online Filing (fastest)
- Mail: Download and mail completed form (slower)
Filing Fee: $500 (non-refundable)
Visit Massachusetts Secretary of the Commonwealth
Create an Operating Agreement

While not always legally required, an Operating Agreement is highly recommended. It defines ownership percentages, profit distribution, management structure, and procedures for adding/removing members.

Why you need it:
- Protects your limited liability status
- Prevents disputes between members
- Required by most banks to open a business account
💡 Pro Tip: Even if you're a single-member LLC, create an Operating Agreement. It strengthens the legal separation between you and your business.
Get an EIN (Employer Identification Number)

An EIN is like a Social Security number for your business. You need it to open a bank account, hire employees, and file taxes.

How to get it: Apply free online at the IRS website. Takes 10 minutes, receive immediately.

Cost: $0 (free from the IRS)

⚠️ Scam Alert: Third-party services charge $50-200 for EIN applications. Don't pay. The IRS does this for free.
File Your Annual Report

Massachusetts requires LLCs to file an annual report with the Massachusetts Secretary of the Commonwealth.

Cost: $500/year

Due: Check with the Massachusetts Secretary of the Commonwealth for your specific due date, typically based on your formation date.

⚠️ Don't Miss It: Failing to file your annual report can lead to administrative dissolution of your LLC.

Complete Cost Breakdown

Item	Cost	When Due
Certificate of Organization	$500	At filing
EIN (Federal Tax ID)	$0	Anytime
Registered Agent (if using service)	$100-300	Annual
Annual Report	$500	Annually
TOTAL (First Year, DIY)	$500	—

Note: Optional costs like registered agent services ($100-300/year) and business licenses (varies by city/industry) are not included in the minimum total.

Timeline: How Long Does It Take?

Step	Time Required
Choose name and check availability	15 minutes
Complete Certificate of Organization	20-30 minutes
State processing	1-2 days (online)
Create Operating Agreement	1-2 hours
Get EIN from IRS	10 minutes (instant online)
TOTAL	1-2 days (online) (plus paperwork time)

Common Mistakes to Avoid

1. Skipping the Operating Agreement

Banks often won't open business accounts without one. Plus, it protects you in disputes and strengthens your liability protection.

2. Not Separating Personal and Business Finances

Open a dedicated business bank account immediately. Mixing personal and business funds can "pierce the corporate veil" and eliminate your liability protection.

3. Forgetting Ongoing Compliance

Massachusetts requires annual filings. Missing these deadlines can result in penalties or dissolution of your LLC.

4. Using Your Home Address as Registered Agent

Your registered agent address is public record. If you value privacy, consider using a professional registered agent service or a business address.

5. Paying Third-Party "EIN Services"

Scammers charge $50-200 to file for your EIN. The IRS does this for free at irs.gov. Never pay for an EIN.

Massachusetts LLC Tax Information

Massachusetts has a flat 5% state income tax. No separate franchise tax for LLCs.

Federal taxes: By default, LLCs are "pass-through" entities—profits pass through to your personal tax return. Single-member LLCs are taxed as sole proprietorships. Multi-member LLCs are taxed as partnerships. You can also elect S-corp or C-corp taxation if beneficial.

💡 Tax Tip: Consider consulting a CPA familiar with Massachusetts tax law. The right tax structure (default, S-corp, or C-corp election) can save you thousands annually.

Do You Need a Lawyer?

Short answer: No.

Forming a Massachusetts LLC is simple enough to do yourself. The forms are straightforward, and the Massachusetts Secretary of the Commonwealth website has instructions.

When you might want a lawyer:

Complex ownership structures (multiple members with different equity stakes)
High-risk industries (healthcare, finance, construction)
Significant startup capital or investor involvement
You want custom Operating Agreement provisions

Typical lawyer cost: $500-1,500 for LLC formation services.

Massachusetts LLC Checklist

Choose LLC name and verify availability
Appoint a registered agent with a physical Massachusetts address
File Certificate of Organization with $500 fee
Create an Operating Agreement
Apply for EIN with the IRS (free)
Open a business bank account
Set calendar reminder for annual report
Obtain any required business licenses for your city/industry
Set up accounting to separate business and personal finances

Frequently Asked Questions

Can I form a Massachusetts LLC if I don't live in Massachusetts?

Yes. You can form a Massachusetts LLC from any state or country. However, you'll need a registered agent with a physical Massachusetts address.

How much does it cost to start an LLC in Massachusetts?

The state filing fee is $500. Add $0 for your EIN (free from IRS). If you use a professional registered agent, add $100-300/year. Total minimum DIY cost: $500.

How long does it take to form an LLC in Massachusetts?

State processing typically takes 1-2 days (online). The paperwork itself takes 1-2 hours to complete.

What's the difference between member-managed and manager-managed?

Member-managed: All LLC owners (members) make day-to-day decisions. Most common for small businesses.

Manager-managed: Members appoint one or more managers to run the business. Used when some members are passive investors.

Do I need a business license in Massachusetts?

It depends on your city and industry. After forming your LLC, check with your local clerk's office for required permits or licenses. Professional services may need state-level licensing.

Can I convert my sole proprietorship to an LLC?

Yes. Form a new LLC and transfer your business assets. Update your licenses, permits, contracts, and bank accounts with your new LLC name.

How is a Massachusetts LLC taxed?

Massachusetts has a flat 5% state income tax. No separate franchise tax for LLCs. At the federal level, LLCs are pass-through entities by default. You can elect S-corp or C-corp taxation if it's more beneficial.

What happens if I don't maintain my LLC?

Failing to file your annual report or maintain a registered agent can lead to penalties, late fees, and eventually administrative dissolution of your LLC.

Why Choose Massachusetts for Your LLC?

✓ Massachusetts LLC Advantages:

Filing fee: $500
Processing time: 1-2 days (online)
Ongoing costs: $500/year

Other State LLC Guides

Comparing states? Check out our other popular LLC guides:

Additional Resources

🎉 Ready to Start? You now have everything you need to form your Massachusetts LLC. The process is straightforward—just follow the steps above and you'll be up and running in 1-2 days (online).

Last updated: February 27, 2026
Information verified with Massachusetts Secretary of the Commonwealth and IRS guidelines. Contact the Massachusetts Secretary of the Commonwealth at (617) 727-9640 for the most current information.