How to Start an LLC in Massachusetts
To start an LLC in Massachusetts you need to pick a business name, select a registered agent, and file your Certificate of Organization. Once those steps are complete, you’ll need to get a few more things in order, like create an operating agreement and file your BOI Report. We go over all the details here.
Step 1: Name Your Massachusetts LLC
Before filing the Certificate of Organization that forms your Massachusetts LLC, you’ll need to select a business name. To do so, take Massachusetts’s LLC naming rules into account:
- The name must include “Limited Liability Company,” Limited Company,” “L.L.C.,” “L.C.,” “LLC,” or “LC.”
- The name must not be identical or overly similar to the name of other businesses registered in Massachusetts. Check the name’s availability to discover whether it’s in use.
If you end up using a business name that’s different from the one you initially register with, you’ll need to get a business certificate. (Outside of MA, this is generally known as a DBA or trade name.) You’ll apply for it in the specific city/town where your business operates.
How to use your Massachusetts LLC name as a branding tool
When you select a Massachusetts business name, you’re also deciding on your most prominent piece of branding. If you plan to have an online business presence, your LLC’s name may also serve as the basis for your domain (the address for your website). Because of this, it’s important to make sure your desired domain name is available early on. You’ll also want to browse social media platforms to find out if handles that match your business name are in use.
While nobody requires you to use consistent naming conventions across mediums, it’s a good idea to do so. Customers are less likely to find you if they have to remember multiple names for your company.
When you hire Registered Agents Inc to form your Massachusetts LLC, we can register your domain name, set up your business website and professional email, and more. We want your online brand to start out strong.
Step 2: Choose a Massachusetts Resident Agent
All Massachusetts LLCs need to appoint and maintain a resident agent for service of process. The purpose of a Massachusetts resident agent is to receive legal mail on behalf of the businesses it serves and to forward that mail to those businesses.
Massachusetts resident agents (called registered agents in most other states) can be either:
- An individual resident of Massachusetts
- An entity registered to do business in Massachusetts
Whether an individual or an entity, Massachusetts resident agents must have a physical address in the state where they’re present to accept service of process. When you hire Registered Agents Inc to form your Massachusetts LLC, we’ll be your Massachusetts registered agent, too.
Can I be my own registered agent for my LLC in Massachusetts?
Yes. As long as you are a Massachusetts resident with a physical address in the commonwealth, you can be your own registered agent.
Step 3: File Massachusetts Certificate of Organization
To register your LLC with the Massachusetts Secretary of the Commonwealth, you’ll submit a Certificate of Organization. You can file a paper Certificate in person or by mail, or you can file the document online. Here’s all the information you’ll need to gather in order to file:
1
EIN (optional)
If you have an EIN number already, include it. If not, you can skip this.
2
Business name
Enter your limited liability company’s name, remembering to include the “LLC” (or similar) identifier.
3
Address where records are kept
This may or may not be your business address, but it does need to be a Massachusetts street address.
4
General business character
Provide brief, broad information about your business activity.
5
Dissolution date (optional)
Most business owners don’t plan a specific end date for their LLC, but you can include one here.
6
Resident agent
Include your resident agent’s name and Massachusetts street address.
7
Resident agent’s consent
Your resident agent needs to sign your Certificate to confirm their consent to the appointment. If filing a paper document, you can include a signed attachment.
8
Managers
Include the names and business addresses of your LLC’s manager(s), if any.
9
Authorized executors
Include the names and business addresses of non-managers who have authority to sign official LLC documents. You need to list at least one person here if you did not list any managers.
10
Authorized real estate executors
Include the names and business addresses of those with authority to handle real estate matters, if any.
11
Additional matters (optional)
You can add more information about your LLC here, but most skip this step.
12
Effective date
If you want your Massachusetts LLC to be registered on a date other than the processing date, put that here. It cannot be more than 90 days out.
13
Filer’s contact info
Name, mailing address, and email of the person submitting the document.
14
Signature
The person preparing and authorized to submit this LLC application (the filer) needs to sign the Certificate.
How much does it cost to open an LLC in Massachusetts?
The cost to open a Massachusetts LLC depends on how you file your Certificate of Organization. If you file by mail or in person, it costs $500. If you file online, it costs $520.
How long does it take for an LLC to be approved in Massachusetts?
Massachusetts will process your LLC formation documents in about 1 day if you file online. File by mail and expect it to take a week or more.
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Step 4: Set Up Business Operations
After your Massachusetts LLC is created, it’s time to get your business’s operations in order. To do so, you’ll need to be on top of the following elements:
Create an operating agreement.
Your operating agreement is a rule book for your Massachusetts LLC. Though not required by state law, having one ensures that all of the LLC’s members/managers understand expectations and standards. Your operating agreement will detail things like how ownership is divided, when meetings will be held, and what happens when a member leaves.
Get an EIN.
An EIN is a number, issued by the IRS, that identifies your business. Since Massachusetts has a place for your EIN in the Certificate of Organization, you might decide to get one ahead of registration. But if you don’t have an EIN at this point, it’s a good idea to apply for one. You’ll likely need an EIN ahead of hiring employees or opening a business bank account.
Get a business bank account.
Mixing personal and business finances can hurt the limited liability benefits that come with having an LLC. To avoid this, you’ll want to set up a business bank account early on. To fund the account, each LLC member will typically provide an amount equal to their ownership percentage.
Step 5: File BOI Report
The Beneficial Ownership Information (BOI) Report is a federal filing submitted to FinCEN. It’s a report that most LLCs need to file, as set forth in the Consumer Transparency Act (CTA). In the BOI Report, you’ll include information about your company and its owners.
Though free to file, penalties for failing to file a BOI Report can be steep: you may owe up to $591 per late day. Because of that, you’ll want to pay attention to the filing deadline, which varies based on your Massachusetts LLC’s registration date:
- If you form your LLC in 2024: you have 90 days to file post-registration.
- If you form your LLC in 2025: you have 30 days to file post-registration.
When you hire Registered Agents Inc to create your LLC in Massachusetts, add BOI Report Filing service so that we can worry about these deadlines instead of you.
Frequently Asked Questions
What is required to form an LLC in Massachusetts?
To form an LLC in Massachusetts, you’ll need to do three things: choose a business name, designate a registered agent, and file your Certificate of Organization (along with filing fee) to the Secretary of the Commonwealth.
How much does it cost to maintain an LLC in Massachusetts?
It costs $500 to file your Massachusetts LLC annual report by mail and $520 to file it online.
Do LLCs pay taxes in Massachusetts?
In Massachusetts, LLCs are taxed as pass-through entities by default. This means profits pass to members who pay taxes on them via their individual tax returns. To stay compliant, you’ll need to create an account with MassTaxConnect.
How do I contact the Massachusetts Secretary of State?
If you have questions about state filings or business in general, here’s how you can contact the Massachusetts Secretary of State:
Phone: 617-727-9640
Fax: 617-742-4538
Email: [email protected]
Physical & Mailing address:
Secretary of the Commonwealth
One Ashburton Place, 17th Floor
Boston, MA 02108