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LLC Massachusetts Experts and 5 Steps to Your MA LLC

You’ve made the decision — you’re starting an LLC in Massachusetts. You’re excited about the new venture’s possibilities, but at the same time, you are nervous about where to start.

You may have many questions about what it takes to start an LLC in Massachusetts. This guide to starting an LLC in the Bay State will give you the basics so that you can go forth with confidence, armed with the essential information you require to navigate the system and get established the right way.

To get your Massachusetts limited liability company (LLC) up and running, you must know what documents need to be filed where, if an operating agreement is required, and how to handle taxes and business licenses. Follow this step-by-step guide showing you how to get an LLC in MA. You will be on your way to becoming an official owner of a Massachusetts LLC.

Start a Massachusetts LLC Now

Forming a Massachusetts Limited Liability Company

Your new business idea has probably already taken hours of research and planning. Before you begin doing business, you need to take care of all the paperwork to ensure your business is compliant in Massachusetts. 

Don’t you wish there was a “create LLC Massachusetts” button you could push? We have your back. Our simple guide shows where to start to get your Massachusetts limited liability company (LLC) up and running — nearly at the click of a button.

LLC Massachusetts Formation Process

In this guide, we’ve outlined five steps and simplified the details. We’ve also shown how the right LLC service can make the process easy and quick, allowing you to focus on opening and growing your business.

Starting an LLC Massachusetts can feel overwhelming. What are the steps your business needs to take to operate? If you are setting up an LLC, there are some specific steps to take in Massachusetts to ensure your business and partners are protected. Our guide will help you understand how to create an LLC in MA, with each step of the journey and show you how our services can make the LLC formation process easier.

An infographic that explains how to form an LLC in 5 Steps
Step 1: Name Massachusetts LLC

Step 1: Name your Massachusetts LLC

Before you register your LLC in Massachusetts, you need to have a company name for it. Choose one that is unique, tells people who you are and what you do or offer, and resonates with your target market. You must be sure that your name isn’t taken by another company in the commonwealth. It must also be distinguishable and distinct. Slight variations in spelling, punctuation, and suffix will not suffice. Make sure not to include any offensive language or words that are derogatory in nature to adhere to commonwealth laws.

Make a list of possible names and then follow the instructions on our Massachusetts Business Entity Search page to see if your desired name is available in the commonwealth. To garner more results (and ensure the name isn’t too close to another business), enter the key portions of the name when conducting a search. The more detailed your query, the fewer results you’ll receive.

Massachusetts LLC Name Requirements

Once you’ve found an available name, decide on an LLC designator to place at the end of your company name. For instance, if your company name is “Modern Movers,” you could add “LLC” to the end to form “Modern Movers, LLC.”

A list of available LLC designators include:

That means you could go with other options, like “Modern Movers L.C.” or “Modern Movers Limited Company” — the official company name just has to have the LLC designator at the end.

Reserve a Business Name for a Massachusetts LLC

Once you’ve conducted your Massachusetts business lookup and found an available name, you’ll need to determine if you’re ready to file right away or if reserving the name is in your best interest. Massachusetts allows you to reserve a business name for 60 days for a fee. If you’d rather not deal with this process yourself, we have a business name reservation service that can handle it for you. As part of the service, we also check to see if your desired name is available.

Secure a Domain Name for your Business

If you choose to create a website for your company, then you’ll want to register a domain. Typically, businesses choose a domain name close to their actual company name. To find out what domains are available, do a quick domain search until you find one you’d like to use. When you’re ready to register, reach out to a partner like us to help.

Visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out more, go to the Massachusetts Secretary of the Commonwealth website page for trademarks.

File a DBA in Massachusetts

Lastly, if you prefer to use a different business name, you can file a Massachusetts DBA (“doing business as”) Certificate. Massachusetts DBA names are filed with the city or town clerk’s office where your company will be doing business.

Step 2: Massachusetts Registered Agent

Step 2: Appoint a Massachusetts resident agent

Another important step in the LLC formation process is to appoint a resident agent. A resident agent in Massachusetts is a person or entity acting as the point of contact for all service of legal documents. If your company is subpoenaed or sued, Massachusetts will deliver all necessary documents to your Massachusetts resident agent

As the owner, you can act as your company’s resident agent. While that may seem like the easiest and most logical option, it’s not always in your best interest. After all, being served in front of customers can tank your company’s reputation. 

Hire an Outside Registered Agent Service

You may benefit from hiring an outside registered agent service. Be sure to choose one that meets all requirements (Massachusetts residency, authorization to do business in Massachusetts, and a permanent address in the commonwealth).

A couple of benefits of using an outside registered agent service like ours include:

Step 3: Massachusetts Certificate Formation

Step 3: File Massachusetts Certificate of Organization

The next step is to to complete your Certificate of Organization and file it with the Massachusetts Secretary of the Commonwealth. Or, better still, you could have us do it for you. Filing official government documents like this can be intimidating, which is why we’re here. With our business formation plans, we handle your filing to make sure it’s done quickly and correctly the first time.

But, although we can handle this for you, we’ll show you how the process works below.

Massachusetts Certificate of Organization Requirements

To accurately fill out this form, you’ll need the following:

Mail or Submit LLC Paperwork Online

You can fill out the document and mail it in or use the online portal to submit your paperwork. You’ll be responsible for paying a substantial nonrefundable filing fee if you file by mail and slightly more if you file online.

If you have us handle filing your Articles of Organization, once the commonwealth approves your LLC, your paperwork will be available from your ZenBusiness dashboard. Here you can keep it and other important paperwork digitally organized. 

Digitally store your Massachusetts LLC paperwork

Once you get your physical paperwork back approving your new LLC, you’ll want to keep it in a safe location along with your other important documents. These should include your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Step 4: Massachusetts Operating Agreement

Step 4: Create an operating agreement

Every company has rules to follow, processes in place, and plans for the future. LLC operating agreements outline all of this and more. However, not every state requires LLCs to have one, including Massachusetts.

If you’re a single-member LLC, you may feel drafting an operating agreement is pointless, especially since there’s not a requirement in Massachusetts. But even as a single-member LLC, your company can benefit from having an operating agreement for Massachusetts. This document outlines how to run your company, how to handle finances, and how to make decisions. It also details what happens to your company if you leave or become unable to lead. An LLC operating agreement can also help protect you and your assets in the event of dissolution or bankruptcy.

Our interactive operating agreement template can help you if you’re unsure how to create an LLC operating agreement.

Step 5: Massachusetts EIN

Step 5: Apply for an EIN

The last step is registering with the Internal Revenue Service (IRS). To register with the IRS, you’ll apply for an Employer Identification Number or EIN. Your EIN, also known as a Tax ID Number, is essentially your company’s Social Security number. It helps identify your business and allows you to open financial accounts, hire employees, and pay taxes.

While LLCs with multiple members or employees will be required to apply for an EIN, sole-member LLCs without employees might wonder if this step is necessary. However, obtaining an EIN can provide an additional layer of protection from identity theft, as you won’t have to use your Social Security number for business purposes.

You can get your Massachusetts LLC’s EIN through the Internal Revenue Service website, by mail, or by fax. If you’d rather leave dealing with that particular government agency to someone else, we can get it for you. Our Tax ID Number service is quick and eliminates the hassle.

Open a Business Bank Account for your LLC in Massachusetts

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult. It could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities (i.e., they want to sue you for not just your business assets, but also your personal assets).

We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place. 

Massachusetts LLC FAQs

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

    Starting an LLC in Massachusetts can be costly, as the filing fee is among the highest in the nation. The fees for forming an LLC in Massachusetts can range from $500 to $550, depending on factors such as your method of filing and whether you choose to reserve your business name. Note that fees change over time, so you should check the Massachusetts Secretary of the Commonwealth website for the most recent filing fee schedule.

    Keep in mind this does not include ongoing costs. Each year, for instance, you’ll be required to file a Massachusetts annual report with the Secretary of the Commonwealth that carries a large fee equivalent to the original LLC filing fee.

    We can help you with your annual report in a couple of ways. Our annual report service will help you file your report, and our Worry Free Compliance service not only helps with filing your annual report, but also sends you other important compliance reminders and helps you with two amendment filings each year.

  • What are the benefits of an LLC in Massachusetts?

    LLCs are often the business type many small businesses or new business owners choose. That’s because LLCs combine many of the benefits of a corporation with those of a sole proprietorship or partnership. They’re particularly great for owners looking for flexible management options and liability protection.

    Here are a few benefits to keep in mind when forming an LLC in Massachusetts:

    • The separation between personal and business finances: When forming an LLC, it’s easy to separate your personal and business finances, debts, and liabilities, helping protect your personal assets from the business’s liability.
    • Protection from double taxation: When you’re taxed as a corporation, you’ll pay taxes on your company’s profits and the profits you earn as an individual from the company. However, with an LLC, you’ll only be required to pay personal taxes on your individual company profits if you elect to be taxed the default way, which is as a sole proprietorship or partnership. You’ll also avoid the Massachusetts excise tax if you opt to be taxed this way.
    • Customized management structure: There are no set requirements for managing an LLC in Massachusetts, allowing you to create a management style and organizational business structure that makes sense for your LLC.
    • Fewer reporting requirements: While corporations can have lengthy reporting requirements, LLCs have very few.

    For a more in-depth look at why an LLC might be a better option for you, see our breakdown of what an LLC is and how it compares to a corporation.

  • How is an LLC taxed in Massachusetts?

    While the basic tax setup is not complicated, you might want to team up with an accountant if you don’t understand the tax forms or want a second set of eyes reviewing your tax paperwork. This can prevent potential tax issues that could cause trouble for your LLC.

    Here are the basic tax laws for LLCs:

    • As an LLC owner, you’ll be responsible for paying into Social Security and Medicare through a “self-employment tax” directly on your tax returns.
    • You may have very high earnings and feel it’s more advantageous to be taxed as a C or S corporation. If you choose to be taxed as one of these designations instead of a partnership or sole proprietorship, you’ll need to file specific tax forms: the 8832 tax form for C corporations and the Form 2553 for S corporations. You’ll also have to pay Massachusetts’s corporate excise tax.
    • LLCs need to pay quarterly estimated tax payments each year to avoid tax penalties. You’ll need to make these payments each quarter for both federal and state taxes. If your LLC has employees, you’ll also need to withhold federal, state, Social Security, and Medicare taxes from their paychecks. These withholdings need to be submitted to the IRS. You’ll need to set up a wage withholding account via the MassTaxConnect government site. As an employer, you’ll also need to pay Massachusetts unemployment insurance (UI) tax.
    • If your LLC sells items or services and collects sales tax, then you’ll also need to apply for a Massachusetts sales tax license online via the Massachusetts government website.

    Those who purchase any of our plans get a free accounting consultation and tax assessment from our specialists to receive helpful resources and no-obligation recommendations around your bookkeeping, accounting, and tax needs. Read our small business taxes page for more information.

  • What is the processing time to form my Massachusetts LLC?

    In about four hours after payment, your Certificate of Organization will be processed with the Massachusetts Secretary of the Commonwealth if you file online. Filing by mail takes a bit longer — between four to five business days.

  • Do I need to file my operating agreement with the Commonwealth of Massachusetts?

    The operating agreement is kept internally by the members of the Massachusetts LLC. While some states legally require an LLC operating agreement, Massachusetts does not.

  • What tax structure should I choose for my Massachusetts LLC?

    Many LLC owners opt to be taxed the default way — as a sole proprietorship (for single members) or a partnership (for multiple members) — particularly to avoid the Massachusetts excise tax. Choosing to be taxed the default way ensures you’ll only be taxed on profits that you claim on your personal tax return. You can also choose to be taxed as a corporation, which some large companies opt to do. In addition to having to pay the Massachusetts excise tax, you’ll also want to understand the other distinctions that are unique to the corporation tax structure. Consult a tax professional for guidance.

  • Does Massachusetts allow a Series LLC?

    No, you’re not legally allowed to create a Massachusetts Series LLC. A Series LLC refers to an LLC structure where one LLC operates as a parent company over multiple children LLCs. Most states do not allow Series LLCs.

  • Which licenses and insurance are required for an LLC in Massachusetts?

    Some LLCs need to have a business license to operate, so it’s important to secure them as soon as possible. The commonwealth doesn’t require a general business license, but cities and counties sometimes require one as well as additional licenses and permits, so check with your local government offices.

    Licensing happens at the federal, state, and local level and is often industry-specific, so you’ll need to research which licenses and permits your LLC needs. If you don’t have the time or inclination to do all this research yourself, or if you just want the peace of mind to know that your business has all the licenses and permits it’s legally required to have, our business license report service can do the work for you.

    Your LLC might also need to secure insurance policies, depending on your industry and whether you have employees. The types of required insurance can range from professional liability insurance (typically required of consulting and legal firms) to unemployment and workers’ compensation insurance. You can find out more about LLC’s minimum insurance requirements on the Massachusetts government site.

  • Can I make changes to my Massachusetts LLC?

    Yes. You can update your LLC name, change your resident agent, or make additional changes online via Massachusetts’s website. Each change has its own form and associated filing fee, which can be filed and paid through the online filing system.

  • How do I dissolve my LLC in Massachusetts?

    Dissolving your LLC requires you to file a Certificate of Cancellation with the Commonwealth of Massachusetts. You can file your cancellation via the Massachusetts online filing system.

    For more information, visit our Massachusetts business dissolution guide.

  • What's the difference between a Massachusetts LLC and S Corp?

    An LLC is a business entity, while S Corp is a tax filing. Learn more about the differences and compare Massachusetts LLCs vs. S Corps.

Massachusetts Business Resources

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