Massachusetts LLC Cost 2023: What Are The Fees to Start a Massachusetts LLC?
How much will it cost me to start an LLC in Massachusetts? That’s a question that probably every new entrepreneur asks themselves when planning to incorporate in MA. In 2023, the fees associated with forming and maintaining an LLC in Massachusetts will vary. The fee for filing Articles of Organization ranges from $520 to $1000 depending on the business’ intention, while registering a business bank account comes with its own set of fees as well. It is also important for business owners to create an LLC operating agreement that outlines members’ rights and responsibilities, giving them further peace of mind that their business is legally compliant. All these Massachusetts LLC Cost taken into consideration make it possible for business owners to launch and manage their venture without any issue.
- Get Professional Help When Forming an MA LLC (from $0 + state fees)
- Everything You Need to Know About Massachusetts LLC Fees in 2023
- Quick Costs for Massachusetts LLC Breakdown & Best Options
- How Much Does an LLC Cost in Massachusetts?
- Five Basic Steps to Start an LLC in Massachusetts
- How Much Does It Cost to Maintain an LLC in Massachusetts?
- Get Professional Help in Forming an LLC in Massachusetts
- Massachusetts LLC Cost FAQ
Everything You Need to Know About Massachusetts LLC Fees in 2023
Starting a business is an exciting time, but it can also be overwhelming. There are many decisions to make and paperwork to fill out, including the fees associated with setting up a limited liability company (LLC) in Massachusetts. In this quick guide, we will review everything you need to know about LLC fees in the Bay State for 2023.
Quick Costs for Massachusetts LLC Breakdown & Best Options
|Who forms the LLC?||Total fees|
|You form the LLC in Massachusetts yourself||$500 + ($500 Annual Statement + ~$30 LLC Name + $25 Certificate of Good Standing) = ~$555|
|by using ZenBusiness||$0 + state fees|
|by using Northwest Registered Agent||$39 + state fees|
|see our other top-rated LLC service providers||varies|
How Much Does an LLC Cost in Massachusetts?
Massachusetts LLC Online Filing Fee: $500
Establishing an LLC in Massachusetts can be a time-consuming process, but it does not have to be overly expensive. Massachusetts LLC Filing Fee typically costs less than $500 between state fee and filing costs, however, it is important to ensure you are aware of all the different fees associated with forming an LLC in the state. The specific amount will depend on the type of business structure you form as well as any services that you wish to hire such as legal or tax support.
Additionally, Massachusetts LLCs are required to pay a minimum tax every year; knowing this upfront can help with your budget planning for how much your company will cost in the long term.
Massachusetts Annual Report Fee: $500
For business owners operating in Massachusetts, filing an annual report is now quicker and simpler than ever thanks to the state’s new Modernized Business Solutions fee schedule. Now, businesses are only required to pay a convenient flat fee of $500 each year in order to submit their report. This more efficient approach ensures that small business owners have the tools necessary to stay compliant with the state regulations without any extra hassle.
Additionally, paying for the annual report has never been easier with electronic payment processing options available directly through the state’s website. It’s no wonder that many local small business owners are turning to Massachusetts’s Modernized Business Solutions for all of their compliance needs.
Registered Agent Fees
Basically, it will cost you $0 if you decide to be your own Registered Agent.
But we really recommend outsourcing this task to professionals as it’s truly worth it.
Establishing a Massachusetts LLC just got easier with the help of the various LLC formation services. They provide all the paperwork, advice, and resources needed to launch a successful business venture. As part of their service, they offer a Registered Agent service to ensure businesses stay compliant with state laws.
For that we recommend incorporating with Northwest Registered Agent — and you’ll get an LLC + Registered Agent service for just $39/year + state fees.
A resident agent is responsible for accepting legal or tax documents on behalf of a business and must be registered in Massachusetts. The fees for this service are minimal compared to the peace of mind it offers. With expert guidance and reasonable prices, the Massachusetts LLC Formation Service helps make starting up a business in 2023 as stress-free as possible.
|Massachusetts||Domestic LLC||Foreign LLC|
|Online Filing||$500||Not Available|
|Annual Report filing||$500||$500|
|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.
Business Permits and Licenses Costs
No matter what kind of business you decide to create in Massachusetts, whether it’s an LLC or something else – if your industry and geographic location require it – then federal, state, and local permits/licenses are a must for legally operating.
You might have to spend between $50 to $350 on professional licenses in MA.
Massachusetts State Income Tax
The State requires you to pay a flat rate of 5% on your total income, no matter the amount. This tax is known as the State Tax and must be paid before any other taxes are due. By paying this tax in full, you guarantee that all necessary forms meet compliance with state regulations.
Massachusetts Sales tax
The usual rate of sales tax is 6.25%, although the taxes could be different depending on your county or city.
Massachusetts Federal Self-Employment Tax
Massachusetts LLC members who remove income from the business must pay self-employment taxes, which are levied at a rate of 15.3%.
Massachusetts Payroll Tax Withholding
Companies located in Massachusetts have a responsibility to withhold payroll tax from their employee salaries, which is set at 7.65%. This percentage applies to all taxable wages received by the employees.
Cost Comparison Table
To get a better idea of the expenses associated with establishing an LLC in states other than Massachusetts, take a look at the below chart. Each state requires distinct fees to make your filing official with their State Authorities.
|Name of State||Fee (filing)||Annual Cost||Tax on Sales|
|New Hampshire LLC||$100||$100||0%|
Other LLC Filing Costs
There are optional fees associated with LLC formation:
LLC Name Reservation:
Give yourself ample time to form your LLC by reserving your name up to two months in advance with an Application of Reservation and a $30 filing fee. If additional days are necessary, you may extend the reservation for another 60 days at just $30 more.
“Doing Business As” (DBA) Name:
Filing for a business certificate, or DBA, must be done in the city (or cities) where your company operates. The fee to file is different depending on your city but usually is between $30 and $65.
Certified Document Copies:
Certified copies of your Massachusetts business documents can be conveniently ordered through the Secretary of the Commonwealth at just $7, plus an additional $2 per page.
Certificate of Good Standing:
If you need to obtain your Massachusetts certificate of good standing, it’s easy and affordable. Simply order through the Secretary of the Commonwealth for a small $25 fee, and that’s all there is to it! Banks and lending institutions often request this type of document as evidence that you are up-to-date with state requirements.
Five Basic Steps to Start an LLC in Massachusetts
To know everything on how you can start an LLC in Massachusetts yourself — check out our guide here.
And to get an idea of how to start an LLC in any state – read our guide here.
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.
Creating a limited liability company can be a great way for entrepreneurs to protect their assets and expand their businesses. But the start-up costs don’t end there. Every state has different requirements for maintaining an LLC, with Massachusetts requiring annual filings that can become expensive.
Depending on one’s exact filing needs, the costs associated with maintaining an LLC in Massachusetts are generally around $850 during the first year, plus any filing fees. These costs include attorney fees and formation services.
That number goes up to $450 per year afterward, as most of those extra services won’t be required anymore when renewing the LLC. To simplify the process, many entrepreneurs seek assistance from fee-based corporations such as Inc File which provide comprehensive coverage at cost-friendly prices.
Get Professional Help in Forming an LLC in Massachusetts
It can be difficult and time-consuming to form a Massachusetts LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!
#1 – Create an LLC in Massachusetts Using Northwest Registered Agent
Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read our full & extensive Northwest review here.
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
#2 – ZenBusiness can help you form an LLC in Massachusetts
ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our full ZenBusiness review here.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
Massachusetts LLC Cost FAQ
Do you have to pay for a Massachusetts LLC every year?
Each year, Massachusetts LLCs are mandated to pay a $500 annual report fee. To find out more about this requirement, check out our comprehensive guide on the Massachusetts LLC annual report today!
Is an LLC really necessary?
If you have a small business with any level of risk or liability, we strongly suggest that you form an LLC. This type of organization provides limited liability protection for your personal assets in the event of financial loss due to unpaid debt or lawsuits.
What is the cheapest way to get an LLC?
Forming an LLC doesn’t have to be expensive. You can reduce costs by completing the formation process yourself and creating your own operating agreement, acting as your own Agent for Service of Process, and acquiring your own EIN.
But ultimately, we recommend using Northwest Registered Agent for just $39 + state fees. This saves you time and headache,
Can I pay myself a salary from my LLC?
Although you are able to provide yourself a salary from your LLC, it is more accurately referred to as a “draw” or “distribution,” depending on how the IRS taxes your entity.
Is an S corp better than an LLC?
Are you debating if an S corporation (S corp) is the ideal tax status for your business rather than LLC? Consider this: an LLC can be taxed as either default or S corp. In some cases, opting to become an S corp will make financial sense for businesses and provide greater advantages.
What’s better: sole proprietorship or LLC?
A sole proprietorship is only good for businesses that carry a very low risk of liability because sole proprietorships don’t offer any liability protection. Here’s our explanation of the differences between Sole Proprietorships and single-member LLCs.
Can I start LLC for free?
Although creating an LLC is possible without professional assistance, associated costs related to the forms remain no matter where your business is established.
Does LLC need a bank account?
To ensure that you are able to differentiate between your business and personal funds, it is essential for any LLC to establish a separate business bank account.
Is LLC expensive?
Deciding whether creating an LLC is expensive or not can be a difficult question to answer; the cost range could span anywhere from $40 all the way up to $500 depending on if you prefer to hire professionals. Even if you don’t enlist third-party help, there are still fees associated with filing forms that must be covered.
Starting a business can be exciting yet daunting—especially when it comes time to deal with all the paperwork and fees associated with setting up an LLC in Massachusetts! Thankfully we have outlined everything above which will help make this process smoother and easier for entrepreneurs planning on launching their new business in 2023.
To sum up, starting a Massachusetts LLC shouldn’t be as expensive as it seems.
The total cost shouldn’t exceed:
- $0 + state fees if you’re forming a basic LLC with all the basic options with ZenBusiness (only via our link).
- $39 + state fees if you’re forming an ‘all-inclusive’ LLC with Northwest (only via our link).
- ~$555+ if you’re forming an LLC yourself.
We hope this overview has been helpful in understanding all there is to know about Massachusetts LLC fees! Good luck!