We’ve put together a free step-by-step guide on how to set up an LLC in Massachusetts. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Massachusetts LLC right now!
A few points to remember before setting up your LLC in Massachusetts
When you set up an LLC in Massachusetts you’ll need a few things before you get started. This section will help you get your checklist in order.
A Unique Business Name
Every business in the state must be unique. You’ll need to search for a Massachusetts LLC name. Go to Commonwealth of Massachusetts: Search for Business Entity to make sure yours is not taken.
An LLC Designator
You must have an LLC designator in your name in one of the following formats.
- LLC (most common)
- L.L.C.
- Limited Liability Company
Now that you have your unique business name, it’s time to register it with the state of Massachusetts. Let’s get down to business.
A Registered Agent
In most states, a registered agent is a person or a company that accepts “Service of Process” for your Massachusetts LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Massachusetts Department of Revenue.
If you’re opening a business in Massachusetts but you aren’t a resident, you’ll need to get a registered agent in that state. The requirements for a registered agent are as follows:
An Individual:
- Must be 18 and be a resident of the state
- Must be authorized to do business in the state.
- Must have a physical street address located in Massachusetts
A Company
- Must be authorized to do business in the state
If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent.
You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state.
Hot Tip
The nice part of using a company is that their address is used instead of yours. As the business address will be public knowledge. By using a registered agent, you can protect and secure your own address.
Step 1: Register Your Business Name
To Set up an LLC in Massachusetts you need to reserve your business name. This way during the process no one can steal the name of your company.
There is no online reservation so you’ll need to apply by mail. Get this name reservation form and/or go to the Commonwealth of Massachusetts: About Name Reservations to download and fill it out.
The reservation is only for up to 60 days and the filing fee is $30. If you wish to extend it for another 60 days, pay an additional $30.
Step 2: File Your Certificate of Organization in Massachusetts
Setting up an LLC in Massachusetts is easy, especially for single-member LLCs. Just go to the Commonwealth of Massachusetts: LLC Information. Or go directly to the Certificate of Organization.
You can just directly file the Certificate of Organization even without a reservation. Easy peasy.
If you don’t want to file online, you can download from the Commonwealth of Massachusetts: LLC Information and fill out the LLC Certificate of Organization or Professional LLC Certificate of Organization.
Fees: In Massachusetts, the cost of setting up your LLC and filing the Certificate of Organization is $520.00 online and $500 by mail. Processing and approval for both take 24 to 36 hours.
Step 3: Complete Your Maryland LLC Operating Agreement
An operating agreement is a key document used by LLCs, and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements.
Hot Tip
You are not required to file an Operating Agreement with your state. But it may be vital to have it, especially if there are multiple members of your LLC.
Step 4: Get Your Federal Tax ID Number (EIN)
Once your Massachusetts LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.
Your EIN is the social security number of your business. Keep it well protected. You’ll use this number to open bank accounts, file tax documents, apply for loans and many other uses. It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received etc.
To apply for your EIN you can go to IRS EIN/Tax ID Application. Make sure you pick the correct Business Entity Type.
Quick Note
You can only file online if you have a Social Security Number (SSN) or Taxpayer ID (ITIN). Otherwise, you’ll have to mail in the forms and wait for the response. If you don’t have an SSN, on Form SS-4, where it asks for your SSN, ITIN, or EIN (line 7b), write “Foreign”. Your EIN application will then be approved without the need for having an SSN.
Step 5: File and Pay Your LLC Annual Report
Massachusetts LLC is required to file and pay an annual report to keep your LLC in compliance and in good standing.
To file online go to Corporations Online Filing System or download and fill out Form D – LLC Annual Report and sent it by mail.
The annual report fees are $520 online and $500 by mail. It takes 24 to 36 hours to process your filing.
Taxes, Permits, and Licensing in Massachusetts
To do business in Massachusetts you will need to file tax returns, and hold permits and licenses in your county or city.
Massachusetts LLC is required to file and pay an annual report to keep your LLC in compliance and in good standing.
To file online go to Corporations Online Filing System or download and fill out Form D – LLC Annual Report and sent it by mail.
The annual report fees are $520 online and $500 by mail. It takes 24 to 36 hours to process your filing.
Aside from business licenses and permits, all LLCs must also pay appropriate taxes and meet obligations with the Massachusetts Department of Revenue.
Never miss a deadline
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Putting it All Together
Now that you can set up an LLC in Massachusetts online it shouldn’t take more than a day or two to get up and running. The Massachusetts Secretary of Commonwealth’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.
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