LLC Cost in Massachusetts – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Perhaps you are hoping to form a Massachusetts LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Massachusetts.

Massachusetts LLC Cost of Filing

Here are the costs involved in forming an LLC in Massachusetts.

Cost of Filing Formation Certificates

The Massachusetts Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Massachusetts Secretary of State.

Massachusetts Domestic LLC

  • Online Filing costs $500
  • Annual Report filing costs $500
  • Name Reservation costs $30
  • 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

Massachusetts Foreign LLC

  • Online filing: not available
  • Annual Report filing costs $500
  • Name Reservation costs $30
  • 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.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Massachusetts LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Massachusetts, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

  • Worry-free service

  • Great customer support

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Massachusetts Department of Revenue for regulatory boards or agencies requiring licensing.

Massachusetts LLC taxes to be Paid

The business LLCs in the State of Massachusetts are subject to different State tax filing obligations. Though the fees may vary from county to county.

Massachusetts State Income tax

This is the State Tax levied on any income you pay to yourself. The State has a standard tax rate of 5% levied on the total amount of taxable income.

Massachusetts Sales tax

The standard rate of sales tax applicable is at the rate of 6.25%. Though the taxes may vary depending on the county and city.

Massachusetts Federal Self-Employment Tax

Any profit that Massachusetts LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.

Massachusetts Payroll Tax Withholding

If you hire employees in Massachusetts, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.

Cost Comparison Among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Massachusetts, read the table below:

StateFiling FeeAnnual Fee/ Biennial FeeSales Tax
Massachusetts LLC$500$5006.25%
Connecticut LLC$120$806.35%
Rhode Island LLC$150$507.00%
New Hampshire LLC$100$1000%
Vermont LLC$125$356.00%

Massachusetts is the wealthiest state in the US. Its economy is largely reliant on technological research and development, the service sector, and tourism.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

There are several expenses that business owners need to account for when it comes to maintaining an LLC in Massachusetts. One of the most significant costs is the annual report fee that every LLC must pay to the state. This fee is required in order to keep the LLC in good standing with the state and can vary depending on the size and type of the business. Additionally, there may be fees associated with obtaining the necessary licenses and permits to operate within the state.

Another important cost to consider is the cost of hiring a registered agent for your LLC. A registered agent is a person or entity that is designated to receive official legal and tax documents on behalf of the LLC. This can be an individual within the company or a third-party service, but regardless of who is chosen, there will be a fee associated with this service.

In addition to these ongoing costs, there may also be occasional costs that business owners need to be prepared for. For example, if there are any changes to the business, such as adding or removing members, changing the business name, or moving the business location, there may be fees involved in updating the necessary paperwork with the state.

While the costs of maintaining an LLC in Massachusetts can add up, it is important for business owners to consider these expenses as part of the overall budget for their business. By taking into account these costs from the outset, business owners can avoid any unexpected financial burdens down the road and ensure that their LLC remains compliant with state regulations.

Despite the costs associated with maintaining an LLC, there are also many benefits to operating as an LLC in Massachusetts. One of the primary benefits is the limited liability protection that it offers to its members. This means that the personal assets of the members are typically protected from any business debts or liabilities, which can provide peace of mind and security to business owners.

Furthermore, operating as an LLC can also provide tax benefits to its members. In Massachusetts, LLCs are usually taxed as pass-through entities, meaning that any profits or losses from the business are passed through to the individual members and reported on their personal tax returns. This can result in lower tax rates for some members compared to other business structures.

In conclusion, while there are costs associated with maintaining an LLC in Massachusetts, the benefits far outweigh these expenses for many business owners. By carefully considering these costs and incorporating them into the overall budget for the business, business owners can ensure that their LLC remains in compliance with state regulations and continue to thrive and grow. So, while it may require some investment upfront, the long-term benefits of operating as an LLC in Massachusetts are well worth it for many business owners.

In Conclusion

The cost of Massachusetts is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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