How to Start an LLC in Massachusetts

Before you get started, there’s a worthy consideration to take. For a small fee, you can use a professional LLC formation service, which will make the entire process much simpler and quicker. Companies like ZenBusiness and Northwest Registered Agent charge a small fee for this service (starting at $49), and the time they can save you is well worth the cost.

If you go this route, you will have access to modern tools, guides, and templates that help simplify the business formation process. You’ll also have accessory services available that are beneficial for your business. For instance, both ZenBusiness and Northwest Registered Agent offer “Registered Agent” services, which is a requirement (more on this below in step #3).

If you choose to file on your own, it will take a bit longer, but you will save some money. Follow the steps below if you plan to file on your own.

Recommended services

Visit ZenBusiness

The focus of ZenBusiness is on forming new companies. They help simplify the process of starting a business, using powerful online tools. ZenBusiness plans are ongoing and help customers grow their businesses. They provide many services and resources, and can also help connect entrepreneurs to other relevant services.

See the full ZenBusiness review here

Visit Northwest

Northwest Registered Agent will scan all documents you receive for your business so that you can easily see them in your online account. There, you’ll have unlimited cloud storage as well as strong business data protection, and help from their friendly customer service staff when you need it. A yearly subscription for their registered agent services costs $125.

See the full Northwest review here

Visit Bizee

Bizee specializes in new company formation. With Bizee, you can form a new LLC, corporation, or other business entity in your state. So far, they have helped form more than 500,000 new businesses. Bizee works directly with each US state to help start new businesses. Essentially, they are a middleman between you and your state’s business department.

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Selecting a name for your company is the first major step you will need to take. A name must be selected before filing any paperwork, as the LLC name is essential to the Certificate of Organization filing.

This step is important, for obvious reasons. You want to pick a name that suits your business and is memorable. It also must meet certain guidelines laid out by the state of Massachusetts.

The main requirement is that the name must be unique – and distinguishable from any other business name in MA. To confirm availability, you can conduct a MA business name search online.

In addition to the unique name requirement, MA has several other LLC naming requirements that must be met. The name must contain “LLC”, “L.L.C.” or “limited liability company”. It must not contain government-related words or phrases. And if it contains words from protected industries (banking, legal, medical, etc.) then special permission may be necessary.

Once you find the perfect name, you can move on to the next step. Names can also be reserved ahead of time, which is useful if you find a good name but are not yet ready to file for your LLC.

All Massachusetts LLCs must appoint a Registered Agent to represent their company. This agent is chiefly responsible for receiving important documents on behalf of the business. This can include tax documents, legal notices, and other important communications.

Any MA resident can be a Registered Agent – including yourself or an employee. Alternatively, a professional Registered Agent service can be used. ZenBusiness is a good option that’s also quite cost-effective. Northwest Registered Agent is also a great option, providing excellent customer service and one-on-one help.

The advantage of using a professional service is that they ensure everything is handled correctly and in a timely manner. Their offices are always open, so your business will never miss an important notice – even if you yourself are on vacation. Plus, they protect your privacy, as it is their address that is publicly posted, instead of your own.

Note: This step is optional, but recommended.

An operating agreement is not required in Massachusetts, but it’s a good practice to have one anyway. This is simply an internal document that establishes operating procedures – and ownership rights – for your business. It is drafted, signed by all stakeholders/owners, and kept on file internally. Because it establishes ownership structure, it’s a very important document for any business with multiple owners.

Operating agreements can be drafted with the help of a local attorney, or through an online service like ZenBusiness. Once you have the document drafted, make copies of it and store them in a secure place.

The Certificate of Organization is the primary document that MA LLCs must file (in most states, this is called the Articles of Organization). This document formally establishes your LLC as a legal entity. To file it, you will need to select a business name and a registered agent, and establish other important details about your planned business.

There are two ways to file this document: Online, or by mail. The filing cost is $500 (Massachusetts is one of the more expensive states to start an LLC in).

Once submitted, you will need to wait for MA to process your documents. This can take as little as a few business days but may take 1-2 weeks depending on the current backlog. You will be notified if there are any issues with your application.

An EIN, or employer identification number, is required to hire employees. It’s also necessary for opening a business bank account, and other important business activities.

Because this is a federal tax ID number, it’s handled by the IRS, not Massachusetts. To apply, simply fill out this application on the IRS website. There is no cost, and the application is very quick.

Your business will likely need various business permits and licenses in order to operate legally. This is in addition to the actual LLC paperwork. The Certificate of Organization establishes your LLC as a legal entity, but it’s not the only paperwork you’ll need to complete.

The specifics vary depending on the type of business and the location(s) where it operates. At a minimum, you will likely need a business license in the city or town where you operate. Multi-location businesses may need multiple permits.

You will also need to register for tax accounts with the state of Massachusetts. This is necessary in order to pay employer/payroll taxes, sales taxes, etc.

Certain industries require more licenses than others – check this page on Mass.gov for more information.

Business owners will need to stay on top of various requirements in order to keep their business compliant with various government agencies. There are requirements on the federal level, and also state and local level – so it can be a lot to keep track of at times.

This list is certainly not exhaustive, but here are some of the important things you will need to handle on an ongoing basis:

There are other requirements, but the specifics vary for each business. It’s a good idea to research all your requirements now, and make a plan to stay on top of everything. Using a service such as ZenBusiness or Northwest Registered Agent can also help, as these companies will help remind you of important filing dates.

To keep your accounting as simple as possible, it’s very important to separate business and personal finances. The best way to do this is to open a dedicated business bank account and use this exclusively for business-related transactions.

You can likely open a business account at your existing bank, or shop around to find a better option in your area. You will need an EIN, business license, and other business documents (call ahead for specific requirements).