CobaltProsper

How to start an LLC in Massachusetts

By Brent Chudoba, editor Updated

Forming an LLC in Massachusetts costs $500 to file the Certificate of Organization with the Massachusetts Secretary of State. After that you file an annual report of $500. Massachusetts charges no franchise tax on a standard LLC. Resident agent (in-state registered agent) required; may be an individual resident or business entity. Filing fee is $500 for the initial Certificate of Organization (same fee online or by mail) plus a $500 annual report fee due each anniversary date.

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

Massachusetts LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Organization)$500
Annual report$500/year
Franchise or business taxNone
Registered agentRequired

Source: Massachusetts Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Massachusetts?

  1. Name your LLC. Pick a name that is available and meets Massachusetts naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Massachusetts requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Organization. Submit it to the Massachusetts Secretary of State and pay the $500 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Massachusetts charges $500 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Massachusetts have a franchise tax on an LLC?

No. No Massachusetts franchise tax on LLCs taxed as pass-throughs. However, LLCs electing C-corporation taxation are subject to the corporate excise tax: 8.0% of net income apportioned to MA plus $2.60 per $1,000 of Massachusetts tangible property value or net worth, whichever measure is greater (minimum $456 annual tax).

How is an LLC taxed in Massachusetts?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Massachusetts has a state individual income tax with a top rate of 9% (graduated brackets), so those profits are taxed on your Massachusetts return on top of federal tax. 5% flat on earned and unearned income, plus 4% surtax on taxable income exceeding $1,107,750 (2026 threshold, inflation-adjusted annually; $1,083,150 in 2025), effective top rate 9%

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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