Steps to Form an LLC in Massachusetts
Step 1: Choose Your LLC Name
Your Massachusetts LLC name must be distinguishable from other business entities registered in the state. The name must include "LLC," "L.L.C.," or "Limited Liability Company." Search the Secretary of the Commonwealth's database to check name availability before filing.
Step 2: Appoint a Registered Agent
Every Massachusetts LLC must have a registered agent — a person or company with a physical address in Massachusetts who can receive legal documents on behalf of your LLC. You can serve as your own registered agent or hire a professional service ($50-300/year).
Step 3: File Articles of Organization
File your Articles of Organization with the Secretary of the Commonwealth. The filing fee is $500 and typical processing takes 1-2 business days. You can file online at sec.state.ma.us.
Step 4: Create an Operating Agreement
While not always legally required, an operating agreement is essential. It outlines ownership percentages, profit distribution, management structure, and what happens if a member leaves. Banks often require one to open a business account.
Step 5: Get an EIN (Employer Identification Number)
Apply for a free EIN from the IRS at irs.gov. You'll need this to open a business bank account, hire employees, and file taxes. The process takes about 5 minutes online.
Step 6: Open a Business Bank Account
Separate your personal and business finances by opening a dedicated business checking account. This protects your personal liability shield and makes accounting easier.
Key Facts About Massachusetts LLCs
- Highest filing fee in the US
- Strong biotech and education sectors
- Fast processing times
Ongoing Requirements
Massachusetts requires a annual report with a fee of $500. Make sure to file on time to keep your LLC in good standing.
Need Help Estimating Business Costs?
Use our Business Startup Cost Calculator to estimate your total launch budget, or check the average salary in Massachusetts to understand your local market.