How Much Does an LLC Cost in Massachusetts

The minimum Massachusetts LLC cost is $500, which covers the processing fee for filing your LLC formation documents, known as the Articles of Organization.

Having said that, the total cost of forming a Massachusetts LLC will depend on several factors, including your personal preferences and business needs.

In our How Much Does an LLC Cost in Massachusetts article, we’ve broken down everything you need to know about the different costs associated with launching and maintaining an LLC.

Massachusetts LLC Cost

In the table below, you can find a summary of the main requirements of forming a Massachusetts limited liability company (LLC) and their associated fees.

                                                         

Requirement	Fee
Certificate of Organization	$500
Statutory Agent	$0-$150+
LLC Name	$0-$130
Operating Agreement	$0+

Massachusetts LLC Filing Fee ($500+)

In Massachusetts, you will need to submit your LLC’s formation documents with the Secretary of the Commonwealth in order to register your business.

The exact document you need to file will depend on whether you are registering a domestic or a foreign entity:

• Domestic LLCs: Must file a Certificate of Organization
• Foreign LLCs: Must file an Application for Registration

Both documents will need to be submitted alongside a $500 processing fee. Having said that, if you choose to use an LLC formation service, the cost will be a little higher as it will include a small service fee in addition to Massachusetts’s state filing fee.

The fees for an LLC formation service can range significantly, but can start from as low as $29, increasing if you decide to purchase any additional offerings.

Note: Filings done online or via fax are subject to an additional $20 expedited fee. For more details on the formation process, you can check out our Massachusetts LLC Formation guide.

Massachusetts Resident Agent ($0-$150+)

You will need to appoint a registered agent — known as a resident agent in Massachusetts — in order to form your LLC. This is a person or business entity that you must assign to receive tax, legal, and governmental correspondence on behalf of your Massachusetts LLC.

While you can act as your own resident agent at no extra cost, it’s often recommended to hire a professional service so you avoid any potential penalties or legal issues caused by non-compliance with state regulations.

Hiring a third-party service can also be a great way of ensuring that your personal information remains private.

The average cost of a registered agent service in Massachusetts can range significantly, but is generally between $49 and $150 per annum depending on the features offered.

Note: Your LLC’s resident agent will need to sign the Consent of Resident Agent section of your Certificate of Organization in order to be accepted.

Alternatively, you can find some of the top recommendations for professional RA services in our Best Registered Agent Services of 2024 article.

Naming Your Massachusetts LLC ($0-$130)

When forming your Massachusetts LLC, you’ll be required to pick a suitable name that’s available to use.

There are two potential costs to be aware of when naming your LLC.

Reserving Name

If you are not ready to register your LLC but want to safeguard your chosen name, you can choose to reserve it with the state.

To reserve a name, you will need to submit an Application of Reservation of Name along with a $30 filing fee to the Secretary of the Commonwealth. Once your application is reviewed and it’s been confirmed that the name you’ve chosen is available, it will be reserved for a period of 60 days.

During this time, you have the option to extend the reservation for another sixty days by paying an additional $30 fee.

Note: It’s advisable to conduct a preliminary search of both the Business Entity Database and the Reserved Business Name Database in order to avoid choosing a name that’s already taken.

When choosing a name for your LLC, it’s important to select one that corresponds to an available domain. This is because a matching domain ensures consistency between your LLC’s name and its online presence, which helps to strengthen its brand recognition and credibility.

Doing Business As (DBA) Name

If you plan to operate your business under a name that differs from your LLCs official one, you will need to file a Doing Business As (DBA) name.

Keep in mind that Massachusetts law requires all DBA names to be unique, and so you will need to first search the city records in your business’s area in order to ensure that your desired name is not already taken by another business entity.

Once you’ve confirmed the availability of your desired DBA name, you will have to visit the local town or city clerk’s office to submit your registration and pay a filing fee, which is $65 for Massachusetts residents and $100 for non-residents.

Your DBA registration will remain valid for four years, after which it will need to be renewed.

Note: To find the appropriate local office to conduct this search, you can use the Massachusetts City and Town Directory.

Massachusetts LLC Operating Agreement ($0+)

While not mandatory, it’s good practice for LLCs to have an operating agreement.

This document defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.

While you can opt to hire an online service or business attorney to draft this document for you (which typically costs at least a few hundred dollars), it’s actually quite straightforward to do it yourself at no extra cost.

It’s also important to note that this doesn’t actually need to be filed with the Massachusetts Secretary of the Commonwealth — it’s purely an internal document.

Additional Massachusetts LLC Formation Costs

On top of the more common fees outlined above, there are a number of additional formation costs that LLCs in Massachusetts may encounter depending on their circumstances.

We’ve summarized some of these additional costs below:

Expedited Massachusetts LLC Filing

The Secretary of the Commonwealth offers expedited filing services for LLCs seeking to expedite their formation process.

The cost for these services varies based on the subtotal of your order:

Order Total	Expedited Fee
From $0.01 to $14.99	$3.00
From $15.00 to $24.99	$3.50
From $25.00 to $84.99	$6.00
From $85.00 to $149.99	$10.00
From $150.00 to $499.00	$15.00
Exactly $500.00	$20.00
$500.00 and over	4.50% of the total

Note: If you have questions or need further assistance, you can contact the Secretary of the Commonwealth’s office by phone or email.

Local Business Licenses

In order to comply with the local-level regulations of your city and county, your business may be required to obtain some local business licenses.

While very few municipalities impose a general licensing requirement for businesses operating within their limits, your LLC might need a municipal license if it’s involved in certain activities.

For example, if your LLC runs a sit-down restaurant in Boston that offers both dine-in and takeout services, you’ll be required to pay an initial licensing fee of $200 for the first year. This fee will then adjust annually based on your restaurant’s gross sales.

Conversely, should your business involve operating a food truck within the same city, you’ll be subject to a flat licensing fee of $300, which is designed to cover the health and safety regulations that are pertinent to mobile food services.

Certificate of Good Standing

A Massachusetts certificate of good standing is a document often required to open a business bank account, or by lenders in order to check that your LLC is properly registered and legally authorized to conduct business with the state.

This certificate verifies your business’s name, date of formation, and compliance with annual report filings. It also lists your LLC’s managers and signatories and confirms that your business has not been canceled or withdrawn (and thus is in good standing).

To make a request, you will have to visit the Secretary of the Commonwealth’s Corporations Division website and complete the Certificate Order form.

This comes with a $25 application fee, which can be paid by cash, money order, bank check, or credit/debit card.

Note: For filing fees paid before 7pm, the certificate may be issued on the following business day.

Certified Copies of Business Documents

You may need certified copies of your business documents if you’re dealing with financial institutions, regulatory bodies, or are involved in legal proceedings.

You can obtain these certified copies from the Secretary of the Commonwealth’s Corporations Division at a cost of $7 for the first page plus $2 for each additional page per certified document.

Cost to Maintain an LLC in Massachusetts

In addition to the cost of forming an LLC in Massachusetts, there are also several ongoing costs you’ll be responsible for paying each year.

We’ve outlined these recurring costs associated with maintaining a Massachusetts LLC below.

Annual LLC Fee

Every LLC in Massachusetts is obligated to file an annual report with the Secretary of the Commonwealth’s Corporations Division every year.

The annual report is due on the anniversary of your LLC’s original registration date, and carries a cost of $500. Keep in mind that this can be submitted both online or via mail, but an additional $20 expedited fee is required for the former.

Note: If you don’t file your annual report on time, a $50 penalty will be levied for each month the report is delayed; prolonged failure to file can lead to the administrative dissolution of your LLC.

Resident Agent Maintenance

If you decide to take advantage of a professional resident agent in order to handle your legal documents, you’ll be required to pay an annual fee in return for their services. This fee commonly ranges between $45 and $300 depending on the provider and features you select.

While you’re not required to use a professional resident agent service, it’s highly recommended.

Taxes

In addition to the federal taxes your LLC is required to pay regardless of the state it’s based in, there are a variety of state-specific taxes in Massachusetts you need to be aware of, including:

• Sales tax
• Employment taxes
• Business privilege taxes
• Property taxes

Additionally, there are various local taxes your LLC may need to pay depending on the municipality or county it’s based in, such as:

• Sales and use taxes
• Property tax

Massachusetts vs Other States

In comparison to many other states, Massachusetts requires higher initial formation and annual maintenance fees for businesses.

The initial filing fee for an LLC in Massachusetts is $500, with ongoing annual reports also costing $500. In contrast, Oklahoma offers a more cost-effective structure, with an initial LLC filing fee of $100 and an annual filing cost of just $25.

Having said that, Massachusetts compensates for these expenses with its dynamic business climate and extensive support networks.

Ultimately, it’s important to understand that the best state to form your LLC will generally be the one in which you plan to primarily operate your business from.

This is because this makes it far easier to stay legally compliant on a number of levels, including taxation, licensing, and filing requirements, as you’ll only need to deal with one state’s set of rules.