Business Formation / LLC Massachusetts

How Much Does It Cost to Start an LLC in Massachusetts?

📝 Initial Formation Costs

• Certificate of Organization: $500 (mandatory)
  This fee is required to officially register your LLC with the Massachusetts Secretary of the Commonwealth. 

• Online Filing Convenience Fee: $20 (optional)
  If you choose to file your Certificate of Organization online, there's an additional convenience fee. 

• Name Reservation: $30 (optional)
  To reserve your desired LLC name for 60 days before filing. 

• Doing Business As (DBA) Registration: $50–$65 (optional)
  If you plan to operate under a different name than your LLC's legal name.

🔄 Ongoing Annual Costs

• Annual Report Fee: $500 (mandatory)
  Due each year on the anniversary of your LLC's formation to keep it in good standing. 

🛡️ Additional Optional Costs

• Registered Agent Service: $0–$300/year
  You can act as your own registered agent at no cost, or hire a service for privacy and convenience. 

• Operating Agreement: $0–$500
  While not required, drafting an operating agreement is recommended to outline the management structure and operating procedures of your LLC.

• Business Licenses and Permits: $50–$350
  Depending on your industry and location, you may need specific licenses or permits.

💰 Estimated Total Costs

• Minimum Startup Cost: $500
  (Filing Certificate of Organization)

• Typical Startup Cost with Optional Services: $680–$1,300
  (Including name reservation, DBA registration, and registered agent service)

• Annual Maintenance Cost: $500–$800
  (Annual report plus optional registered agent service)

📌 Additional Considerations

• Federal EIN: Obtaining an Employer Identification Number (EIN) from the IRS is free and necessary for tax purposes.

• State Taxes: Massachusetts LLCs are generally pass-through entities for tax purposes, but you may be subject to state income tax, sales tax, or other taxes depending on your business activities.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization