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

If you’re starting a business in Massachusetts, you may consider forming a limited liability company (LLC).  Before diving in, you should know that this comes with costs. 

To help prepare you, this handy guide details all you need to know about the cost of launching an LLC in Massachusetts.

Massachusetts LLC Costs 

Requirement	Cost
Name Reservation	$30
Certificate of Organization	$500
Business Licenses	Varies by company
DBA Name	Approximately $50
Annual Report	$500
Total:	$1,080

Name Reservation Fee

One of your first decisions will be what to name your LLC. Once you’ve chosen the perfect name, you can reserve it with the state until you’re ready to form your LLC officially.

To do so, you’ll need to make sure the name is available. Here’s how:

1. Check for availability in Massachusetts

To ensure the business name is available, go to the Secretary of the Commonwealth’s business entity search and reserved name search and enter the names you’d like and similar names. You don’t want a business name that can be easily confused with other businesses in Massachusetts.

2. Check Massachusetts LLC name regulations

In Massachusetts, your LLC names must contain the words “limited liability company,” “limited company,” or the abbreviation “L.L.C.,” “L.C.,” “LLC,” or “LC.” 

3. Check Trademarks

It’s a good idea to ensure the name has not been trademarked. Check with the US Patent and Trademark Office to ensure the name is available nationally. 

4. Check domain name availability

You’ll want to ensure the domain name is available. You can check at a site like GoDaddy.com and use .com or .org, as those give your business more credibility.

5. Google it

Do a Google search to ensure the name is not being used in the U.S. or internationally. This is particularly important if you plan to have a strong online presence for your business.  

Once you’ve done your due diligence and know your preferred business name is available, you can reserve the name with the state by using this name reservation form at the Secretary of the Commonwealth’s website.

Cost to Register Your LLC in Massachusetts

To officially form your LLC, you’ll file your certificate of organization with the state of Massachusetts by visiting the Secretary of the Commonwealth’s website. You’ll need the following information:

• Your LLC’s federal employer identification number (if available)
• Name of your LLC
• Street address of your LLC
• General description of your business
• Latest date of dissolution (if specified)
• Name and address of your agent for service of process and your agent’s consent
• Name and business address of each manager or anyone authorized to file documents for your LLC

Business Licenses and Permits

Your LLC may also need to obtain licenses and permits at the federal, state, and local levels. These, of course, come with varying fees. 

At the federal level, licenses and permits are generally industry-specific and may include health licenses and permits from the Occupational Safety and Health Administration (OSHA).  

You may need a general business license to operate at the state level. If you sell tangible goods or services subject to sales tax, you’ll need a sales tax license, also known as a seller’s permit. 

Check the SBA guide for specific licenses required for your business. 

Here are some standard licenses and permits you may need:

• Industry-specific licenses for certain professions and industries such as construction, plumbing, electrical, childcare, food handling, liquor, architecture, and finance
• Building and zoning permits
• Doing business as (DBA) permit if you’re doing business using a name other than your LLC name
• Health licenses and permits at federal, state, and local levels
• Fire permits
• Sign permits

This is a significant step in the LLC formation process, so make sure to check with your state and local government offices to find out all the licenses and permits that you need and their costs. If you operate without the proper licenses and permits.

If you need help, it’s a good idea to consult with a business attorney to ensure you’re in full compliance. You can also use a service like MyCorporation to do the research and provide you with all the forms you need to license your business. 

Doing Business As (DBA) Name

If you plan to do business under a name that is not your LLC, you’ll need to register a “doing business as,” or DBA, name. In Massachusetts, this can also be called a business certificate. You’ll have to file with your local city clerk’s office to do so.

Annual Reports

In Massachusetts, you must file an annual report for your business.  The report verifies your business information and confirms that you’re still doing business.

In Closing

Starting an LLC in Massachusetts is a complicated process that includes a handful of fees. There are several hoops to jump through, but the benefits of ensuring your LLC is properly registered, and fully compliant are huge, while the alternative risks significant penalties. 

LLC formation can be daunting, so many entrepreneurs prefer a professional service like ZenBusiness. This ensures the process is done correctly, saving time and giving you peace of mind.