How to Start an LLC in Massachusetts: What You Should Know

Starting a business in Massachusetts? Forming an LLC (Limited Liability Company) can protect your personal assets, simplify taxes, and provide a flexible business structure. This guide walks you through every step of forming a Massachusetts LLC in 2025, including costs, filing requirements, and compliance tips.

Step 1: Choose a Name for Your LLC

• Your LLC name must include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.”

• It must be unique and distinguishable from other Massachusetts businesses.

• Check availability using the Massachusetts Secretary of the Commonwealth business entity search.

• If you plan to operate under a different name (DBA), file a Business Certificate with your city or town clerk.

Tips:

• Avoid names that are too similar to existing companies.

• Ensure the name reflects your brand and is easy to remember.

Step 2: Appoint a Registered Agent

• A Registered Agent is required for all Massachusetts LLCs.

• Must have a physical street address in Massachusetts (P.O. boxes not allowed).

• Responsible for receiving legal documents and official notices.

• Can be:

  • Yourself

  • Another individual in Massachusetts

  • A professional Registered Agent service

Tip: Using a professional service can provide privacy and ensure you never miss official correspondence.

Step 3: File the Certificate of Organization

• The Certificate of Organization legally creates your LLC.

• File with the Massachusetts Secretary of the Commonwealth online, by mail, or in person.

• Filing Fee: $500

• The Certificate must include:

  • LLC name

  • Registered agent name and Massachusetts address

  • Purpose statement

  • Member or manager information

Processing: Your LLC exists legally once the Certificate is approved and recorded.

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Step 4: Create an Operating Agreement

• Not required by Massachusetts law but highly recommended.

• Serves as an internal document outlining:

  • Management structure (member-managed or manager-managed)

  • Member responsibilities

  • Voting rights

  • Profit distribution

  • Rules for adding or removing members

Tip: Many banks require an Operating Agreement to open a business account.

Step 5: Obtain an EIN (Employer Identification Number)

• An EIN is issued by the IRS and is required for:

  • Federal and state tax filings

  • Hiring employees

  • Opening a business bank account

• Cost: Free

• Apply online for instant issuance if you have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Step 6: File Annual Reports

• Massachusetts LLCs must file annual reports to maintain good standing.

• Filing Fee: $500

• Due Date: Anniversary of LLC formation each year

Tip: Filing on time avoids penalties and keeps your LLC legally compliant.

Summary Table of Massachusetts LLC Formation

Best Practices for Massachusetts LLCs

• Keep personal and business finances separate to maintain liability protection.

• Maintain accurate records of registered agent changes and member information.

• Use a professional accountant to track taxes, annual filings, and compliance deadlines.

• Keep a copy of the Operating Agreement and all filings for reference.

Summary

Forming an LLC in Massachusetts in 2025 is straightforward but involves careful attention to detail. Start by choosing a unique name, appointing a registered agent, and filing your Certificate of Organization. While an Operating Agreement is optional, it provides legal clarity and protects your business. After obtaining your EIN and filing annual reports, your LLC is fully compliant and ready to operate. Following these steps ensures your Massachusetts LLC remains in good standing and allows you to focus on growing your business.

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