Does Massachusetts have a state income tax?

Yes, Massachusetts has a personal income tax rate of 5% and a corporate tax rate of 8%.

Do I need an EIN to start a business in Massachusetts?

Yes, most businesses need an EIN (Employer Identification Number). It's free from the IRS — apply online at IRS.gov and receive it immediately.

How to Start a Business in Massachusetts

Q: How long does it take to form a business in Massachusetts?

Massachusetts typically processes business filings in 3-5 business days. Online filing is available through the Secretary of the Commonwealth.

Everything you need to form an LLC or Corporation in Massachusetts — filing fees, tax rates, and step-by-step instructions.

$500

LLC Filing Fee

$275

Corp Filing Fee

Income Tax

3-5

Days to File

Steps to Start a Business in Massachusetts

Choose Your Business Structure

Decide between LLC, Corporation, S-Corp, Sole Proprietorship, or Partnership. LLCs are the most popular choice in Massachusetts for their simplicity and liability protection.

Choose a Business Name

Your business name must be unique in Massachusetts. Search the Secretary of the Commonwealth database to check availability. For LLCs, the name must include 'LLC' or 'Limited Liability Company.'

Appoint a Registered Agent

Every Massachusetts business needs a registered agent — a person or service with a physical address in Massachusetts who receives legal documents on your behalf.

File with the Secretary of the Commonwealth

File your Articles of Organization (LLC) or Articles of Incorporation (Corp) with the Massachusetts Secretary of the Commonwealth. Filing fee: $500 for LLC, $275 for Corp.

Get Your EIN

Apply for a free Employer Identification Number (EIN) from the IRS. Takes minutes online at IRS.gov. You'll need this for taxes, banking, and hiring.

Open a Business Bank Account

Separate your business and personal finances. You'll need your EIN, formation documents, and operating agreement. Holdings makes this easy with integrated banking.

Business Entity Types in Massachusetts

LLC

Corporation

Corporation (C-Corp)

Businesses planning to raise venture capital, go public, or have complex ownership structures.

Massachusetts filing fee: $275

S-Corp

S Corporation

Small businesses wanting to reduce self-employment tax while keeping pass-through taxation. Must meet IRS eligibility (≤100 shareholders, US citizens/residents only).

Sole Proprietorship

Solo freelancers and contractors. No state filing required but offers no liability protection.

Partnership

General Partnership

Two or more people starting a business together. Consider an LLC instead for liability protection.

Nonprofit

Nonprofit Corporation

Organizations with charitable, educational, or religious missions seeking 501(c)(3) tax-exempt status.

Getting an EIN in Massachusetts

An Employer Identification Number (EIN) is a 9-digit number assigned by the IRS to identify your business for tax purposes.

Free

IRS Filing Cost

Instant

Online Application

9 Digits

EIN Format

Apply for EIN at IRS.gov →

Massachusetts Business Taxes

Corporate Tax Rate	8%
Personal Income Tax	5%
Annual Report Fee	$500
Note	One of the highest LLC filing fees in the US.

Official Massachusetts Resources

🏛️

Secretary of the Commonwealth

File your business formation documents

📋

IRS EIN Application

Get your free EIN online instantly

Frequently Asked Questions

How much does it cost to start an LLC in Massachusetts?

Filing an LLC in Massachusetts costs $500 with the Secretary of the Commonwealth. You'll also pay $500 annually for the annual report. Add $50–$300/year if you hire a registered agent service.

How long does it take to form a business in Massachusetts?

Massachusetts typically processes filings in 3-5 business days. Online filing is available and generally faster.

Do I need a registered agent in Massachusetts?

Yes. Every business entity in Massachusetts must have a registered agent — a person or service with a physical address in Massachusetts who can receive legal and tax documents on your behalf. You can serve as your own registered agent if you have a Massachusetts address.

Should I form an LLC or Corporation in Massachusetts?

For most small businesses, an LLC is the better choice — simpler management, flexible taxation, and personal liability protection. Choose a Corporation if you plan to raise venture capital or go public. In Massachusetts, an LLC costs $500 to file vs $275 for a Corporation.

Start a Business in Other States

Alabama LLC: $200 Alaska LLC: $250 Arizona LLC: $50 Arkansas LLC: $45 California LLC: $70 Colorado LLC: $50

View all 51 states →

Related Resources

NAICSFind Your NAICS Code for Registration GlossaryWhat Is an EIN? (Employer ID Number)GlossaryWhat Is a DBA?FeesCompare Business Bank Accounts

Starting a business in Massachusetts?

Holdings gives you a business bank account, EIN assistance, and bookkeeping — all in one platform.

Get Started with Holdings →