How To Form an LLC In Massachusetts (MA)?

If you want to learn how to form an LLC in Massachusetts, then we are here to help. The Bay State is an excellent place to start a business, whether it’s in Boston, Cambridge, Plymouth or somewhere else entirely.

Forming an LLC in Massachusetts can seem complex and a little scary at first, but it needn’t be. In this article, we’ll walk you through the process of creating a company, show you what forms you need to file and even explain how to speed up the process using third-party companies.

So if you’re ready to launch your startup, then let’s begin.

Choose a Name for Your Massachusetts LLC

Choosing a name for your Massachusetts LLC is the first step in getting your business off the ground. Don’t know where to start? Don’t worry, just make sure that you choose a memorable name that is related to the services you offer and is easy to spell and pronounce.

You’ll also want to make sure it complies with Massachusetts’s naming guidelines and requirements:

• Your Massachusetts LLC name must be distinguishable and unique from other Massachusetts LLCs, corporations, and partnerships.
• Your chosen Massachusetts LLC name must include either of the following phrases at the end: “L.L.C.,” “LLC,” or “limited liability company”
• It must not include words that confuse your Massechusetts LLC with government agencies and other business entities.
• Restricted words like universities, attorneys, and banks may need additional paperwork and a certified professional, like a lawyer or doctor, to be part of your LLC

You can find a full breakdown of the requirements on the Secretary of the Commonwealth of Massachusetts website.

If you’re not ready to create your business just yet, you can file to reserve your chosen LLC name on the same website. You just need to fill in a form and pay a $30 filing fee.

You should see if your ideal business name is available as a domain at the same time. Use a website like Namecheap to run a search. A .com domain is ideal, but a .net or .co domain can work just fine.

Hire a Registered Agent

A registered agent in Massachusetts is a business entity or person designated to receive legal notices on behalf of the LLC. Massachusetts law requires LLCs to appoint a registered agent.

You can appoint yourself as a registered agent for your LLC, or you can nominate any member of your business or choose a third party to act as a registered agent.

If you pick an individual to act as a registered agent, they must fulfill the following requirements:

• Must have a physical street address within Massachusetts (not a P.O. Box address)
• Must be 18+ years old
• Must be available to receive and forward legal and business documents during all Massachusetts working hours.

In most cases, however, it’s much easier to choose a trusted company to act on your behalf. They can take care of all the paperwork and leave you to run your business. Choose from one of the following recommended providers below:

ZenBusiness

ZenBusiness is one of our most recommended registered agent service providers in Massachusetts. Over the years, ZenBusiness has helped more than 300,000 business entities to streamline their processes and remain compliant.

ZenBusiness charges $199 per year for the following services:

• Fast turnaround service
• Email notifications
• Mail forwarding
• Document scanning
• Access to an online personalized dashboard
• Email notifications

You can also upgrade their registered agent service perks to unlock additional perks, such as two free filing amendments per year and annual report notifications.

Northwest

Northwest is another top recommendation for a registered agent in Massachusetts. Their pricing is transparent and cheaper than ZenBusiness. Northwest charges $125 for the following:

• Compliance notifications
• Pre-filled state forms
• Annual report reminders
• Scanned documents
• Mail forwarding
• Online document storage
• Compliance calendar
• Corporate guides

Another good thing with Northwest is that you can unlock a discounted annual rate of only $100 if you use their registered agent services in more than four states.

Other LLC formation services offered by Northwest are phone services, mail forwarding, annual report filings, trademarking, virtual office, payment processing, and foreign qualification.

IncFile

IncFile is another top option for Massachusetts business owners needing registered agents and LLC formation services. If you hire IncFile for both LLC formation and registered agent, they will give you a free first year of registered agent service, which includes the following perks:

• Access to all your legal and business correspondence via your customizable dashboard
• Custom mail and SMS notifications
• Automatic mail forwarding

The annual IncFile package includes a registered agent plus other LLC formation perks like trademarking, amendments, foreign qualification, virtual address, certificate of good standing, EIN, tax consultations, and business permits and licenses.

File Articles of Organization

After choosing a name for your Massachusetts LLC and hiring a registered agent, the next step is registering your business with the Massachusetts Secretary of the Commonwealth. This step entails filing an Article of Organization, also known as a Certificate of Organization, at a cost of $500.

The simplest way to file an Article of Organization in Massachusetts is online via the Commonwealth’s website. You will be required to provide the following information:

• The name of your Massachusetts LLC
• Street address of your LLC
• The street address, name, and signature of the hired registered agent
• Street addresses and names of managers and members
• The general character of your business
• The effective date of your LLC (if not immediate)

If you find the online system complex or don’t want to file your Article of Organization online, you can file it by mail. You will need to download the Massachusetts LLC Article of Organization form. Then, accurately and completely fill out the form, and send the copy together with a check of $500 (filing fee) to the following address:

William Francis Galvin
Massachusetts Secretary of the Commonwealth
One Ashburton Place, Room 1717
Boston, MA 02108

Create an Operating Agreement

An Operating Agreement is an internal document that defines how your business entity will operate.

Massachusetts state law doesn’t require business owners to have a written Operating Agreement. However, having one will keep everyone involved clear on who is responsible for what and how the company’s profit will be released.

You can consult a lawyer to create an operating agreement or do so yourself. The following information is usually included.

• The LLC dissolution process
• Rules on removing and adding members
• Loss and profit distribution
• Ownership allocation
• Membership rights and responsibilities

Obtain all Licenses and Permits

Depending on your business activities and location, you may be required to obtain relevant licenses and permits. You must also pay a filing fee for these permits and licenses.

There are two sources that can assist you in knowing the business permits and licenses you may require. These include:

• Division of Occupational Licensure: It lists all boards that oversee industry-specific licenses, such as the board of accountants, massage therapists, electricians, architects, etc. When you click on your relevant board, you will be redirected to a page with contact details that you can use to inquire about the permits and licensing requirements and the application process.
• Mass.gov professional permits & licenses page: It provides a list of all industries in Massachusetts. When you click on your relevant industry link, you will be directed to a more comprehensive list of industry-specific permits and licenses. Click on the permit or license to learn more about how to apply for it.

Get Your Federal and State Tax IDs

A Federal and State Tax ID is an employer identification number similar to your Social Security Number.

It is needed to perform most financial business tasks, such as filing annual tax returns, hiring employees, applying for a loan, applying for business permits and licenses, and opening a business bank and credit account.

Applying for a Federal and State Tax ID is a very straightforward and quick process for most Massachusetts LLCs. You can get it for free via the IRS website. The process takes 10-15 minutes, and you must complete it in one online session.

Open a Business Bank Account

It’s essential to open a business bank account to keep the company’s finances separate from your own and make it a lot easier to file tax returns. Having a business bank and credit account also makes it easier to track your expenses and income for your Massachusetts LLC and budget accordingly.

Opening a business bank and credit account in Massachusetts is quick and straightforward. You should only need the following documents:

• An Operating Agreement
• A Federal and State Tax ID
• An Article of Organization

You may want to open a business account with one of the following top banks in Massachusetts:

• Middlesex Savings Bank
• UniBank for Savings
• Eastern Bank

Purchase Massachusetts Business Insurance

One of the final steps in forming your Massachusetts LLC is to buy business insurance. You can choose to buy general liability insurance and professional liability insurance. If you intend to hire employees, you will need to obtain workers’ compensation insurance coverage by law.

Quickly find a competitive quote by using a comparison website like Insureon.

Buy an LLC Formation Package to Speed Up the Process

Forming an LLC in Massachusetts can be a time-consuming and challenging experience if you do it on your own. That is why most business owners prefer purchasing an LLC formation package to speed up the process, especially when they don’t want to handle paperwork.

The good news is that many LLC formation companies offer excellent packages. For example, Northwest and ZenBusiness are Massachusetts’s top two recommendations for LLC formation services.

For a fixed fee of $125 and $199 per year, respectively, you will get core LLC formation perks, such as registered agent, Operating Agreement, Article of Organization, customer support assistance, EIN, regulatory advice, expedited filing, etc.

LegalZoom is another top recommendation offering free and premium LLC formation packages. For instance, their Basic package is entirely free. You will only pay for the relevant state filing fee. However, you can get additional perks and expedited filing with their Pro and Premium LLC formation packages at $249 and $299 per year, respectively.

FAQs About Forming an LLC in Massachusetts (200 Words)

How Long Will It Take to Form My Massachusetts LLC?

Forming an LLC (filing an Article of Organization) in Massachusetts online usually takes one to two working days. There is no guidance on how long it takes the state government to confirm your company formation.

How Much Does It Cost to Set Up an LLC in Massachusetts?

The current cost of forming an LLC (filing Article of Organization) in Massachusetts is $500. You may also need to pay to obtain permits, licenses and other relevant documents.

Can I Act as my Own Registered Agent in Massachusetts?

Yes. Massachusetts laws allow entrepreneurs and business owners to appoint themselves as registered agents for their LLCs. However, you must have a permanent Massachusetts street address, be 18+ years old, and be available to receive documents during regular business hours.

Can I Form a Single-Member LLC in Massachusetts?

Yes. Massachusetts allows you to form a single-member LLC. The process for forming your single-member LLC in Massachusetts is similar to the steps discussed in this guide.

Form Your Massachusetts LLC Today

Forming an LLC in Massachusetts can offer many benefits for entrepreneurs and business owners, including credibility, flexibility, and liability protection.

By following the steps discussed in this article and seeking professional guidance, you can form your LLC and establish your business in Massachusetts. Don’t forget you can hire a reputable LLC formation company to speed up the process if you find the steps difficult or time-consuming.

Also see:

• Massachusetts (MA) Secretary of State (SOS) LLC & Business Search
• Massachusetts (MA) Registered Agent Services
• How To Find Massachusetts Bookkeepers