Massachusetts LLC Requirements

Updated for 2026 · Official Secretary of State Website

Massachusetts has the highest LLC formation and annual maintenance costs in the nation — $500 to file and $500 per year for the annual report. These fees reflect the state's high cost of doing business overall. Despite this, Massachusetts's world-class universities, thriving biotech and tech sectors, and access to venture capital make it a top destination for innovative startups.

Filing Fee

$500

One-time state fee

Annual Fee

$500

Per year

Processing

1-2 business days

Online filing

Deadline

Anniversary date

Annual report due

Note: $500 by mail, $520 online (includes $20 online fee).

Above Average Cost

Massachusetts is the most expensive state for LLC formation and maintenance. The $500 filing fee is roughly 4x the national average, and the $500 annual report is approximately 10x the national median.

Notable Facts About Massachusetts LLCs

Massachusetts has the highest LLC filing fee ($500) and annual report fee ($500) in the nation
First-year total state costs of $1,000+ are the steepest for any LLC in any state
The state is home to MIT and Harvard, driving a powerful startup and biotech ecosystem
Massachusetts uses 'Certificate of Organization' instead of the more common 'Articles of Organization'

Tax Information for Massachusetts LLCs

Massachusetts has a flat 5% individual income tax rate (plus 4% surtax on income over $1 million). LLCs taxed as pass-through entities pay at individual rates. There is no separate franchise tax for LLCs. The state has a 6.25% sales tax.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Massachusetts naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Massachusetts.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Massachusetts who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Massachusetts Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Massachusetts requires periodic reports due by Anniversary date. The filing fee is $500. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $500

Deadline: Anniversary date

Annual report due on the anniversary date of LLC formation each year.

$500 filing fee + $20 online fee = $520 total online. Highest annual cost in the nation.

Need a Registered Agent in Massachusetts?

Every Massachusetts LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

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

The state filing fee to form an LLC in Massachusetts is $500 for the Certificate of Organization. $500 by mail, $520 online (includes $20 online fee). This cost is above average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Massachusetts?

Massachusetts charges $500 for its periodic reporting requirement, due Anniversary date. $500 filing fee + $20 online fee = $520 total online. Highest annual cost in the nation. Massachusetts is the most expensive state for LLC formation and maintenance. The $500 filing fee is roughly 4x the national average, and the $500 annual report is approximately 10x the national median.

How long does it take to form an LLC in Massachusetts?

Online filing in Massachusetts typically takes 1-2 business days. You'll need to file Certificate of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Massachusetts?

Yes, Massachusetts requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Massachusetts LLC pay?

Does Massachusetts require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Massachusetts. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Massachusetts's default LLC laws.