Last Updated: September 10, 2024, 8:28 am by TRUiC Team


Massachusetts LLC Cost

The initial cost to form an LLC in Massachusetts starts at $500, which covers the fee for filing your LLC's Articles of Organization.

However, the total cost of establishing a Massachusetts LLC can vary depending on your specific needs and preferences.

Our detailed Massachusetts LLC Cost guide provides a comprehensive breakdown of the expenses involved in setting up and maintaining an LLC in the state.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

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How Much Does a Massachusetts LLC Cost

Below is a table that outlines the key requirements and associated fees for forming a limited liability company (LLC) in Massachusetts.

LLC Cost Summary

Requirement Fee
Certificate of Organization $500
Statutory Agent $0-$150+
LLC Name $0-$130

Massachusetts LLC Filing Fee ($500+)

To register your LLC in Massachusetts, you’ll need to file certain formation documents with the Secretary of the Commonwealth.

The specific document you will need to file will depend on whether you are creating a domestic LLC or a foreign LLC:

Both filings require a $500 processing fee. If you choose to use an LLC formation service, there will be an additional service fee on top of the state filing fee.

The cost of using an LLC formation service varies, starting as low as $0 and going up to $300+ depending on the optional extras you add and the provider you choose.  

Note: Online or fax filings are subject to an additional $20 expedited fee. 

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Massachusetts Resident Agent ($0-$150+)

Massachusetts requires you to appoint a registered agent, which is referred to as a resident agent, when forming your LLC. This person or entity will receive important legal and tax documents on behalf of your business.

Although you can act as your own resident agent for free, many choose to hire a professional service to ensure compliance with state regulations and protect their privacy. This is because your registered agent’s address will become publicly available after your LLC is formed. 

The cost for a professional registered agent service in Massachusetts typically ranges between $125 and $300 per year.

Note: The resident agent must sign the Consent of Resident Agent section of your Certificate of Organization in order for their appointment to be accepted.

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Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

Massachusetts LLC Name ($0-$130)

While the process of naming your Massachusetts LLC doesn’t incur a direct cost, there are two potential expenses to be aware of.

Reserving Your Business Name

If you want to reserve your chosen LLC name before officially forming your business, you can file an Application of Reservation of Name with the Secretary of the Commonwealth, accompanied by a $30 fee.

Once approved, your chosen name will be reserved for 60 days, with the option to extend the reservation for an additional 60 days for another $30 fee.

Note: It’s advisable to have a look at both the Business Entity Database and the Reserved Business Name Database in order to avoid selecting a name that is already in use.

You should also conduct a quick domain registration search in order to ensure that your name’s corresponding domain is available (this is the URL that you will need for your business website). 

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Doing Business As (DBA) Name

If your business will operate under a name different from its legal name, you will need to register a Doing Business As (DBA) name.

Massachusetts law requires that all DBA names be unique, and so you should first search local city records in your business’s area to confirm that your desired name is available.

Once confirmed, you can register the DBA by visiting your local city’s clerk's office and paying a filing fee, which is $65 for residents and $100 for non-residents.

Your DBA registration is valid for four years, after which it must be renewed.

Note: The Massachusetts City and Town Directory can help you find the appropriate local office for this step.

Optional Massachusetts LLC Formation Costs

Beyond the standard fees, there are several other costs you may encounter when forming an LLC in Massachusetts — depending on your specific situation.

Massachusetts LLC Operating Agreement 

While not required by law, drafting an operating agreement is a wise step for most Massachusetts LLCs.

This internal document clarifies the roles and responsibilities of members or managers and can help resolve disputes.

You can create an operating agreement on your own at no cost, or hire a service or attorney to do so, which might cost several hundred dollars.

Remember, this document does not need to be filed with the Secretary of the Commonwealth as it is solely an internal document. 

Expedited Massachusetts LLC Filing

The Secretary of the Commonwealth provides expedited filing services for those who need to fast-track their LLC formation.

The cost of expedited services varies based on your order's subtotal:

Expedited Services Cost

Order Total Expedited Fee
$0.01 to $14.99 $3.00
$15.00 to $24.99 $3.50
$25.00 to $84.99 $6.00
$85.00 to $149.99 $10.00
$150.00 to $499.00 $15.00
Exactly $500.00 $20.00
$500.00 and over 4.50% of the total

Note: For more information, you can contact the Secretary of the Commonwealth’s office directly either via phone or by email.

Local Business Licenses

Depending on your LLC's location and industry, you may need to obtain a local business license to comply with your city’s and/or county’s regulations.

For example, if you operate a restaurant in Boston offering both dine-in and takeout services, you’ll need to pay an initial licensing fee of $200 for the first year, with adjustments in subsequent years based on your gross sales.

For a food truck in the same city, there is a flat licensing fee of $300, which covers compliance with health and safety standards for mobile food services.

Certificate of Good Standing

A Massachusetts Certificate of Good Standing, which is often needed to open a business bank account or secure loans, confirms that your LLC is properly registered and in good standing with the state.

This certificate, which verifies your LLC’s compliance with annual report filings, is available for $25 through the Secretary of the Commonwealth’s Corporations Division.

Note: Certificates requested before 7 pm may be issued the following business day.

Certified Copies of Business Documents

If you need certified copies of your LLC’s documents for legal or financial purposes, you can obtain them from the Secretary of the Commonwealth’s Corporations Division for a cost of $7 for the first page plus $2 per additional page.

Ongoing Costs to Maintain a Massachusetts LLC

Once your LLC is established, there are recurring costs that you’ll need to manage to keep it compliant with state regulations.

We’ve provided a quick overview of the most common fees below. 

Annual Report

All LLCs in Massachusetts must file an annual report with the Secretary of the Commonwealth’s Corporations Division. This report is due on the anniversary of your LLC's formation and carries a $500 fee.

You can file your annual annual report either online or via mail, but if filing online, an additional $20 expedited fee will apply.

Note: Failure to file on time results in a $50 per month penalty fee, and continued non-compliance may lead to the dissolution of your LLC.

Resident Agent Maintenance

If you choose to use a professional registered agent to handle your legal documents, you’ll need to pay an annual fee for their services. 

The cost of this service varies, typically ranging from $125 to $300 per year depending on the provider you go with and the features you choose — such as mail forwarding and a business phone number.

Keep in mind that, even though this is optional, it’s highly recommended (especially for new business owners). 

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Massachusetts LLC vs Other States

Massachusetts has very high registration and maintenance costs for LLCs in comparison to other states.

Even so, it’s important to note that the best state to form your business in will generally be where you will be operating from. 

This is because, otherwise, you will likely need to register in more than one state, and will as a result be required to pay registration and maintenance fees more than once. This often defeats the point of registering in a more affordable “foreign” state.

Massachusetts LLC Cost FAQ

To create an LLC in Massachusetts, the principal expense is the $500 filing fee for the Certificate of Organization. This fee applies whether you file online, by mail, by fax, or in person with the Secretary of the Commonwealth's office. 

Remember that these are the foundational costs, and your business might require additional expenses such as obtaining relevant business licenses or permits.

In Massachusetts, the Certificate of Organization can be filed online, by mail, by fax, or in person. These documents, along with the $500 filing fee, should be sent to the Secretary of the Commonwealth.

Yes, in Massachusetts, your LLC must have a resident agent, also known as a Registered Agent in other states. This person or entity agrees to accept legal documents on behalf of your LLC and must consent to this role by signing a specific consent form.

If you decide to change your Resident Agent after the formation of your LLC in Massachusetts, your new Resident Agent needs to officially accept this responsibility. They do so by signing the change form, thereby confirming their willingness to act in this capacity.

In Massachusetts, a business certificate, also known as a DBA (doing business as) name, is used if your LLC operates under a different name than its legal name. If you intend to conduct business under your LLC's legal name, a business certificate is not necessary.

The fee to file an annual report in Massachusetts is $500. All LLCs in Massachusetts must file an annual report. 

This report keeps the state informed about your business's contact and ownership details.

Based on the given data, aside from the cost associated with filing the annual report, Massachusetts does not impose specific state compliance fees for LLCs. However, it's always a good idea to check with the Secretary of the Commonwealth's office for the most accurate and current information.

Before you file your Certificate of Organization, you should confirm that your desired LLC name is available. In Massachusetts, you can do this using the Business Entity Search and, for more certainty, the Name Reservation Search.

In Massachusetts, a Certificate of Good Standing is a document provided by the Secretary of the Commonwealth. It confirms that your LLC is legally registered and in compliance with all state requirements. This certificate can be valuable when you're looking to open business bank accounts, apply for business loans, or engage in other business transactions.

Article Sources

Massachusetts Department of Revenue:
https://www.mass.gov/orgs/massachusetts-department-of-revenue

IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Massachusetts Secretary of the Commonwealth - Corporations Division:
https://www.sec.state.ma.us/divisions/corporations/corporations.htm

SBA - Apply for licenses and permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - Massachusetts Chamber of Commerce List:
http://www.officialusa.com/stateguides/chambers/Massachusetts.html