To form an LLC, file a Certificate of Organization with the following information: name, address, business character, resident agent, and managers, for a $500 filing fee. Follow these steps to complete the process:
Steps to Form an LLC
- Name your LLC
- Choose a resident agent
- File the Certificate
- Create an operating agreement
- Get an EIN
- Open a bank account
Remember to file an annual report which also costs $500.
Costs and Considerations
The main costs associated with starting an LLC in Massachusetts are the Certificate of Organization and the annual report fees. Additional expenses include:
- Resident agent fees
- Licenses
- Insurance
Consider the structure and goals of your business when forming an LLC, as it provides liability protection but may not be the best fit if you are planning to have shareholders.
Timing and Maintenance
It typically takes 1-2 weeks to form an LLC in Massachusetts. To maintain good standing, submit a Massachusetts LLC annual report each year on the anniversary of the LLC’s formation, either online or by mail to the Secretary of the Commonwealth.
Most LLCs will need an EIN, which can be obtained for free from the IRS.
Online and Mail Filing
You can start your Massachusetts LLC online within 4 hours or by mail in 4-5 days. Aside from the $500 filing fee, there’s also a $500 annual report fee.
By using a service to assist with the process, you can save on costs related to licenses and insurance.