Massachusetts LLC formation cost

Massachusetts LLC formation starts with one of the nation's highest filing fees, at $500 by mail or $520 online for your Certificate of Organization. This steep barrier to entry makes Massachusetts among the most expensive states for business registration, but understanding the complete cost picture helps you budget appropriately for both formation and long-term operations.

Between a mandatory $500 annual report, potential registered agent expenses, and industry-specific licensing costs, Massachusetts LLC ownership requires substantial ongoing investment. The key is distinguishing between unavoidable state requirements versus optional services that provide genuine value for your business.

Mandatory Massachusetts LLC formation costs

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Massachusetts charges $500 for filing by mail and $520 for online or fax submissions, with the additional $20 representing an automatic expedited processing fee. This represents one of the highest formation fees in the nation.

Optional formation costs

Beyond the mandatory $500 filing fee, additional expenses aren't legally required but may provide value depending on your LLC's complexity and comfort level with independent formation.

1. Professional services

For LLCs with multiple members or complex structures, attorneys charge $1,500-$5,000 for comprehensive formation packages including custom operating agreements. CPA consultations run $300-$900 annually. Online formation companies offer a middle ground at $40-$240 plus state fees.

2. Additional filings

• Name reservation costs $30 and holds your chosen name for 60 days
• DBA registration runs $65 for residents ($100 for non-residents) at your city or town clerk's office
• Certified copies cost $12 each when banks need official verification
• Your EIN remains free from the IRS 
• Local business licenses typically cost $100-$500, depending on the industry

Ongoing annual costs for forming an LLC in Massachusetts

After formation, recurring expenses maintain your Massachusetts LLC's good standing. Budget for several ongoing obligations that keep your business compliant. Miss deadlines and you'll face dissolution or loss of the ability to conduct business.

• Annual report: Due yearly on formation anniversary ($500 mail/$520 online)
• Registered agent fees: $100-$300 annually if using a professional service
• Local business licenses: Renewal requirements vary by municipality
• Professional services: Accounting $300-$900 annually, legal consultation as needed

Massachusetts imposes no franchise tax on LLCs; profits flow to your personal tax return, though the state's $500 annual report fee represents one of the nation's highest recurring compliance costs.

This makes Massachusetts' ongoing compliance substantially more expensive than most states, despite the pass-through tax structure.

FAQs about LLC formation costs in Massachusetts

Are there any hidden fees when forming a Massachusetts LLC?

The $500 annual report fee surprises many entrepreneurs who budget only for the initial filing. Industry-specific licensing creates additional unexpected expenses.

Can I get refunds if my Massachusetts LLC filing is rejected?

There are no refunds once the state processes your paperwork. As such, we advise that you double-check everything before submitting.

How do Massachusetts LLC costs compare to neighboring states?

Massachusetts' formation and annual fees significantly exceed nearby states. You'll pay more than Rhode Island, Connecticut, or New Hampshire for both startup and ongoing compliance.

Streamline Massachusetts LLC formation costs with Discern

Discern handles Massachusetts LLC formation filings, provides professional registered agent services, and automatically manages annual renewals to prevent late penalties.

Book a demo today and discover how Discern streamlines Massachusetts formation and ongoing compliance management.