Start a Massachusetts LLC for FREE^*

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LLCs are a type of business entity that have the key benefit of providing liability protection to its owners (referred to as members). This means the members’ personal assets are generally safeguarded against the company’s debts or legal disputes, except in cases where they may be personally liable under other laws. 

In the state of Massachusetts, an LLC is defined as “an unincorporated organization formed under this chapter and having 1 or more members.” (Massachusetts General laws, chapter 156C section 2). That means an LLC in Massachusetts is a company created within the state or a company that becomes subject to Massachusetts’ state regulations surrounding LLCs (Chapter 156C). 

LLCs are popular among business owners because they offer flexibility and simplicity in managing their operations. Owners have the option to decide whether the company will be managed by its members or by appointed managers. Additionally, compared to corporations, LLCs typically have fewer legal compliance requirements and a more straightforward operational structure. 

Finally, LLCs allow business owners to pay taxes for business income as part of their individual taxes, although LLC owners may elect to pay their business taxes as a separate entity, similar to how a corporation is taxed. This can give business owners more flexibility to choose the tax classification that is right for them as they grow and evolve their business.

LLCs can protect your personal assets against business debts and lawsuits in many cases, as long as you take careful steps to separate your business and personal affairs and maintain compliance.

Here are some common ways to separate your affairs and stay compliant:

• Take care to maintain separate bank accounts.
• Keep your personal and business assets separate.
• Keep records of your business matters.
• Formally document business decisions.
• Conduct business under your business name.
• Uphold LLC compliance requirements in Massachusetts, including:
  • Filing an Annual Report.
  • Properly maintaining corporate records.

If you don't maintain your compliance obligations or fail to properly separate your business and personal matters, then you may be opening yourself up to personal liability for business activities or responsibilities.

You may want to register for an LLC in Massachusetts when:

• You own or want to start a business in Massachusetts, or want to expand an existing business into Massachusetts, and want to stay legally compliant. 
• You own or want to start a business, and want more flexibility on how you will manage the business or pay taxes than a corporation would provide.
• You want to protect your personal assets from potential liability resulting from business you conduct in the state of Massachusetts. 
• You own or want to start a business, and want to register in Massachusetts to open accounts, lease or buy property, secure funding, or hire employees.

There are a few steps required to start your LLC in Massachusetts, including:

• Find a unique name for your LLC. Massachusetts has a few requirements on business names, including a requirement to be unique. You can search the Commonwealth of Massachusetts' database of business entities in the state to ensure your business' name is unique. Rocket Lawyer can also help you identify a unique name when you register your business.
• Provide a Massachusetts address that will be used as your official LLC address. The address that you list may either be your home, an office, or another physical location, but it cannot be a PO box.
• Appoint a registered agent. A registered agent is the person or company that serves as the contact point between the state and the LLC. The registered agent also receives official correspondence from other businesses. In many cases, you can act as your own registered agent if you have a business address in Massachusetts, but you may consider using a registered agent service if you are not located in Massachusetts or would like an extra layer of privacy. Rocket Lawyer can act as your registered agent or specify your registered agent when you register your LLC.
• File your Certificate of Organization with the Commonwealth of Massachusetts to register your LLC. Once you have a business name and registered agent identified, you can register your business as a Massachusetts LLC with the Massachusetts Secretary of State by filing your Certificate of Organization. Rocket Lawyer can assist you in filing your LLC's Certificate of Organization with the Massachusetts Secretary of State.
• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is crucial for tax filing, payroll management, employee payments, and opening a business bank account. Rocket Lawyer can assist you with securing your LLC's EIN in order to do these vital business tasks.
• Create your LLC Operating Agreement (Optional). In Massachusetts, it is optional to have an LLC Operating Agreement, which helps govern the ownership structure, member rights and responsibilities, and decision-making process of your LLC, among other things.

To start an LLC in Massachusetts, you must file a document called a Certificate of Organization with the Commonwealth of Massachusetts. In other states, this document may be called a "Certificate of Formation," "Certificate of Filing," or "Articles of Organization."

In Massachusetts, you will need the following information to file your Certificate of Organization:

• The name of the LLC.
• The LLC's federal identification number.
• The LLC's registered office in Massachusetts.
• The business' general character.
• The name and address of the LLC's resident agent, also known as a registered agent in other states.
• The names and business addresses of each manager and managing member, and those of each person in addition to managers who are authorized to execute documents on behalf of the LLC and those who are authorized to execute records regarding real estate.

In Massachusetts, there are a few fees that you may be charged when you choose to start your LLC. They include the following:

State fee: $520

Rocket Lawyer filing fee: $0 $99.99

• First filing FREE for RocketLegal+ members.
• Get additional filings HALF OFF with RocketLegal+.

Processing time: 2-3 business days

Note: The above state fees and processing times are provided as a summary and may encompass various fees mandated by your state or local authorities. If you have questions, speak to a Rocket Lawyer representative to understand the costs and processing times that apply to your specific filing.

Taxes for your LLC will depend on how you file and how much your LLC earns.

The default method for LLC taxes is called "pass-through taxes." This means that the profits and losses of the LLC are passed through to the individual members, who report them on their personal tax returns. The share of profits or losses each member receives and reports on their taxes is determined by the terms in the LLC's operating agreement. With pass-through taxes, the LLC itself does not file its own tax returns, and the owners only pay taxes on the business once. (Note: The term "pass-through taxes" is an informal term. Single-member LLCs are treated as a "disregarded entity" and taxed as a sole proprietorship, and LLCs with multiple members are treated as a partnership.)

With pass-through taxes, Social Security and Medicare taxes are not withheld from the members' paychecks, so they are responsible for paying these as "self-employment taxes" instead. In addition to Social Security and Medicare taxes, LLC members will need to pay taxes as a percent of their share of profits every quarter as estimated taxes. LLC members can also deduct business expenses and losses from their personal tax returns, which can significantly reduce the amount of profits reported to the IRS.

Alternatively, if the LLC members prefer not to utilize pass-through taxes, they have the option to elect for the LLC to be taxed as a corporation instead. This may be preferred when the corporate tax rate is lower. To elect a different tax classification, you need to file the necessary forms with the IRS.

If you do not want to tackle your LLC's taxes alone, our Rocket Tax services can help you by gathering some information about your business and then matching you with the right tax professional.

The state of Massachusetts says that the names of all LLCs in the state:

• Shall contain the words ''limited liability company,'' ''limited company,'' or the abbreviation ''L.L.C.,'' ''L.C.,'' ''LLC,'' or ''LC."
• May contain the name of a member or manager.
• Cannot be too similar to existing LLCs in the state.

Rocket Lawyer can help you determine whether your business' name is eligible for registration in Massachusetts and may be able to help you reserve the name before you file your LLC.

Any LLC that does business in Massachusetts must register with the state. Massachusetts includes the following activities, among others, in the definition of doing business:

• Owning or leasing real estate in the commonwealth.
• Engaging in the construction, alteration or repair of any structure, railway or road or engaging in any other activity requiring labor.

LLCs based in Massachusetts are called "domestic LLCs," and out-of-state LLCs are called "foreign LLCs." Foreign LLCs and domestic LLCs may have different filing and compliance requirements -- Rocket Lawyer can help you navigate foreign LLC registration, regardless of where you live.

If you are planning to conduct business in another state, you may need to register an LLC in that state. Rocket Lawyer can help you determine which states you should register in. 

Other states may have their own rules for taxing foreign LLCs that originate in Massachusetts or domestic LLCs that also operate in Massachusetts. Talk to an attorney to understand the tax requirements for the state(s) in which you plan to operate.

Yes, LLCs with only one owner can still register their business in Massachusetts. In this case, the LLC would be referred to as a single-member LLC (SMLLC), whereas if there is more than one owner, the LLC may be called a multi-member LLC. 

The main difference between single-member and multi-member LLCs lies in ownership structure and management. With a single-member LLC, you have full control over the business. In contrast, a multi-member LLC has multiple owners, each with a specific percentage of ownership as defined in the operating agreement. This means that in a multi-member LLC, owners share profits, losses, and tax responsibilities based on their ownership percentage.

However, many aspects of LLCs remain the same whether they are single-member or multi-member. Both types of LLCs default to pass-through taxation (though separate filing is an option), and owners can choose to manage the LLC themselves ("member managed") or hire designated managers to handle day-to-day operations ("manager managed").

An LLC is a structure establishing your business as an entity that can legally conduct business in the state(s) within which it is filed. Alternatively, a "Doing Business As" filing (or "DBA"), is a legal mechanism to specify another name under which you plan to do business. DBAs may also be called a "Fictitious Business Name" (or "FBN"), "Assumed Business Name" (or "ABN"), and are commonly confused with sole proprietorships. While DBAs can help you specify a name for a business, they do not establish a legal business entity and also do not provide business owners with liability protection. In Massachusetts, filing a DBA, or Fictitious Business Name, is required if your business is planning to operate under a different name than the one that is filed with your  Certificate of Organization.

If you have an existing company and would like to conduct business under a new or additional name, a DBA will allow you to conduct business with the new name through your existing LLC, S-Corp, C-Corp, or Nonprofit. If you're not sure if you should form an LLC or file a DBA, a Rocket Lawyer representative can help you understand the differences and take the next step.

After organizing an LLC in Massachusetts, the state requires you to:

• Establish a Registered Agent and Office: Establish a registered agent and office that is maintained within the state. If you don't have an agent or office, our Registered Agent Services can help you meet these requirements.

Although not required, you may also want to:

• Hold a meeting: A first meeting with members of an LLC is not required by law, but it is highly suggested in order to get organized. Also, unlike corporations, LLCs are also not required to maintain Meeting Minutes, but these documents are also recommended as they provide records for important decisions made.
• Create an Operating Agreement: While creating an Operating Agreement is not mandatory, it's highly advisable. We can help you create your Massachusetts LLC Operating Agreement online.

An LLC is one of the easiest businesses to maintain. This is what you should keep in mind when looking to maintain your Massachusetts LLC:

• LLCs are required to file an Annual Report each year.

The State of Massachusetts requires the following information to be kept:

• A current list of the full name and last known address of each member and manager.
• A copy of the certificate of organization and all certificates of amendment.
• Copies of the limited liability company's federal, state, and local income tax returns and reports, if any, for the three most recent years.
• Copies of any then effective written Operating Agreements and of any financial statements of the limited liability company for the three most recent years.
• Information regarding the amount of cash each member contributed to the business and any events that would require members to make any additional contributions, receive distributions, or cause the LLC to be dissolved.