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Every step to open an LLC in Massachusetts and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of the Commonwealth (Corporations Division) · Department of Revenue (DOR) · Department of Unemployment Assistance (DUA) · Department of Family and Medical Leave · Attorney General's Fair Labor Division · Department of Industrial Accidents.
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Massachusetts business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through Corporations Division online filing (File Online).
LLC filings call the agent a resident agent (or agent for service of process) at a Massachusetts resident office.
DBAs (business certificates) are filed with the city or town clerk where the business is located. Fees vary by town.
Corporation articles cost $275 for up to 275,000 shares, plus $100 per additional 100,000 shares. LLC formation and annual report fees ($500 each) are among the highest in the country.
Register for withholding and sales tax in MassTaxConnect. New businesses must file and pay electronically. Withholding is filed annually, quarterly, or monthly based on the amount withheld.
No city or county income or payroll taxes. Business certificates (DBAs) and some local permits are handled by each city or town.
Massachusetts taxes income at 5.00%, plus a 4% surtax on income over $1,107,750.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Massachusetts calls it a Sales and Use Tax Registration Certificate (Form ST-1). Register with the Massachusetts Department of Revenue through MassTaxConnect before you make your first taxable sale in Massachusetts. You'll collect tax from customers and send it to the state.
Give your supplier Form ST-4, Sales Tax Resale Certificate so you don't pay tax on inventory you'll resell. The buyer must be a registered Massachusetts vendor buying to resell, and the seller keeps the ST-4 as proof; it cannot be used for tobacco products. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Massachusetts pass $100,000 (prior or current calendar year), even with no office here.
Clothing costing $175 or less per item is exempt, and only the amount over $175 is taxed on pricier items.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Massachusetts. Reports and payments are usually quarterly.
Massachusetts PFML is funded by contributions of 0.88% of eligible wages in 2026 (25+ employees). Employers with fewer than 25 covered workers owe only the 0.46% employee share. Contributions are remitted quarterly through MassTaxConnect.
Required at 1 or more employees (any hours). Domestic workers are covered at 16+ hours per week. Sole proprietors and LLC members may exclude themselves. Uninsured employers face stop work orders and fines of $100 per day or more. No state fund.
Also report independent contractors paid $600 or more in a year within 14 days. Report through MassTaxConnect.
Massachusetts's wage payment rules:
$15.00 an hour.
All employers must provide earned sick time. It must be paid if the employer has 11 or more employees.
No state-run retirement program mandate for private employers.
Massachusetts doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
The Employer Medical Assistance Contribution is paid with UI on the first $15,000 per employee. New employers are exempt for 3 years, then pay 0.12%, 0.24%, and 0.34% from year 6 on.
Employers with 25 or more Massachusetts employees must include pay ranges in job postings. Employers with 100+ that file federal EEO reports must also file them with the state by February 1.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Employers with 6 or more employees must file the Health Insurance Responsibility Disclosure (HIRD) in MassTaxConnect between November 15 and December 15. Paper forms are not accepted.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Corporations pay corporate excise of 8.0% of net income plus a property or net worth measure, with a $456 minimum.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Based on yearly tax collected: $100 or less files annually, $101 to $1,200 quarterly, and $1,201 or more monthly. Returns are due by the 30th day after the period ends. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Massachusetts and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 31 | W-2s to employees; annual withholding return (small filers) | Massachusetts |
| Apr 30, Jul 31, Oct 31, Jan 31 | Quarterly withholding, PFML, and UI wage reports | Massachusetts |
| Feb 1 | EEO report filing (100+ employees) | Massachusetts |
| Nov 15 - Dec 15 | HIRD filing window (6+ employees) | Massachusetts |
| Formation anniversary | LLC annual report ($500) | Massachusetts |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Massachusetts |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Massachusetts state filing fee for an LLC is $500. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Massachusetts if you sell taxable products or services there. The state rate is 6.25%, and local taxes may add to it. Registration cost: See state site.
Out-of-state sellers must register once their sales into Massachusetts pass $100,000 a year. Having an employee or office in Massachusetts also creates nexus right away.
Recurring filings include: file the HIRD form each year; file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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