Forming an LLC in
Massachusetts MA
Checked November 4, 2026 · How we score
Filing fee
$500
Articles of Organization
Annual fee
$500
per year, normalised
State income tax
9%
top rate
Cost rank
#51
of 51, first-year fees
Massachusetts LLC costs
| Filing fee | $500 |
|---|---|
| Annual report / franchise fee | $500 Annual report: $500 due on your formation anniversary (online filing); Massachusetts also levies a $456 minimum excise tax on LLCs taxed as corporations. |
| First-year state fees | $1,000 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 5 days |
Massachusetts taxes for LLCs
| Personal income tax (top) | 9% 5% flat plus a 4% surtax on income over $1 million = 9% top rate. |
|---|---|
| Corporate income tax | 8% 8% on net income with a $456 minimum excise tax. |
| State sales tax | 6.25% |
| Franchise / gross receipts | Minimum corporate excise tax $456 applies to C-corporations and LLCs electing corporate taxation. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in Massachusetts
- Strong investor and talent ecosystem
- Well-developed courts and legal system
Watch out for
- $500 filing and $500 annual report are the highest in the country
- Heavy tax rate on high earners
Best for: Biotech and tech founders based in Boston · Businesses that must register locally
Massachusetts LLC: common questions
How much does an LLC cost in Massachusetts?
Filing the Articles of Organization in Massachusetts costs $500. After that, expect a $500 annual report fee. Annual report: $500 due on your formation anniversary (online filing); Massachusetts also levies a $456 minimum excise tax on LLCs taxed as corporations. A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in Massachusetts?
Yes. Massachusetts requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in Massachusetts?
Yes. Massachusetts does not require US citizenship, residency or an SSN to own an LLC; you need a Massachusetts registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Massachusetts publishes, since member or manager names may appear in public filings.
Does Massachusetts have a state income tax?
Yes. 5% flat plus a 4% surtax on income over $1 million = 9% top rate. LLC profits normally pass through to the owners' personal returns. Corporate income tax: 8% on net income with a $456 minimum excise tax.
Why does a Massachusetts LLC cost $500 a year?
Massachusetts charges $500 for the Certificate of Organization and another $500 every year for the annual report. That is the highest recurring LLC fee of any state apart from California's franchise tax and Delaware's $400 tax.
Sources
Massachusetts Secretary of State business filings
- Massachusetts Secretary of State / business filing office
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.