Form an LLC in Massachusetts with Inc Authority for Free

Choosing a business name is the first step to forming a Massachusetts LLC. You need to choose an LLC name that adheres to Massachusetts LLC naming guidelines and also represents the essence of your company. 

Per Massachusetts guidelines, your LLC name must include “limited liability company”, “LLC”, or “LC.” Also, you can check if your LLC name is available for use in the state using the Corporations Division Business Entity Search. 

If you have found a unique LLC business name but are not ready to file your LLC yet, you can apply to reserve the name for 60 days. This will help prevent others from claiming the name before your registration process. 

Note that this application process costs $30. In addition to reserving your business name, you should get a domain name that matches your business name. This will be useful when you create a website for your new business.

Once you’ve got your LLC name sorted, employ a registered agent as required by Massachusetts law. You can decide between three options—you, a family member, or a professional registered agent services provider. 

Your registered agent must reside in the state, be over 18 years old, and have a physical address within Massachusetts. They will be your point of contact for receiving official legal documents and state correspondence. 

You have the flexibility to choose how your LLC operates in terms of the number of owners. You may have a single-member LLC, which provides management flexibility, or a multi-member LLC if there are multiple LLC owners.

Also, decide the management structure for your LLC. In a member-managed LLC, the owners manage the business and make decisions. In a manager-managed LLC, you appoint managers to handle these things.

Your LLC Certificate of Organization is the document that officially forms your LLC in Massachusetts. Every Limited Liability Company in Massachusetts is required to file it with the Massachusetts Secretary of the Commonwealth.

It contains important information about your LLC, such as the LLC’s name, business address, registered agent information, and purpose. It can be submitted online or by mail with a filing fee of $500 plus $20 for fax or online filings. 

While Massachusetts law doesn’t mandate an LLC Operating Agreement, having one is strongly recommended for your Massachusetts LLC. This agreement acts as a rulebook outlining the internal operations and member responsibilities.

Having an Operating Agreement helps to clarify ownership percentages, profit and loss sharing ratios, and voting rights for each member. Also, some banks may require an Operating Agreement for you to open an LLC bank account.

An EIN, similar to a Social Security Number for individuals, serves as a federal tax identification number for your business. If you plan to bring employees on board, you’ll need an EIN to report payroll taxes and withhold income taxes.

Even if your LLC does not hire employees and you choose to report business income on your tax return, having an EIN simplifies the process. You can apply for an EIN online or by mail for free through the Internal Revenue Service.

While not legally required in Massachusetts, opening a business bank account for your LLC is highly recommended to keep your business finances separate. To open one, you’ll need an LLC operating agreement and an EIN. 

With a bank account, you’ll have a clear overview of your business’s income and expenses. Additionally, having a business bank account with a consistent transaction history shows financial responsibility and can improve your credit score.

LLCs are not required to obtain a general business license in Massachusetts but you might still need specific permits or licenses based on your type of business to operate. These requirements depend on your industry and location.

Depending on your business activity, you might need an occupational license or general business license. Always check with your local municipality’s business office to determine if any permits are necessary for your LLC.

LLCs in Massachusetts benefit from a tax structure known as a “pass-through entity.” This means the LLC itself doesn’t pay income tax directly but the income or loss of the LLC is reported by each member on their individual tax return. 

Massachusetts LLCs have the option to elect out of this default status and be taxed as a Corporation. This might be preferable in some situations, but it typically comes with increased tax complexities and the potential for double taxation. 

Filing for a DBA (Doing Business As) is optional for LLCs and is not a mandatory step involved in forming a Massachusetts LLC. Your LLC’s official name is the one you filed in the Certificate of Organization during the formation process. 

But if you plan to operate your LLC under a name different from its official name, then you’ll need to file for a DBA to the City Clerk’s office with a fee of $65. The DBA creates a public record that links your assumed name with your LLC.     

Establishing a trademark is not necessary for an LLC in Massachusetts but it can help protect your business identity and brand elements. It safeguards your company’s name, logo, or slogan from being used by competitors. 

Trademark registration occurs at the federal level through the United States Patent and Trademark Office (USPTO). There is no separate trademark registration procedure in Massachusetts, so get it from USPTO.

Securing a website, although optional, helps you boost your LLC’s online visibility, showcase your offerings, and engage with potential customers. Use website design and marketing services to build your business website.

Customers can learn about your products or services, contact you, and potentially conduct transactions directly through your website, expanding your reach beyond geographical limitations. Your website can also be your digital storefront for your business information.

Maintaining ongoing compliance even after forming your LLC is crucial. Compliance requirements for LLCs in Massachusetts include paying taxes on time, filing an annual report, and filing for amendments when required 

Your LLC must file an annual report with the Secretary of the Commonwealth. It is a necessary condition to ensure your LLC remains active. The filing fee is $500 and is due by the anniversary date of your LLC’s formation.

With this plan, you’ll have access to the following features: 

• Business name check: With this plan, you can perform a free business name search using the easy-to-use business name search tool by Inc Authority. This will help you to easily check for an available and unique name for your LLC. 

• 1-year registered agent services: An LLC in Massachusetts requires a registered agent to receive legal documents on behalf of the business. The free plan offers you the services of a Massachusetts registered agent for free for a year. 

• Digital document storage: The free plan also allows you to keep business records online on your Inc Authority account where you can conveniently manage and retrieve them anytime. Such documents can include your LLC operating agreements or annual reports.

• Tax advisory: Although LLCs in Massachusetts offer a flexible tax structure, you still need guidance on how to take advantage of certain tax benefits available. Inc Authority’s free LLC formation plan provides free tax planning consultation. 

• LLC formation: Filing the Massachusetts LLC Certificate of Organization with the Secretary of the Commonwealth is required to establish your LLC. With this plan, you’ll get access to an experienced team that will review and submit your application efficiently.

• S-Corp election and filing: To obtain the federal S-Corp status for your LLC and to be taxed as one, you must complete and submit an S-Corp election form (Form 2553). You can get assistance from the Inc Authority in completing and submitting this form.

• Business funding analysis: This is one of the complimentary business formation features that Inc Authority provides with its free plan. You’ll have professionals evaluate your business’s financial status and recommend reliable sources of funding.

The free plan offers basic LLC formation services that you need to start your LLC. To access additional services and packages, you’ll need to check out its paid plans.

Price: Free

Some of the premium services you can get with the Starter plan include: 

• LLC operating agreement: An Operating Agreement is an important document that outlines the internal governance of your LLC. Inc Authority can assist you in creating one, ensuring that you craft a thorough agreement that includes all the important details and rules for your LLC operation.

• Employer Identification Number: If your LLC hires any staff, you need an EIN to identify your business and withhold taxes from their income. Inc Authority offers assistance with the application process through the Starter plan and can help you obtain your Employer Identification Number with ease.

• Corporate forms and documents package: This plan provides various templates for essential business documents, allowing you to save time and effort. Additionally, Inc Authority offers assistance in creating these documents, ensuring they are completed accurately and efficiently.

• Regular compliance notifications: With the Starter plan, you’ll get notifications and reminders of upcoming deadlines to help you stay on top of important filings and other requirements that are crucial for maintaining your business’s legal status and staying compliant.  

• Detailed tax consultation: Inc Authority, through its paid plans, offers access to an extensive tax planning consultation with a professional. The tax specialist will provide in-depth guidance on tax deadlines, deductions related to common business expenses, and other tax inquiries.

• Web domain + 5 business email addresses: Inc Authority offers a bundled package to kickstart your online presence and launch a website for your new business. This includes a web domain for your LLC and 5 business email addresses that use your domain name.

Price: Custom

Here are the additional services you’ll get with this plan:

• Dedicated customer success advisor: The Fasttrack plan goes beyond just document filing, it offers a personalized and comprehensive LLC formation service. You’ll be assigned a dedicated success advisor who acts as your guide throughout the LLC formation process. 

• Private banking specialist: Inc Authority assists in finding suitable banking options for your business in the Fasttrack plan. You’ll be connected to a private banking specialist who will provide you with the needed resources and recommendations for business banking solutions.

• One-on-one business advisory: Beyond helping with LLC formation, Inc Authority offers ongoing business support. Inc Authority provides a dedicated business advisory with tailored business advice from specialists across several industries based on your specific business goals and challenges.

• Expedited preparation & filing: With the Fasttrack plan, you can enjoy expedited filing for your business documents. Inc Authority prioritizes your business formation application and the team of experts works diligently to review and submit it within the same business day.

The Fasttrack plan is ideal if you want swift filing and individualized services. However, if you do not want any add-on features and don’t mind waiting a few weeks to launch your LLC, you can opt for the free plan.