How to Start a Business in Massachusetts

Massachusetts Business Facts

With the most educated workforce and one of the highest median incomes in the nation, Massachusetts has one of the healthiest economic climates of all states. Massachusetts also has a low poverty rate and contains one of the largest economies in the nation, with clusters of STEM facilities and top colleges and universities a benefit to both employers and job seekers.

Major Companies

Massachusetts is the headquarters of major companies including General Electric, The TJX Companies, Raytheon, Staples and Liberty Mutual Insurance.

Startup Environment

Massachusetts and in particular its capital, Boston, has been hailed as the best startup location in the United States. Massachusetts provides entrepreneurs with numerous  incubators and accelerators for small business success and the state’s innovative business ecosystem introduces and establishes partnerships between tech firms and institutions of higher education. Massachusetts is also known as a worldwide leader in various industries including maritime trade, higher education, finance and biotechnology.

Step 1: Decide on a Business Structure

There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.

• A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s more complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity and provides very easy management (doesn’t require directors or officers) and taxation. The LLC has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.

Step 2: Choose a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Massachusetts, but we highly recommend you do the following before searching Massachusetts state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.

• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).

• Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.

• Make sure your company name choice is available by searching the Massachusetts Business Entity Database. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

Restrictions on Massachusetts Business Name & Business Purpose

• Your Massachusetts LLC should contain the words ”limited liability company”, ”limited company”, or the abbreviation ”L.L.C.”, ”L.C.”, ”LLC” or ”LC”.
• A corporate name in Massachusetts must contain the word “corporation”, “incorporated”, “company” or “limited”, or the abbreviations “corp.”, “inc.” or “ltd.”.

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Massachusetts.

How to form an LLC in Massachusetts

• File the “Certificate of Organization” with the Massachusetts Secretary of the Commonwealth.
• Once the certificate is filed and approved you will then need to properly organize your Massachusetts LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.

How to Incorporate in Massachusetts

• File the “Articles of Organization” with the Massachusetts Secretary of the Commonwealth.
• Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

NOTE: When registering a new company the Secretary of the Commonwealth of Massachusetts can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.

TIP: Check our order form to see how long Massachusetts is currently taking to process regular and expedited orders.

How to File a DBA in Massachusetts

A Massachusetts DBA is filed with your city clerk’s office. You’ll want to contact your local City Clerk to find out exactly what forms to submit and what their submission process is. You can find the local county recorder’s office by searching “YOURCITY city clerk”.

• Obtain and file the Business Certificate with your town or city to register your DBA. NOTE: Some cities will let you search the name and register online. Others require the form to be notarized.

Optional considerations when registering a Massachusetts business

Hire a professional Registered Agent. Many business owners list their home or business address on the Certificate or Articles of Organization. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).

Ready to register a business in Massachusetts?

We specialize in registering businesses in Massachusetts.

Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, it’s required). However, if you are a DBA and don’t obtain an EIN you will be required to use your Social Security Number on many documents so it’s highly recommended that you obtain the EIN to prevent identity theft. You can apply online with the IRS or via IRS Form SS-4.

TIP: We can obtain your EIN for you if you we form your company.

Step 5: Open Company Accounts: Bank and Credit Cards

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Obtain Business Licenses and Permits

Now that you’ve registered your business name you may need to obtain a business license for your company – this authorizes your company to do business in your city or county depending on the type of service you offer. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We can help you identify the necessary forms to obtain your business license.

Step 7: Annual and Ongoing Requirements

DBA: Your Business Certificate is valid for 4 years at which point you’ll need to renew it with your town or city clerk.

LLC: Massachusetts LLCs are required to file an annual report every year on or before the anniversary date of the filing of the original Certificate of Organization. The filing fee is $520.

Corporation: Corporations in Massachusetts must file an annual report each year within two and a half months of the close of the corporation’s fiscal year end. The filing fee is $109.

Ready to start a business in Massachusetts?

• Our Massachusetts filing services will help you get started as quickly as possible.

Important Massachusetts Contacts

Massachusetts Secretary of the Commonwealth

Corporations Division (for Corporation and LLC filings)
McCormack Building
One Ashburton Place, 17th floor
Boston, MA 02108
Phone: 617-727-9640

Massachusetts Taxation Department

• Massachusetts Department of Revenue

Massachusetts Labor and Employment Department

• Executive Office of Labor and Workforce Development

Massachusetts Startup Resources

1. Small Business Administration (SBA)

• Boston District Office

2. SCORE Massachusetts

• The SCORE Northeast Massachusetts Chapter serves Essex, Northern Middlesex and parts of Northern Suffolk counties.
• The Western Massachusetts Chapter
• Southeast Massachusetts SCORE

3. Massachusetts Legal Statutes

• Massachusetts Business Corporation Act – applies to all Massachusetts business corporations.
• Massachusetts Limited Liability Company Act. – the specific act that applies to Massachusetts LLC’s.
• Overview of Massachusetts Business Laws – an overview of Massachusetts business laws and regulations including taxes, new hire and wage regulations.

4. Massachusetts Chambers of Commerce

• Massachusetts Chamber of Commerce
• Cambridge Chamber of Commerce, MA
• Greater Boston Chamber of Commerce

5. MassEcon

• MassEcon champions Massachusetts as the best place to start, grow, or locate a business.  

6. Angel.co Massachusetts Startups

• A list of Massachusetts Startups and Massachusetts angel investors registered with Angel.co. Good research resource.

7. Massachusetts Business News

• Boston Business Journal
• Business – The Boston Globe

8. Massachusetts Office of Business Development (MOBD)

9. Massachusetts Small Business Development Center (MSBDC)

10. Massachusetts Green Business

• The Sustainable Business Leader Program (SBLP)
• Green Startups