How to Start a Massachusetts LLC in 2026: $500 Fee & Requirements

Formation Fee	$500
Annual Report Fee	$500
Annual Report Due	Anniversary date
Registered Agent Required	Yes (MA address)
State Income Tax	5% (plus 4% surtax on $1M+)
Privacy Protection	Low
Official Filing Website	MA Secretary of the Commonwealth

Formation Fee

$500

Annual Report Fee

$500

Annual Report Due

Anniversary date

Registered Agent Required

Yes (MA address)

State Income Tax

5% (plus 4% surtax on $1M+)

Privacy Protection

Low

Official Filing Website

MA Secretary of the Commonwealth

1. Massachusetts LLC Overview

If you operate a business in Massachusetts, you generally must form your LLC there. The state offers a massive, highly-educated workforce, particularly in tech and healthcare, but it comes with a premium price tag.

Highest state fees — $500 to form, $500 every year
Flat income tax — 5% rate on personal income (plus a surtax on high earners)
No franchise tax — Standard LLCs don't pay a corporate franchise tax

The Most Expensive LLC in America

Before forming an LLC in Massachusetts, ensure your business revenue can support a mandatory $500 state fee every single year. For freelancers or side-hustles, a sole proprietorship might be a more cost-effective choice until revenue increases.

2. Massachusetts LLC Requirements

Name must contain "Limited Liability Company," "L.L.C.," or "LLC"
Appoint a resident agent with a Massachusetts physical address
File a Certificate of Organization with the Secretary of the Commonwealth ($500)
File an Annual Report by your anniversary date each year ($500)

3. Massachusetts LLC Costs and Fees (2026)

Cost Item	Amount	Notes
Certificate of Organization	$500	One-time state filing fee
Annual Report	$500/year	Due on anniversary date
Resident Agent	$50–$150/year	Required MA physical address
EIN	Free	Apply at IRS.gov
Operating Agreement	$0–$1,000	Recommended, not legally required

4. How to Start a Massachusetts LLC (Step by Step)

1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
2 Appoint a registered agent with a Massachusetts physical address
3 File the Certificate of Organization with the MA Secretary of the Commonwealth ($500)
4 Obtain an EIN from the IRS (free at IRS.gov)
5 Draft an Operating Agreement (not filed, but legally binding)
6 File Annual Report by your formation anniversary date each year ($500)
7 Open a business bank account

5. Massachusetts Annual Report

The annual report is the primary way Massachusetts LLCs maintain their active status.

Due Date: The exact anniversary date of the LLC's formation.
Fee: $500.
Filing: Filed online via the Secretary of the Commonwealth's Corporations Division portal.

6. Massachusetts LLC Taxes (2026)

State income tax — 5% flat rate on pass-through profits. Note: There is an additional 4% surtax on personal income over $1 million.
Federal income tax — Pass-through to personal return
Self-employment tax — 15.3% on net earnings
Sales tax — 6.25% state rate (localities do not charge additional sales tax)

7. Best For / Not Best For

Best For

Entrepreneurs living and operating in Massachusetts
Well-funded tech or biotech startups based in the Boston area

Not Best For

Cost-sensitive founders: MA has the most expensive annual LLC fees in the country
Out-of-state owners without Massachusetts nexus

Massachusetts LLC FAQs

Why is a Massachusetts LLC so expensive?

Massachusetts has historically set high fees for limited liability companies. The initial formation fee is $500, and the annual report fee is also $500. This makes it the most expensive state in the U.S. for ongoing LLC maintenance fees.

When is the Massachusetts LLC annual report due?

The $500 annual report is due every year on the exact anniversary date of your LLC's formation. If you formed the LLC on October 14, your report is due by October 14 every year.

What is the Massachusetts state income tax for LLCs?

Massachusetts has a flat personal income tax rate of 5%. However, there is an additional 4% "millionaire's surtax" on personal income exceeding $1 million. Since an LLC is a pass-through entity, profits flow to the members who pay these rates on their personal returns.

Does Massachusetts require an operating agreement?

No, Massachusetts law does not require an operating agreement to be filed with the state. However, it is highly recommended to have a written agreement to govern the internal operations of your business.

How to Start a Massachusetts LLC in 2026: Costs, Fees & Requirements

Massachusetts LLC Quick Facts (2026)