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Massachusetts · MA

Massachusetts LLC Formation Cost 2026

Filing fee $500 · Annual $500 · Privacy 4/10 · Banking 9/10

The numbers

Initial state filing fee$500
Annual report (annual)$500
Franchise / privilege taxNone for pass-through LLCs
State personal income tax (top)9%
State corporate income tax (top)8%
Publication required?No
Standard processing time7 business days
Privacy score4/10
Banking accessibility9/10
5-year total cost$3,250

Why people choose Massachusetts

  • Strong VC ecosystem

Trade-offs to know

  • Highest combined filing + annual fee ($1,000)
  • 9% top income tax (millionaires tax)

Who Massachusetts is best for

  • Boston biotech/tech

Filing $500 + annual $500 is among the most expensive in the US.

Authoritative sources

Massachusetts vs the alternatives

StateFilingRecurringState taxPrivacy
Massachusetts$500$500/yr9%4/10
Wyoming$100$62/yr0%9/10
Delaware$110$300/yr6.6%7/10

How to form an LLC in Massachusetts (general steps)

  1. Choose a unique name ending in "LLC" or "Limited Liability Company". Check name availability with the Massachusetts Secretary of State.
  2. Appoint a registered agent with a physical Massachusetts address.
  3. File Articles of Organization ($500) with the Massachusetts Secretary of State.
  4. Draft an Operating Agreement — most states do not require filing but strongly recommend having one.
  5. Obtain an EIN from the IRS (free online with SSN/ITIN).
  6. File the FinCEN BOI report within 90 days of formation (federal requirement).
  7. File the annual report ($500) by the deadline to keep the LLC in good standing.

Other commonly compared states

Frequently asked questions

How much does it cost to form an LLC in Massachusetts?

The state filing fee is $500. An annual report costs $500. Plus a registered agent (typically $25-$150/year).

Does Massachusetts have a state income tax on LLCs?

Massachusetts's top personal income tax rate is 9%. Pass-through LLC profits flow to your personal return at this rate.

What is the annual cost of maintaining a Massachusetts LLC?

Excluding the first-year filing fee, the recurring cost is $550 (annual report + franchise minimum + $50 registered agent baseline). Five-year total ≈ $3,250.

Can a non-resident form an LLC in Massachusetts?

Yes. Non-US residents can form an LLC in any state. However, banking, payment processing, and EIN acquisition vary in difficulty. Massachusetts has strong banking accessibility (9/10). See our non-resident guide for the full process.

Is Massachusetts a good state for an anonymous LLC?

Massachusetts's privacy score is 4/10. Some member or manager information appears on public filings. For maximum privacy, Wyoming, New Mexico, and Nevada are common choices.

Deep-dive Massachusetts guides

Interactive cost calculator for Massachusetts

LLC Cost Calculator

Estimate the real cost of forming and maintaining an LLC across 51 US jurisdictions. Includes state filing, registered agent, annual report, franchise tax, and (where applicable) publication.

Year 1 breakdown — Massachusetts

State filing fee $500
Registered agent (yr 1) $50
Annual report fee $500
Franchise / privilege tax (minimum) $0
Year 1 total$1,050
Recurring (yr 2+)$550/yr
5-year total cost$3,250

Avg. $650 / year — compares to 5-yr baseline $3,250.

What this calculator does NOT include
  • Federal BOI report (free, but mandatory)
  • EIN application (free with SSN/ITIN; some services charge $50-$300)
  • Operating Agreement drafting
  • State-level business licenses (industry-specific)
  • Local city/county fees (varies by municipality)
  • Foreign LLC registration if operating outside formation state
  • Federal and state income tax on profits

Educational estimate only. Not legal or tax advice. Verify with a licensed CPA or attorney before filing.