How to form an LLC in Massachusetts
Massachusetts is an excellent place to form a new LLC, with a high business survival rate
and some of the best access to funding in the country.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own Limited Liability
Company in the state of Massachusetts.
There are two ways to form an LLC in Massachusetts: You can form one yourself, or you can hire
a service to do it for you.
Let’s start by looking at the five basic requirements to form an LLC in Massachusetts
on your own:
1. Name your LLC.
You’ll need to choose a company name that complies with Massachusetts naming requirements,
and do a name search on the Secretary of the Commonwealth’s website to make sure the
name isn’t already taken.
You should go ahead and register the URL for your business website and email as well.
2. Choose a resident agent.
Massachusetts requires that you nominate a resident agent - more commonly known as a
registered agent - for your LLC, who is your business’ point of contact with the state.
The resident agent can be an individual within the company including yourself, or you can
hire a professional service authorized to do business in Massachusetts.
3. Obtain an EIN.
You’ll need to get an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number, your EIN is like a social security
number for your LLC and is important for taxes and banking.
EINs are free of charge, and can be obtained from the IRS online or through the mail.
4. File the Certificate of Organization.
To register your Massachusetts LLC, you will need to file the Certificate of Organization
with the State of Massachusetts.
This can be done online, or by mail.
You'll need to state whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations, where everyone is involved in day-to-day operations.
The second option is manager-managed, where individuals are appointed to manage the LLC.
This is appropriate for larger organizations, where not everyone is involved in the day-to-day
affairs of the business.
5. Create an Operating Agreement.
You should also create an operating agreement to establish ownership terms, member roles,
and operating procedures.
This legal document ensures that all business owners are on the same page and reduces the
risk of future conflict.
And with that, you will have formed a Massachusetts LLC on your own.
Option 2.
Hire a Professional Service
The second way to create a Massachusetts LLC is to hire a professional service to create
your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for
the LLC will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro:
A hired registered agent helps with getting your reports filed on time, helps you stay
organized by keeping your business mail separate, and is available at all regular business hours
to accept official mail and legal papers on your LLC’s behalf.
A final and important additional benefit of using a service is privacy: a professional
service will provide a level of privacy by withholding your personal name and home address
from the LLC’s contact information.
There are many reasons you might not want your personal information easily accessible
and associated with your business. Hiring a professional LLC formation service is an
easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in Massachusetts,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below to research the top 5 professional formation
services, or get more information on how to form a Massachusetts LLC on your own.
We offer a host of free templates and tools to help accelerate your small business, from
operating agreements to business plans- all free of charge.
Visit us at HowtostartanLLC.com