How to Start a Business in Massachusetts

Introduction

If you’re thinking about starting a business in Massachusetts, then you’re probably excited to get started and make money. But before you can start making money, you need to figure out how to keep track of your finances, how much inventory you’ll need, and how much time and energy it will take to run your new venture effectively.

Determine your Business Structure

Next, you’ll need to decide what sort of business structure you want your new company to have. In Massachusetts, there are a number of different options available:

• Sole proprietorship
• Partnership
• Corporation (known as a C corporation)
• Limited liability company (LLC), which is not technically a separate legal entity but rather a type of corporation that provides limited liability protection and pass-through taxation like an S corporation or partnership

Register your Business Name

Register your business name. You must register your business name before you can open for business in Massachusetts. To do this, file a certificate of formation (a standard filing) with the Secretary of State’s Office. The form can be downloaded online or obtained at any town or city clerk’s office.

Get an EIN

The first thing you need to do is get an EIN. An EIN is a unique nine-digit number that’s assigned by the IRS and used to identify your business for tax purposes. It’s needed for many legal and financial transactions, and it can be obtained online in minutes.

Register for Massachusetts Tax Accounts

Registering for a tax account is the first step in getting your business set up to pay taxes. You’ll need to register with the Massachusetts Department of Revenue, which requires you to submit an application along with copies of your articles of organization and federal employer identification number (EIN).

Organizing Requirements

Organizing your business is the first step to starting. You’ll need to set up a corporation, limited liability company (LLC), partnership, or sole proprietorship before you can legally do business in Massachusetts.

Organizing your business means forming it into an entity that will be recognized by state and federal governments as separate from its owners or members, and that has its own legal rights and responsibilities.

With the exception of LLCs, organizing is usually done by filing articles of incorporation with the Secretary of State’s office. An attorney can help you with this process if needed. The other three types of organizations must file several documents with their local city or town clerk’s office instead: Articles of Organization for corporations; Certificate of Formation for LLCs; Declaration of Partnership for partnerships; and Articles of Association for charitable nonprofits

Register with the State

Registering with the state is a requirement in order to open your doors. You can find out what you need to register with by going to the Massachusetts Secretary of State website and clicking on the “Business Services” button at the top of their homepage. Alternatively, if you’d like more information about how this process works, visit our How To Start A Business In Massachusetts page for additional details.

The cost of registering your business will depend on its type; however, this process generally costs between $100 and $200 per year (most small businesses pay around $150). If you don’t register with the state prior to opening up shop—or if you fail to update your registration when necessary—it could result in substantial penalties which could include fines or even jail time!

Get a Business License and Permits

In addition to registering your business with the state, you’ll also need to obtain a license from your local municipality. This will allow them to collect taxes on any goods or services that you provide within their jurisdiction and help ensure that everyone is playing by the same rules when it comes to doing business in Massachusetts. If you plan on selling food or alcohol, you must apply for a license even if you’re only planning on offering take-out orders; however, there are some exemptions provided by law (such as catering).

Takeaway

You will need to have all the paperwork in order before you start your small business in Massachusetts. You’ll need a business license, tax accounts and permits. Make sure to register for a business license and tax accounts online, as well as register for permits in person at the Department of Revenue or your city or town hall.

Conclusion

Starting a business in Massachusetts is a big decision, and it’s important to make sure you have all the right paperwork in order before starting. If you need help with filing taxes or registering your company with the state, contact a professional who can walk you through each step of the process.