Starting a business in Massachusetts is simpler than you think. It just comprises a few processes, and in addition, it boasts a lot of benefits. Once a business is registered in Massachusetts, the owner will be able to qualify for several types of business incentive programs introduced by Federal, state, and other local agencies.
Another meaningful benefit of opening a business in Massachusetts is the rate of state taxes. Massachusetts has a moderately low personal income tax rate for the sheer population density. Also, Massachusetts is considered one of the most creative economies in the United States and is right at the top and counted amongst the prominent technology states.
In addition to enhanced credibility and brand protection incorporating a business in Massachusetts also establishes its perpetual existence.
How to register a Limited liability company in Massachusetts
Registering a business in Massachusetts is a quick and convenient process. It requires finalizing the following steps:
Choose a name for your Massachusetts LLC
The first step in registering an LLC in Massachusetts is choosing a suitable name.
Naming requirements for a Massachusetts LLC: under Massachusetts law, an LLC name must include the words limited liability company,” “limited company,” or the abbreviations “L.L.C.,” “L.C.,” “LLC,” or “LC.” The name may include the name of a member or manager of the LLC.
The LLC’s name should be deceptively identical to the names of other business entities already on register with the Secretary of the Commonwealth Corporations Division. Names may be searched for availability by checking the Massachusetts name database. A name can also be reserved for 60 days by filing an Application for Reservation of Name.
It’s recommended to choose a catchy name, that will perfectly translate what the business is about, and also be memorable.
Assign a resident agent in Massachusetts
Massachusetts employs all LLCs to have a resident agent. The agent will be named in the company Certificate of Organization. The registered agent may be an individual who lives in Massachusetts or a domestic or foreign corporation allowed to do business in Massachusetts. The registered agent must have a physical street address in Massachusetts. This person or entity must also give permission to be the LLC’s resident agent in the Certificate of Organization.
File the LLC Certificate of Organization
To create an LLC in Massachusetts, the owner has to file the Certificate of Organization with the Secretary of the Commonwealth. This can be done online, by mail, by fax, or in person.
Prepare an Operating Agreement
An LLC operating agreement is not imposed in Massachusetts but is highly recommended. This is a document that establishes how the LLC will be operated. It is not documented by the state. It sets out the rights and obligations of the members and managers, including how the LLC will be governed. In the absence of an operating agreement, state LLC law will dictate how your LLC operates.
Apply for an Employer Identification Number (EIN)
An EIN is also known as a Federal Tax Identification Number. This is a nine-digit number that acts like a Social Security number for a business. Having one enables the business owner to do several things, like getting a business bank account, paying taxes, and hiring employees. The owner can get an EIN by visiting the IRS website, by fax, or by mail. The owner should also register the company with the Massachusetts Department of Revenue’s MassTaxConnect website to pay taxes online.
Important steps to take after forming the LLC
Once the LLC is registered, there are a few key steps to take. These steps are important to the company and includes the following:
- Open a corporate bank account
Opening a separate business bank account makes it easier to track the company’s income and expenses. For the LLC, a separate bank account is essential to maintain liability protection.
- Acquire permits and licenses for your Massachusetts business
Although Massachusetts does not impose a general business license, the state expects specific professions or industries to obtain industry-specific business licenses or permits. New businesses can find license requirements on Massachusetts’ Department of Revenue site.
- Assess employee hiring compliance
To hire employees that will work for your LLC in Massachusetts, some guidelines must be followed and they include hiring only employees that are eligible to work in the US, reporting all new hires to the state of Massachusetts, offering workers’ compensation to all employees, etc.
- Getting business insurance
It’s also recommended to consider looking into getting business insurance for the LLC. By default, the LLC will come with personal liability protection. But, getting extra coverage with various types of business insurance can further secure the company’s well-being.
- File your Massachusetts LLC yearly report
The LLC is required to file a Massachusetts annual report with the Corporations Division. This report will be due on the anniversary date of the Certificate of Organization’s filing. This can be done online or by mail for a fee.
From company formation to compliance in Massachusetts, your Damalion expert can help out. Let’s go ahead and contact your Damalion expert now for your company formation in Massachusetts.
