Form a Business in Massachusetts

What makes Massachusetts different

• The MA LLC vs Corp cost asymmetry is the single biggest customer surprise. LLC formation $500 + LLC Annual Report $500 = $1,000/year recurring. Profit Corp formation $275 + Corp Annual Report $125 = $400/year recurring. A Massachusetts LLC costs 2.5x…
• All checks payable to "Commonwealth of Massachusetts" (not "Secretary of State" or "Corporations Division"). Common rejection cause.
• Corp annual report has tiered late penalty: $125 timely, $150 if late, $100 if filed electronically (and timely). Customers get a $25 discount for filing electronically + on time. LLCs and LPs DO NOT get an electronic discount on Annual Report ($500 either way).…
• Corp formation fee is tiered by authorized shares. $275 minimum (up to 275,000 shares), +$100 per additional 100,000 shares. Wizard must prompt for authorized share count and compute.
• Foreign Corp registration is $400 (not $275). Higher than domestic Corp formation. LLC foreign registration is same as domestic ($500).
• Massachusetts has a corporate excise tax (8% on net income + $2.60 per $1,000 of taxable tangible property OR taxable net worth), minimum $456/year. Filed separately with MA Department of Revenue, NOT with SOS. Wizard must remind customers.
• Personal income tax 5% flat. Plus 4% surtax on income over $1M ("Millionaires Tax", passed 2022, in effect since 2023). Total top rate 9% on income over $1M.
• Annual Report due date is the anniversary of original filing (for Corp, LLC, LP). NOT a fixed calendar date like CT's Mar 31 or FL's May 1.