How much does it cost to start an LLC in Massachusetts in 2026?

Forming an LLC in Massachusetts requires a one-time initial filing fee of $500 paid to the Massachusetts Corporations Division. When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $539.

What are the annual recurring fees for a Massachusetts LLC?

Massachusetts charges an annual report fee of $500 filed on a annual basis (due Anniversary date annually). There is no state franchise tax on standard LLCs in Massachusetts.

What is the true 5-year cost of maintaining a Massachusetts LLC?

Over 5 years, the true cost of a Massachusetts LLC is approximately $2,695. This includes initial formation ($500), recurring annual reports ($500), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Massachusetts?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Massachusetts, you must register as a Foreign LLC in Massachusetts. In Massachusetts, the foreign qualification filing fee is $500 plus ongoing maintenance of $500/year, often resulting in double fees.

Verified 2026 Statutory Guide

Massachusetts LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $500. Ongoing annual report fee: $500 (annual). No state franchise tax.

Compare Massachusetts vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Massachusetts costs $500 for the one-time Articles of Organization filing fee, plus $500/yr in recurring annual report fees. Over 5 years, maintaining a Massachusetts LLC costs an estimated $2,695.

Initial State Filing$500One-time payment

Annual Report$500Due Anniversary date annually

Franchise Tax$0none

Registered Agent$39–$125Annual service

Statutory Department: Massachusetts Corporations Division

Verify on State Website (.gov)

Massachusetts LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $500

Approval speed: 1-2 business days online•Public Privacy: Public

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Massachusetts Tax Rule: No franchise tax, but annual report fee is the highest baseline in the nation ($500/year).

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Standard Processing (Included)

Massachusetts already processes online filings within 1-3 business days.

Deciding where to incorporate?

Compare Massachusetts vs Wyoming & Delaware →

Year 1 Setup Cost

$539

Initial formation fee ($500) + registered agent

Annual Maintenance

$539 /yr avg

Annual report ($500/yr)

5-Year True CostAll Hidden Fees Included

$2,695(~$45/mo)

Total 5-year statutory commitment to maintain legal compliance in Massachusetts.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($539)

$539

Year 1Formation

$539

Year 2Renewal

$539

Year 3Renewal

$539

Year 4Renewal

$539

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $539

State Filing$500

Franchise Tax$0

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$500

19% of 5-yr budget

Total Franchise Taxes

0% of 5-yr budget

Annual / Biennial Reports

$2,000

74% of 5-yr budget

Registered Agent Service

$195

7% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Founder Cost-Reduction Tip

Save on your Massachusetts filing fees & protect your personal privacy

Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.

Free Home Address RedactionInstant Massachusetts Compliance AlertsAnnual Report Reminders

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Open a zero-fee business checking account for your Massachusetts LLC

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Massachusetts LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Massachusetts Corporations Division.

Official State Portal (.gov)

Annual Report Due DateAnniversary date annuallyFrequency: ANNUAL

Normal Turnaround1-2 business days onlineExpedited: Fast / Included

Public Record PrivacyPublicRegistered agent protects personal address

State Personal Income Tax5% flat tax + 4% surtax over $1MLLC pass-through profits flow to owners

Massachusetts Franchise Tax & Business Privilege Tax Rules

No franchise tax, but annual report fee is the highest baseline in the nation ($500/year).

Advantages of a Massachusetts LLC

Premier biotech, medical, higher-ed, and venture capital ecosystem

Drawbacks & Hidden Costs

Nation's highest formation fee ($500) and annual report ($500/yr) = $2,500 over 5 years in baseline state fees alone

Founder Pro-Tip for Massachusetts

Budget at least $500 every single year for Massachusetts compliance.

Step-by-Step Massachusetts LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Massachusetts Corporations Division registry.

Appoint a Massachusetts Registered Agent

Must have a physical street address in Massachusetts (no P.O. boxes) to receive official service of process during regular business hours.

File Articles of Organization ($500 State Fee)

Submit electronically to the Massachusetts Corporations Division. Approval is typically granted within 1-2 business days online.

Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

Maintain Ongoing Legal Good Standing (Anniversary date annually)

Submit the annual report with the $500 fee to prevent automatic forfeiture or late fee assessments.

Compare Massachusetts with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Filing: $100

Filing: $110

Filing: $300

Filing: $70