Forming an LLC in Massachusetts
Forming an LLC in Massachusetts in 7 easy steps
- Start by giving your LLC a name. The name must contain an LLC identifier, such as “Ltd. Liability Co”, “LLC” or “L.L.C.”. If you for instance wish to call your company “Massachusetts Ice Cream” you can give it the formal name “Massachusetts Ice Cream LLC”. You are naturally not allowed to violate trademarks or pick a name that is already occupied by another LLC. According to Massachusetts state law, a disclaimer that clearly states “not practicing law” is required if the purpose contains anything with “judgment recovery” or “small claims court”.
- Hiring an attorney is not mandatory when forming an LLC in Massachusetts, but it can still be a good idea to pay an attorney to check your Operating Agreement. Faulty Operating Agreements are known to easily cause problems with the IRS for LLC’s and paying an attorney can save you a lot of money in the long run.
- During step three, the time has come to pay a visit to the Massachusetts State filing office where you will file the Articles of Organization and pay the filing fee. In Massachusetts, the minimum state filing fee is fairly high, $275.00. (For 30 business days.)
- An Organizational Meeting must now be arranged where the members (owners) of the LLC adopts the Operating Agreement.
- Your LLC can now apply for its own Federal Employer Identification Number (FEIN).
- Don’t forget to open up a company bank account to handle your transactions.
- Decide in which cities and counties you will be doing business and apply for any necessary local business licenses and permits.
Maintaining an LLC in Massachusetts
Massachusetts state law requires LLC’s to hand in the annual report within 2.5 months of the fiscal year end. The annual report fee is comparatively high in Massachusetts: $125.00.
