![]() Federal Self-Employment TaxĪs the owner of a Massachusetts LLC with a business bank account and operating agreement, you will also be responsible for the federal self-employment tax. You may want to keep these funds in a separate bank account to make things easier for your personal assets and the resident agent who might help you manage them. When you create a Massachusetts LLC, you will have to start charging sales tax in your stores and on your business website. That means this is the rate you’ll pay regardless of whether you earn the most money in your Massachusetts LLC business bank account or the least. The state of Massachusetts charges a flat-rate income tax of 5.05%. With that in mind, and acknowledging that this isn’t legal or tax advice, here are some of the taxes that you could pay after setting up an LLC in Massachusetts. Your taxes can vary quite a bit while running one of these companies based on your LLC’s certificate of organization, whether you hire employees, and even your LLC membership interest. You may also have to pay a filing fee if you submit to the Secretary of the Commonwealth outside of the standard LLC formation service process. These can cost between $50 and $350, depending on the type of business you’re running. You may also need a business certificate or license to complete the LLC formation process and get your limited liability company up and running. You will submit this payment with your operating agreement and certificate of the organization while first registering with the Massachusetts Secretary of the Commonwealth. The cost of creating a foreign LLC in this state is $500 as well. Registered agent services can vary in price from around $100 to $300 annually Cost to Form a Foreign LLC in Massachusetts Or you can look into hiring a registered agent service to accept legal documents on your behalf. You can be your own registered agent for free. You will also need a Massachusetts registered agent. This means your Massachusetts LLC will pay at least $500 per year to keep its corporation’s division active. In addition to the formation process fees for Massachusetts, you will also have to pay $500 for annual reports each year to stay in good standing. ![]() You may be able to pay an extra expedited service fee with your comprehensive operating agreement to speed up the process of reviewing your operating agreements after you file online. So it’s at least worth considering whether your LLC members would execute documents filed elsewhere. These LLC costs are quite a bit more than what you’d pay to form an LLC in many other states. The baseline cost of creating a limited company in Massachusetts is $500. Keep reading to learn all of the service fees and the state filing fees that you may need to pay during your LLC’s formation. That being said, we’ll break all of the possible costs down for you in this section. The cost to form an LLC with the Massachusetts Department of Corporations Division can vary based on the kind of business you run and how that impacts which Massachusetts certificate of organization you need. We’ll cover both of these options in more depth in a later section. This may be cheaper than using an LLC business, but will also take up more of your time. ![]() Or you could submit all of the required Massachusetts business documents to the Massachusetts Secretary of the Commonwealth yourself. They file a certificate of organization for Massachusetts LLCs and complete all other paperwork to remain in good standing with the Massachusetts Secretary of the Commonwealth. You can use a Massachusetts LLC formation service that may also serve as a registered agent service. ![]() In order to use this business type and form an LLC, you need to submit a variety of legal documents and government correspondence to the principal office of the Massachusetts Secretary of the Commonwealth. What Is an LLC in Massachusetts?Īn LLC in Massachusetts is a type of business structure that small businesses can use, just like an S corp and a sole proprietorship. So, without further delay, let’s get into it. It breaks down every component to tell you exactly how much you would need to spend to complete your operating agreement, set up a business bank account, and create your new Massachusetts LLC. That’s why we’ve put together this article. But you may be wondering what the total Massachusetts LLC cost is if you want to create this type of business entity. Creating a Massachusetts LLC can be a great way to enjoy enhanced liability protection, a better tax situation, and more flexibility with your manager-managed LLC. ![]()
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