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Massachusetts LLC
Tax Registration & Requirements
How to form an LLC in Massachusetts
This Quick Start Guide is a brief overview of how to form an LLC in Massachusetts.
Detailed Lessons:
5. EIN Number
6. Annual Report
7. Business License
8. Taxes ← you are here
Massachusetts LLC costs:
LLC formation cost: $500 by mail or $520 online (one-time fee)
Annual report: $500 by mail or $520 online (every year)
Need help?
Hire a company to form your Massachusetts LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(check out Northwest vs LegalZoom)
Note: Our tax lesson is not as step-by-step as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC in Massachusetts, and therefore, the information below is an overview, and not a comprehensive guide.
You will likely need to hire a tax professional to make sure you meet all your Massachusetts state and local tax obligations. We recommend using Thumbtack.
Do it yourself in Massachusetts
Overview of Massachusetts Taxes
https://www.mass.gov/service-details/limited-liability-companies-and-limited-liability-partnerships
Online Registration for Business Taxes
https://mtc.dor.state.ma.us/mtc/_/
Other Taxes
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Sales and use tax
- Limited liability entity tax
- Employer’s withholding tax
- Partnership and LLC tax
- Transient room tax
- Motor vehicle tax
- Consumer’s use tax
- Telecommunications tax
- Utility gross receipts license tax
- Tobacco tax
- Property tax
- Alcohol tax
- Fuel tax
- Local taxes
- And more
You can also contact the Massachusetts Department of Revenue directly for more information on the different taxes your LLC might have to pay:
Massachusetts Department of Revenue
617-887-6367
Contact page
Our Recommendation
Calculating your tax obligations in Massachusetts can be complicated and if done improperly can negatively impact your LLC.
We recommend that you get help from a tax professional once your LLC is formed. You can use Thumbtack or Yelp.
Hiring a tax professional will not only help you keep your Massachusetts LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.
References
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My partner and I filed for our certificate of organization for our LLC on 9/17/2017. We did not make a profit in 2017. Do we need to file federal or state taxes? If not, what forms do we need to file and when?
Thank you
Hi Diana, this will need to be a discussion with a local accountant. If the LLC didn’t earn income and is not writing off expenses, or claiming deductions or credits, you don’t have to file anything federally. That is assuming the LLC is taxed in its default status (LLC taxed as Sole Proprietorship or LLC taxed as Partnership). However, if the LLC is taxed as an S-Corporation or a C-Corporation, then you will have to file federally. Additionally, you may need to file at the state-level and the local-level for the LLC, even with no income or expenses (often called “informational” or “zeroed out” returns), but we don’t provide this level of granularity regarding states, counties, local municipalities, etc (far too many to cover and things vary widely among different types of businesses). Thanks for your understanding. Hope that helps!
Thank you for all of this!
You’re very welcome Elise!