How to Form a Limited Liability Company in Massachusetts

Start an LLC in Massachusetts in 5 Simple Steps.

Step 1: Give your Massachusetts LLC a name.
Step 2: Select a Resident Agent
Step 3: Submit the Certificate of Organization; Step 4: Draft an Operating Agreement
Step 5: Obtain an EIN

It is simple to form an LLC in Massachusetts.

To establish a Massachusetts LLC, you must first submit a Certificate of Organization with the Massachusetts Secretary of the Commonwealth, which costs $500. You may apply both online and by mail. The Certificate of Organization is the formal legal document that establishes your Massachusetts Limited Liability Company.

STEP 1: In Massachusetts, name your LLC.

The first and most significant step in forming an LLC in Massachusetts is deciding on a name. Make sure your name conforms with Massachusetts naming regulations and is readily searched by prospective customers.

1. Follow the naming conventions:

The word “limited liability corporation” or one of its acronyms must be in your name (LLC, LC, L.L.C., or L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
Your name must be unique among Massachusetts limited liability companies, corporations, and limited partnerships.

2. Does the name exist in Massachusetts? Check the Secretary of the Commonwealth’s website for a Massachusetts LLC search to ensure that the name you choose isn’t already in use.

STEP 2: Select a Massachusetts Resident Agent

For your LLC, you must select a Massachusetts resident agent. In other states, a resident agent is known as a registered agent.

What exactly is a resident agent? A resident agent is a person or corporate entity that receives vital tax forms, legal papers, lawsuit notices, and official government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who may work as a resident agent? A resident agent must be a Massachusetts resident or a firm, such as a registered agent service, that is permitted to do business in Massachusetts. You may choose someone from your organization, even yourself.

STEP 3: Submit the Massachusetts Limited Liability Company Certificate of Organization.

To form an LLC in Massachusetts, you must submit a Certificate of Organization to the Secretary of the Commonwealth. You may submit your application online, via mail, fax, or in person.

STEP 4: Draft a Massachusetts Limited Liability Company Operating Agreement.

An operating agreement is not essential for a Massachusetts LLC, but it is a good idea to have one.

What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.

Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.

STEP 5: Obtain a Massachusetts EIN.

What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security Number.

An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).

Why do I need an EIN? An EIN is necessary in order to:

Establish a business bank account.
Filing and managing federal and state income taxes
Employ people

What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.

Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.