Massachusetts LLC Cost: Full Fee Breakdown (2026)

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

It costs $500 to file the Certificate of Organization with the Secretary of the Commonwealth, or $520 if you file online or by fax (a $20 expedited charge). That is the only mandatory state charge to create the LLC. A federal EIN from the IRS is free.

Q: What is the annual cost of a Massachusetts LLC?

The main recurring cost is the annual report fee of $500 ($520 online or by fax), due on or before the anniversary of your formation date each year. Massachusetts LLCs have no separate franchise tax, so most standard LLCs pay only this annual report fee to the state.

Q: Why is a Massachusetts LLC so expensive?

Massachusetts sets one of the highest LLC filing fees in the country: $500 to form and $500 each year for the annual report. The fees are fixed by statute under M.G.L. c.156C, not by any filing service, and they are the same whether the LLC has one member or many.

Q: Is a Massachusetts EIN free?

Yes. A federal Employer Identification Number is issued free of charge directly by the IRS. Registering your business for state taxes through MassTaxConnect with the Department of Revenue is also free; you never pay a government fee for either registration.

Q: What does it cost to dissolve a Massachusetts LLC?

Filing a Certificate of Cancellation to dissolve a Massachusetts LLC costs $100, paid to the Secretary of the Commonwealth (or $120 online or by fax). Filing a certificate of amendment also costs $100, and reinstating an administratively dissolved LLC costs $100.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

It costs $500 to form a Massachusetts LLC by filing a Certificate of Organization with the Secretary of the Commonwealth, or $520 if you file online or by fax. There are no other mandatory state charges to create the LLC, but every Massachusetts LLC then pays a $500 annual report fee each year, and a federal EIN from the IRS is free.

Quick Answer

Formation fee: $500 (2026); $520 filed online or by fax
Agency: Secretary of the Commonwealth - Corporations Division
Annual report: $500 per year ($520 online/fax), due by the formation anniversary
Dissolution: $100 Certificate of Cancellation ($120 online/fax)
EIN: $0 - free from the IRS
Franchise tax: None on a standard pass-through LLC

Formation Cost: $500 ($520 Online)

The one-time cost to create a Massachusetts LLC is $500, the filing fee for the Certificate of Organization under M.G.L. c.156C, §12. If you file online through the Corporations Division portal or by fax, Massachusetts adds a $20 expedited-service charge, so the effective cost by those methods is $520. Mailed paper filings pay the flat $500. This single fee is the only mandatory state charge to bring the LLC into existence; you pay it to the Secretary of the Commonwealth, Corporations Division. The certificate lists the LLC's name, its Massachusetts records office, the general character of its business, and its resident agent. For the full step-by-step, see how to form an LLC in Massachusetts and the national how to form an LLC guide.

Full Massachusetts LLC Fee Table (2026)

The table below lists the state fees a Massachusetts LLC is most likely to encounter, each set by the Corporations Division, the Department of Revenue, or the IRS. Amounts are effective for 2026 and are the government's own fees - not charges from any filing service. Where a fee changes with the filing method, both the paper and the online/fax amount are shown.

Item	Statute / agency	Fee (2026)
Certificate of Organization (create the LLC)	M.G.L. c.156C §12	$500 ($520 online/fax)
Annual report	M.G.L. c.156C §12	$500 ($520 online/fax)
Certificate of amendment	M.G.L. c.156C §13	$100
Change of resident agent / office	M.G.L. c.156C §5	$25 (paper/fax); $0 electronic
Certificate of cancellation (dissolve)	M.G.L. c.156C §14	$100 ($120 online/fax)
Application for reinstatement	Corporations Division	$100
Certificate of good standing / legal existence	Corporations Division	$25 (confirm on fee schedule)
Reservation of name	Corporations Division	$30 (confirm on fee schedule)
State tax registration (MassTaxConnect)	Dept. of Revenue	$0 (free)
Federal EIN	IRS Form SS-4	$0 (free)

Because a handful of optional fees (certified copies, good-standing certificates, and name reservation) are updated periodically, confirm the exact amount on the Corporations Division fee schedule before you order one. The two figures that dominate the real cost of a Massachusetts LLC are the $500 formation fee and the recurring $500 annual report.

Annual Report: $500 Every Year

After formation, the largest recurring cost of keeping a Massachusetts LLC active is the annual report fee of $500 ($520 online or by fax), filed with the Corporations Division under M.G.L. c.156C, §12. Unlike most states, which charge a token annual fee, Massachusetts charges the same amount to renew as it does to form. The report is due on or before the anniversary of the date your Certificate of Organization was filed, and it restates the same information as the certificate, updated for any changes. This is a compliance filing, not a tax return. Missing it can push the LLC out of good standing and, eventually, into administrative dissolution. For due dates and consequences, see Massachusetts annual report.

No Franchise Tax on a Standard LLC

A standard, pass-through Massachusetts LLC pays no separate state franchise tax. The $500 annual report is the LLC's main fixed state obligation. That changes only if you elect to be taxed as a corporation: an LLC taxed as a corporation owes the Massachusetts corporate excise, which carries a minimum excise of $456 per year even in a loss year, plus tax on income and net worth. By default, though, members simply report LLC profits on the 5.0% Massachusetts personal income tax and there is no entity-level franchise fee. For how the different classifications are taxed, see Massachusetts LLC tax filing and S-corp vs LLC.

Resident Agent Cost

Every Massachusetts LLC must name a resident agent with a Massachusetts address for service of process. There is no separate state fee to name your agent at formation - it is included in the Certificate of Organization. If you later switch agents, filing a Statement of Change of Resident Agent or Resident Office costs $25 by paper or fax and is free when filed electronically. You may act as your own resident agent at no cost if you live in Massachusetts, or hire a commercial resident agent service, whose annual fees are set by the provider and are not a government charge. See Massachusetts resident agent requirements and do I need a registered agent.

What Is Free: EIN and Tax Registration

Two important registrations cost nothing. A federal EIN is issued free by the IRS - you never pay the IRS for one - and it is needed to open a business bank account, hire employees, and file taxes. Likewise, registering your business for Massachusetts taxes through MassTaxConnect with the Department of Revenue is free, including registering to collect the 6.25% sales and use tax. Be wary of third-party services that charge $50 to $300 to "get" an EIN for you, since the IRS issues it directly at no cost. See how to get an EIN for an LLC and single-member LLC tax basics.

Dissolution and Amendment Costs

Closing a Massachusetts LLC has its own fees. To dissolve, you file a Certificate of Cancellation under M.G.L. c.156C, §14 for $100 ($120 online or by fax). Amending your Certificate of Organization - for example, to change the LLC's name or business purpose - costs $100 under §13. If the state administratively dissolves your LLC for missed annual reports, reinstatement costs $100 plus all the back annual report fees you skipped, which is why letting the LLC lapse is far more expensive than paying on time. For the full wind-up process, see how to dissolve an LLC in Massachusetts, the national cost to dissolve an LLC, and what happens if you don't dissolve an LLC.

Typical First-Year and Ongoing Cost

Putting it together, a typical Massachusetts LLC spends $500 to $520 in year one to form (plus $0 for an EIN and $0 for tax registration), then $500 to $520 each year for the annual report. If you hire a commercial resident agent, add that provider's annual fee; if you operate under a trade name, add a local business certificate (DBA) fee, which is set by your city or town clerk, not the state. Compared with neighboring states, Massachusetts is expensive: its $500 formation and $500 annual fees are among the highest anywhere. For a national comparison, see how much does an LLC cost and the Massachusetts business license overview.

Costs People Overlook

Beyond the headline fees, a few costs surprise new Massachusetts LLC owners. First, the $500 annual report is not optional and does not decrease for a small or inactive LLC - a dormant Massachusetts LLC still owes $500 a year until it is formally cancelled. Second, if you fall into administrative dissolution, reinstatement requires paying every missed annual report plus the $100 reinstatement fee, so a lapse compounds quickly. Third, an LLC that elects corporate taxation takes on the $456 minimum corporate excise on top of the annual report. Fourth, local business licenses and a DBA filed with the town clerk carry their own small fees that vary by municipality. Finally, federal income tax still applies to your LLC's profits - see business tax, how to file business taxes, and self-employment tax for those obligations.

Frequently Asked Questions

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

$500 to file the Certificate of Organization with the Secretary of the Commonwealth, or $520 online or by fax. That is the only mandatory state charge to create the LLC, and a federal EIN is free. See how to form an LLC in Massachusetts.

What is the annual cost of a Massachusetts LLC?

The annual report fee of $500 ($520 online or by fax), due on or before the anniversary of your formation date. There is no separate franchise tax on a standard pass-through LLC.

Why is a Massachusetts LLC so expensive?

The $500 formation and $500 annual fees are fixed by statute under M.G.L. c.156C. They are the same regardless of the LLC's size or income, which makes Massachusetts one of the costliest states for LLCs.

Is a Massachusetts EIN free?

Yes. The IRS issues an EIN free of charge, and registering for state taxes through MassTaxConnect is also free.

What does it cost to dissolve a Massachusetts LLC?

Filing a Certificate of Cancellation costs $100 ($120 online or by fax). A certificate of amendment also costs $100, and reinstating an administratively dissolved LLC costs $100 plus back annual reports.

Sources

Secretary of the Commonwealth - Corporations Division Filing Fees ($500 certificate; $500 annual report; $100 amendment/cancellation; $25 change of agent; $20 online/fax charge).
Secretary of the Commonwealth - Limited Liability Company Information (Certificate of Organization, annual report, resident agent).
Secretary of the Commonwealth - Corporations Division Fee Schedule (PDF) (good-standing, name reservation, and copy fees).
Secretary of the Commonwealth - Certificate of Organization form (PDF).
Massachusetts General Laws - c.156C §12, Certificate of Organization and annual report.
Massachusetts General Laws - c.156C §13, Amendment of certificate of organization.
Massachusetts General Laws - c.156C §14, Certificate of cancellation.
Massachusetts General Laws - c.156C §5, Resident agent for service of process.
Massachusetts DOR - Massachusetts Tax Rates (5.0% income; 6.25% sales; $456 minimum corporate excise).
Massachusetts DOR - Register Your Business with MassTaxConnect (free tax registration).
IRS - Get an Employer Identification Number (free EIN).
IRS - Limited Liability Company (LLC) (federal default classification).
Cornell LII - 26 CFR 301.7701-3, entity classification (check-the-box).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Fees change; verify current amounts with the Massachusetts Secretary of the Commonwealth, Corporations Division, before filing.