General Guide to Company Incorporation in Massachusetts

Updated on Friday 09th February 2018

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Massachusetts is known as the Bay State or the Commonwealth of Massachusetts and it is the most populous state in the USA. With important exits to the Atlantic Ocean and with an excellent infrastructure, Massachusetts is an impresive business center which is placed in top preferences for opening companies of numerous foreign investors around the world. We have prepared a general guide to company incorporation in Massachusetts, but assistance for the entire process can be obtained from our team of company formation specialists in USA.

How to register an LLC in Massachusetts

Among the business entities available for both nationals and foreigners, the limited liability company has proven to be successful in a vast range of industries. An LLC in Massachusetts can be incorporated in a fast manner if the requirements imposed by the Secretary of the Commonwealth Corporations Division are observed. If you want to set up a business in USA, and particularly in Massachusetts, it is suggested to operate a name verification in this sense. Business persons have the possibility to reserve the chosen name for 60 days for a settled fee. The next step is to prepare the Articles of Association which must comprise the following information:

•    the name of the company;
•    the address of the business;
•    the name of the owners;
•    the board of managers;
•    the name of the registered agent;
•    the signatures of the owners.

The USA company formation is less bureaucratic, including Massachusetts, but for a proper understanding of the terms and conditions, you may address to our company incorporation agents in USA.

Information about the registered agent in Massachusetts

If you want to open a company in USA, make sure to consider the condition of appointing a registered agent for your business in Massachusetts. This can be an individual or another company which handles the legal documents of your firm. It is mandatory to have a registered agent with establishments in Massachusetts or authorized to perform activities in this state. We remind that our company formation consultants in USA can act on behalf of your company in Massachusetts nonetheless of the activities you wish to perform.  Besides the registered agent for your business in USA, an operating agreement is required. 

Taxes in Massachusetts

The sales tax in Massachusetts is set at 6.3%, but it is not imposed for Boston, the capital of this state. One should observe the taxes imposed for the activities and profits obtained in Massachusetts such as a 12% rate applied to short-term capital gains. As for the interests and dividends, these are levied with a 5.15% tax rate. Even if there is no inheritance tax in Massachusetts, please bear in mind that an estate tax is imposed.

Register for EIN in Massachusetts

The Employer Identification Number is issued by the IRS (Internal Revenue Service) for companies registered in this state. The EIN is necessary for tax purposes and other social contributions. Such number represents the social security number and it is provided as soon as the company has been incorporated.

Opening a corporate bank account in Massachusetts

In order to separate the personal belongings from the company’s assets, it is recommended to open a corporate bank account. This is also necessary for any financial operations of your business in Massachusetts and for simpler tax filings.

If you want to start a business in USA, and need to open a corporate bank account, it is suggested to verify the financial institutions available and to choose in accordance with your needs. Our local consultants in Massachusetts are at your disposal for further details in this matter.

Accounting services for your business

Each company with registered financial operations must hire an accounting firm which can take care of such aspects. Payroll, annual tax filings, bookkeeping, tax minimization methods or tax advice are part of the accounting services necessary for your firm.

Economy overview in Massachusetts

The industrial revolutions of the 19th century transformed Massachusetts into an influential state from the economic point of view. The manufacturing sector developed rapidly, but the engine of the economy is based on the agriculture and the fishing sector. The maritime import and export activities set Massachusetts among important players on an international scale. Boston (the capital), Springfield, Cambridge, Plymouth, Worcester and Brookline are only a few of the significant cities in which foreign investors can set up their operations. Massachusetts is known as a worldwide leader in engineering and biotechnology, it is known the fact that Alexander Graham Bell invented the telephone at the Boston University.

For a better understanding of how you can set up your business in Massachusetts, we invite you to contact our team of company formation consultants in USA.



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