Incorporate In Massachusetts

Officially known as the Commonwealth of Massachusetts, this state is the 3rd most densely populated in the US. It features two metropolitan areas: Springfield and Greater Boston.

The Bay State's economy has shifted from its traditional history of manufacturing to a modern emphasis on services, making it a leader in health care technology, high technology, higher education and financial services. Massachusetts also offers key attractions for those wishing to incorporate their business within the USA.

Benefits of incorporating in Massachusetts:

Reputation and image is essential to successful business, never more so than in today's fast moving online world, and being an incorporated entity is often seen as a mark of trustworthiness and reliability. Incorporating as an LLC or a C Corp in Massachusetts allows an entrepreneur from anywhere in the world to enjoy full access to the USA market with all the reputational and operational benefits of a native business.

Incorporation also opens up the possibility of acquiring a US-based bank account, which can offer business advantages from easier payments to access to internet commerce programs such as that operated by Amazon and others.

Importantly, incorporating your business in Massachusetts also means that your personal assets are separated from your business activities, protecting your private wealth from being used to service any commercial debts that may be accrued.

Increased Tax Flexibility and Advantages

Entrepreneurs in Massachusetts enjoy the freedom to operate either as C Corps or LLCs, the choice of which determines the nature of the taxes imposed on your business. LLCs are taxed based on federal income taxes. Therefore, you can choose your LLC to be classified as a partnership or a C Corp, and so taxed based on either personal income or net revenues generated in Massachusetts.

C-Corps are assessed based on the net income of the business. Both domestic and foreign corporations must pay an annual excise tax (also known as corporate income tax) which is calculated based on the corporate income attributable to activities within the state.

Massachusetts Filing Obligations

Massachusetts-based LLCs are required to file a document called Articles of Organization upon formation of the company, followed by a yearly report due on the incorporation’s anniversary date. The Articles of Organization document needs to contain the name and address of a registered agent who resides in the state. This agent must be able to handle all official papers, including tax and legal documents.

For Massachusetts C Corporations, an initial document known as an Articles of Incorporation is filed, containing details of authorized shareholders and their shares’ par value. This must be followed up with submissions of annual reports, due on the 15th day of the third month after the end of the tax year.

Miscellaneous State Regulations and Requirements

Massachusetts does not require a company owner or its directors to reside within the state in order for the business to operate there. However, both C-Corp directors and LLC managers must be at least 18 years old, and the members’ personal details must be entered in the formation documents to be filed with the state during incorporation.

There are also strict criteria laid out for the naming of your company or corporation. All Massachusetts LLC names must end with “Limited Liability Company”, “Limited Company” or equivalent abbreviations. C Corporations must own unique and unmistakable names, and are allowed to use endings like “Corporation”, “Incorporated” or “Limited”, along with their abbreviated equivalents. Abbreviations must be followed by a period, and name designations must not include any symbols. In both cases, names implying any association with the government such as “United States”, “Veteran” or “U.S.” are prohibited.

Choosing your name wisely is a vital part of incorporation. Inc Plan offer a free name-finder service to help you identify a unique designation that is both good for business and compliant with all Massachusetts regulations.

Requirements for forming an LLC in Massachusetts:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

Massachusetts LLC names must end with the term “Limited Liability Company”, “Limited Company” or the abbreviations “LC”, “LLC”, “L.L.C.”. Company names that can be associated with the government, like “United States”, “Veteran” or “U.S.”, is not allowed in Massachusetts. Names containing symbols are also, not allowed.

LLC filing requirements

Massachusetts-based LLCs are required to file a formation document called Articles of Organization and an annual report due on the incorporation’s anniversary date.

Required information for the Articles of Organization

The Articles of Organization must include the name and address of a registered agent which resides in Massachusetts, and which is available to manage legal and tax business documentation. For more help with the incorporation filing or for registered agent services feel free to contact Inc. Plan (USA).

LLC taxes and fees

For state tax purposes, Massachusetts LLCs are taxed based on federal income taxes. Therefore, you can choose if you want your LLC to be classified as a partnership or a C corp. It means you can be taxed based on your personal income or based on your company’s net revenues generated in Massachusetts.

Requirements for forming a C corporation in Massachusetts:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Massachusetts are as follow:

Name requirements for C corporations

Companies incorporated in Massachusetts must own unique and unmistakable names, and are allowed to use endings like “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. Abbreviations must be followed by a period and name designations must not include symbols whatsoever. If the incorporated name contains the terms “United States”, “Veteran”, “U.S.” or any association with the government, then it will be not be approved.

Filing requirements in Massachusetts

Firms incorporated in Massachusetts, are required to file a formation document called Articles of Organization. Additionally, incorporations must submit an annual report which is due on the 15th of the third month after the close of the taxable year.

Required information for the Article of Incorporation

The Articles of Organization must include a listing of the company’s authorized shares and par value, as well as the name and address of a registered agent with a physical Massachusetts address. Increases in the number of shares may affect the initial filing fees. Inc. Plan (USA) can help you with the necessary filings and also provide qualified registered agent service.

Taxes and fees requirements

Domestic and foreign corporations are subjected to an annual excise tax (corporate income tax) calculated based on the corporate income generated in Massachusetts.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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