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How Much Does an LLC Cost in Massachusetts?
An LLC in Massachusetts costs $1,000 in Year 1: a $500 state filing fee plus $500 in recurring state fees ($500 / year) for the first year. After that it costs $500 per year, for a 5-year state total of $3,000. That makes Massachusetts the 2nd most expensive state to form an LLC — the national average Year 1 cost is $220 and the median is $160.
Massachusetts LLC Fee Breakdown
| Fee | Cost |
| State filing fee (one-time) | $500 |
| Recurring state fees — $500 / year | $500 / yr |
| Year 1 total (filing fee + first year) | $1,000 |
| 5-year total (filing fee + 5 × annual) | $3,000 |
How Massachusetts Compares to Other States
- Rank: Massachusetts is the 2nd most expensive state to form an LLC — #50 of 51 jurisdictions by 5-year state cost ($3,000).
- Year 1 vs the nation: $1,000 in Year 1 — $780 more than the national average of $220 (median $160).
- 5-year vs the nation: $3,000 over five years, against a national average of $586 and a median of $350.
- Recurring fee: $500 / year ($500/yr) — no separate franchise tax on top.
- Cheapest in the US: Arizona at $50 over 5 years. Most expensive: California at $4,120.
Massachusetts LLC Annual Fees & Franchise Tax
Massachusetts charges $500 per year in recurring state fees ($500 / year). Over five years that is $2,500 in recurring fees alone — $3,000 including the one-time filing fee.
No. Massachusetts does not charge LLCs a separate franchise tax. The recurring state cost is an annual filing or report fee of $500 per year ($500 / year), which is what the Year 1 and 5-year totals on this page are built from.
How to Form an LLC in Massachusetts (Step by Step)
- Choose a name. Pick a distinguishable name that includes "LLC" and check it is available on the Massachusetts Secretary of State website before you file.
- Appoint a registered agent. Name a person or service with a physical street address in Massachusetts who can receive legal mail during business hours — be your own for free, or hire one (see our registered agent guide).
- File your formation document. File the Articles of Organization (called a Certificate of Formation in some states) with the Massachusetts Secretary of State and pay the $500 filing fee.
- Create an operating agreement. Not filed with the state, but it records who owns what and how the LLC is run — banks and partners will ask for it.
- Get an EIN. Apply free on the IRS website in about 10 minutes — see our EIN guide. You need it to hire, pay taxes, and open a business account.
- Open a business bank account and stay compliant. Keep business money separate (see our business bank account guide), then keep up with Massachusetts's recurring fees — $500 / year — so the LLC stays in good standing (see our annual reports guide).
Good to Know About Massachusetts LLC Costs
The most expensive state in America to run an LLC: $500 to file and another $500 every single year — $3,000 over five years before any extras. There's no cheaper workaround; it's simply MA's fee schedule.
File on the official Massachusetts Secretary of State site →
Fees verified against official state sources — last checked October 26, 2026.
Massachusetts LLC Cost FAQs
How much does it cost to start an LLC in Massachusetts?
The state filing fee in Massachusetts is $500. Adding the first year of recurring state fees ($500 / year) brings the Year 1 state cost to $1,000. Optional extras — a registered agent service, an operating agreement template, or a formation service — cost extra, but the state itself charges $1,000 in Year 1.
How much does an LLC in Massachusetts cost every year?
Massachusetts charges $500 per year in recurring state fees ($500 / year). Over five years that is $2,500 in recurring fees alone — $3,000 including the one-time filing fee.
Does Massachusetts charge LLCs a franchise tax?
No. Massachusetts does not charge LLCs a separate franchise tax. The recurring state cost is an annual filing or report fee of $500 per year ($500 / year), which is what the Year 1 and 5-year totals on this page are built from.
Do I need a registered agent for an LLC in Massachusetts?
Yes. Every LLC in Massachusetts must name a registered agent with a physical street address in the state who can receive legal and official mail during business hours. You can be your own agent if you live in Massachusetts and are reliably available, or hire a service — typically around $125 per year — to keep your own address off the public record.
What is the cheapest way to form an LLC in Massachusetts?
File it yourself on the official Massachusetts Secretary of State website, linked on this page. Filing direct costs just the $500 state filing fee (plus the $500 / year recurring fee) and skips formation-service markups. Use the free LLC cost calculator on this site first so you know your exact Year 1 and 5-year totals before you file.