Small firms can benefit from forming an LLC because of the liability protection it provides and the tax benefits it provides. Follow the steps below for getting your Massachusetts limited liability company up and going after you’ve decided that an LLC is the most suitable corporate entity for your requirements.

Note that you have the option of forming the limited liability company (LLC) yourself, or you may employ a professional company formation agency to do all of the legwork on your behalf.

1. Naming your Massachusetts LLC

When choosing a name for a limited liability company (LLC) in the state of Massachusetts, there are two primary rules that must be followed:

• The name of a limited liability company (LLC) must be able to be differentiated from the names of other firms already registered with the Massachusetts Secretary of the Commonwealth Corporations Division.
• The name of a limited liability company (also known as an LLC) is required to include one of the following words or abbreviations: “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC.”

Make a reservation for your LLC name with the Commonwealth Corporations Division.

After deciding on a name for your limited liability company (LLC), you can make a reservation for it with the Corporations Division of the Massachusetts Secretary of the Commonwealth. 

This will prevent another company from using the name before you submit the Certificate of Organization for your LLC.

First, check to see whether the name you want to use for your limited liability company is available by utilizing the Business Entity Search and the Name Reservation Database provided by the Secretary of the Commonwealth. 

In the event that the name you choose is not already used, you may submit an Application for Reservation of Name to secure it for a period of up to sixty days. The registration must be sent over the mail, and there is a charge of $30 to reserve the space.

In the event that a term of sixty days is insufficient for your needs, you have the option of extending your reservation for an additional sixty days by paying an additional price of thirty dollars before the first reservation period comes to an end.

2. Choose a Registered Agent in Massachusetts

A registered agent in Massachusetts is required of every limited liability company operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.

It is acceptable for the Registered Agent to be either a resident of Massachusetts or a business entity that is permitted to conduct operations in the state. It is required that the Registered Agent have a real, live street address in the state of Massachusetts.

What exactly is the role of a Registered Agent?

A Registered Agent receives tax forms, legal paperwork, lawsuit notices, and formal government communication for your firm. Consider the role of the registered agent as that of the point of contact for your company with the state.

Who can serve as a Registered Agent?

A Registered Agent must either be an individual who lives in Massachusetts on a permanent basis or a company that is permitted to operate inside the state of Massachusetts and act in the capacity of a Registered Agent service. You have the option of selecting anybody who works for the organization, including yourself.

3. Filing your Certificate of Organization

The Certificate of Organization, also known as the Articles of Organization in other states, is a document that lays forth fundamental information about your limited liability company and is used to formally create it. Because this form serves as the legal registration for your company with the state, it is essential that all of the details be accurate.

What info should be included on a Certificate of Organization?

When completing the Certificate of Organization for your Massachusetts LLC, you are required to give the following information:

• LLC’s name
• If the term of the LLC is permanent or restricted.
• The location of the main office of the limited liability company.
• The name and location of the registered agent for the limited liability company
• Location where the Sec of State should send notifications to the limited liability company (LLC) through mail.
• How the Limited Liability Company (LLC) will be run: by its members or by its managers
• Whether or whether the limited liability company will offer professional services
• Names and addresses of all of the organizers of the limited liability company, as well as
• The address and telephone number of at least 1 member or management who has direct knowledge of the activities of the limited liability company (LLC).

Submitting Your Organization’s Certificate of Incorporation

In the state of Massachusetts, a limited liability company (LLC) may be established by submitting a Limited Liability Company Certificate of Organization to the Corporations Division of the Massachusetts Secretary of the Commonwealth.

You have the option of filing the certificate online or sending it in the mail. The filing price for paper copies is $500 while the filing charge for electronic submissions is $520. Keep in mind that all checks should be made payable to the “Massachusetts Secretary of the Commonwealth.”

Foreign LLCs i.e. LLCs that have been founded in states other than Massachusetts and that plan to do business inside the state are required to pay a registration fee of $500 (or $520 if the filing is done through fax) and register with the Massachusetts Secretary of the Commonwealth Corporations Division.

4. Obtain a Certificate of Completion From the State

After the formation paperwork of the LLC has been submitted and authorized, the state will send you a certificate that proves the LLC’s official existence in response to a written request for a copy together with the appropriate amount of postage.

With this certificate, the limited liability company will be able to get an Employer Identification Number (EIN), as well as business permits and business bank accounts like Bluevine and Kabbage business bank.

5. Make an Operating Agreement for Your Company.

Even while establishing a detailed LLC operating agreement is not a legally required step for founding a limited liability company in Massachusetts, it is highly suggested for all new limited liability firms to do so.

The following items should be included in the operating agreement:

• Describe the business structure of the limited liability company.
• Determine the specific roles and responsibilities that each member of the LLC will have.
• Describe in detail how the limited liability company will be operated.

Without an operating agreement that specifies member obligations, a limited liability company (LLC) may face serious legal and operational hurdles.

6. Obtain your employer tax ID (EIN)

A federal employer identification number, commonly known as a tax ID number, will be required of many limited liability companies (LLCs). An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. 

You need an EIN in order to pay federal employe