Getting an EIN and state tax registration for a Massachusetts business

Key takeaways

• An EIN from the Internal Revenue Service is free, and the IRS online application issues the number in a single session.
• The Massachusetts Department of Revenue requires businesses to register in MassTaxConnect with an EIN; a sole proprietor with no employees registers under a Social Security number instead.
• Employers who pay wages for work done in Massachusetts must register with the Department of Unemployment Assistance (DUA) through Unemployment Services for Employers.
• Businesses with at least one Massachusetts employee must register for Paid Family and Medical Leave (PFML) through MassTaxConnect, and in 2026 employers with 25 or more covered individuals send 0.88% of eligible wages.
• Employers must report each new hire to the Department of Revenue within 14 days of the first day of work.

This guide is for owners setting up a new business in Boston or anywhere else in Massachusetts who need to know which tax accounts to open and in what order. An Employer Identification Number (EIN) is the federal tax ID that the Internal Revenue Service assigns to a business. A Massachusetts business gets the EIN from the IRS first, then uses it to register with the Massachusetts Department of Revenue in MassTaxConnect and, once it has employees, with the Department of Unemployment Assistance. The EIN is a federal number. The other registrations are state accounts, and none of them is filed at Boston City Hall.

The sections below cover who needs an EIN, how the IRS application works, what MassTaxConnect asks for, when DUA and Paid Family and Medical Leave registration apply, and what an employer has to do after the accounts are open.

Does a Massachusetts business need an EIN?

A Massachusetts business needs an EIN if it has employees or operates as a partnership, LLC or corporation, according to the Internal Revenue Service.

The state rule follows the federal one. The Massachusetts Department of Revenue says businesses are required to register in MassTaxConnect with an EIN. The exception is a sole proprietor with no employees, who registers under a Social Security number. A sole proprietor who hires staff needs an EIN like any other employer.

The IRS adds that you can request an EIN for banking or state tax purposes even when federal tax rules do not require one. A business generally needs a new EIN when its ownership or structure changes.

How do you get an EIN from the IRS?

You get an EIN from the IRS by applying online at IRS.gov, by fax or by mail, and the number costs nothing. The IRS application page says: “You never have to pay a fee for an EIN.”

The online application has four eligibility conditions, according to the IRS:

• The entity was formed in the United States or a U.S. territory.
• The principal place of business is in the United States or a U.S. territory.
• The applicant is the responsible party or an authorized representative.
• The applicant has the responsible party’s Social Security number or Individual Taxpayer Identification Number.

The online tool runs Monday through Friday from 6 a.m. to 1 a.m. Eastern time, Saturday from 6 a.m. to 9 p.m. and Sunday from 6 p.m. to midnight. You have to finish in one sitting, because the application cannot be saved and expires after 15 minutes of inactivity. The IRS allows one EIN per responsible party per day.

Order matters for LLCs and corporations. The IRS tells applicants to form the entity with the state first (in Massachusetts, with the Secretary of the Commonwealth’s Corporations Division), or the EIN application may be delayed.

Fax, mail and international applicants

Form SS-4 is the paper EIN application. The IRS says a faxed Form SS-4 gets a reply in about four business days when you give a return fax number, and a mailed one takes approximately four weeks. An applicant whose principal place of business is outside the United States cannot use the online tool and applies by phone, fax or mail.

How do you register a business with MassTaxConnect?

You register a business with MassTaxConnect by choosing Sign Up, then Register a New Business, on the MassTaxConnect home screen. MassTaxConnect is the Massachusetts Department of Revenue’s online system for registering, filing returns and paying state taxes. The Department of Revenue’s registration instructions list what to have ready:

• An EIN, or a Social Security number for a sole proprietor with no employees
• The business start date
• Legal and mailing addresses
• For every business except a sole proprietorship, the contact information, titles and Social Security numbers of owners or officers

The steps for a business that has never filed Massachusetts taxes are short.

1. Choose Sign Up, then Register a New Business.
2. Enter the registration information and select the tax types the business needs.
3. Watch for the confirmation email from the Department of Revenue.
4. Set up two-step verification at first login, using an authenticator app, text message or email.
5. Post the registration certificate when it arrives by mail.

Which Massachusetts tax types does a new business register for?

A new Massachusetts business registers in MassTaxConnect for each tax type that fits what it sells and whether it has a payroll. The Department of Revenue’s registration page names these among the choices: sales and use tax; withholding; meals, food and beverage; room occupancy; telecommunications services; and marijuana retail.

Sales tax is the common one for shops. The Department of Revenue’s sales and use tax guide (updated May 7, 2026) puts the Massachusetts sales tax at 6.25% of the sales price or rental charge. After a vendor registers, the Department of Revenue issues a Sales and Use Tax Registration Certificate, Form ST-1, for each business location. Form ST-1 must be displayed on the premises where customers can easily see it.

Withholding is the common one for employers. The Department of Revenue’s Withholding Tax Guide says employers register with the department to withhold Massachusetts income tax from wages, and that new businesses must file electronically.

When does an employer have to register with the Department of Unemployment Assistance?

An employer has to register with the Department of Unemployment Assistance when it pays wages for work done in Massachusetts. The Department of Unemployment Assistance (DUA) is the state agency that runs unemployment insurance, and its employer accounts are separate from MassTaxConnect. Registration happens on the Unemployment Services for Employers site, where you select Register your Business without logging in.

DUA asks for the legal business name, the Federal Employer Identification Number, the legal entity type, the state and date of incorporation, a Social Security number for each owner, officer, partner or member, and the principal business activity in Massachusetts. Most registrations are processed immediately, according to DUA.

Registering and owing contributions are two questions. DUA’s contributions page says an employer must contribute if it has one or more employees working at least one day a week for 13 weeks in a calendar year, or pays $1,500 or more in wages in any quarter. The 2026 rate for a new employer is 2.42%, and 6.08% for a new construction employer.

How does a Massachusetts employer register for Paid Family and Medical Leave?

A Massachusetts employer registers for Paid Family and Medical Leave through MassTaxConnect, the same Department of Revenue system used for withholding. Paid Family and Medical Leave (PFML) is the state program, run by the Department of Family and Medical Leave, that pays workers during family or medical leave and is funded by payroll contributions. The state’s PFML registration page says businesses with at least one Massachusetts employee are required to register and to file quarterly returns.

Size changes the bill, though the filing duty stays. According to the Department of Family and Medical Leave’s contribution rates page, employers with 25 or more covered individuals send 0.88% of eligible wages in 2026. Employers with fewer than 25 send an effective rate of 0.46% and pay no employer share. Workers paid on Form 1099-MISC count toward the workforce only if they make up more than 50% of it.

What do you file after the accounts are open?

After the accounts are open, a Massachusetts employer files withholding returns with the Department of Revenue, quarterly wage reports with DUA, quarterly PFML returns in MassTaxConnect and a new hire report for each worker. The withholding schedule depends on how much Massachusetts income tax the business expects to withhold in a year, according to the Department of Revenue’s Withholding Tax Guide (posted August 2026).

Annual withholding	Return	Due
$100 or less	Annual	January 31 of the following year
$101 to $1,200	Quarterly	Last day of the month after each quarter
$1,201 to $25,000	Monthly	15th of the following month; March, June, September and December returns are due the last day of the following month
More than $25,000	Quarterly	Same quarterly dates, with payments due within 3 business days once withheld tax reaches $500

New hire reporting has its own clock. The Department of Revenue’s new hire page says employers report newly hired employees and independent contractors within 14 days of their first day of work. Employers with 25 or more employees must report online through MassTaxConnect. Smaller employers may mail or fax Form NHR.

The Department of Revenue’s employer tax obligations page adds two paperwork items: a federal Form W-4 from each employee, and a Massachusetts Form M-4 when an employee claims a different number of exemptions for state purposes.

What should you recheck before you act?

Each figure below was checked on November 13, 2026 and can change.

• IRS online EIN hours and the one-per-day limit: confirm on the IRS “Get an employer identification number” page.
• DUA contribution rates (2.42% for new employers, 6.08% for new construction employers) are 2026 rates. DUA sets rates each year, so check the DUA contributions page for 2027.
• PFML rates (0.88% and 0.46%) are for 2026. The Department of Family and Medical Leave has posted 2027 figures on its contribution rates page; read them there before running January payroll.
• Withholding filing thresholds come from the Withholding Tax Guide posted August 2026. The Massachusetts withholding rate is published separately in the Department of Revenue’s Circular M.
• Registration fees: the MassTaxConnect and DUA registration pages list no fee. Confirm with the Department of Revenue at (617) 887-6367 or DUA employer customer service at (617) 626-5075.

This guide is general information, not legal or tax advice. Rules and fees change; confirm the current requirements with the agency named before you file or pay.

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