How to start a business in Massachusetts: the Boston checklist

Key takeaways

• Starting a business in Massachusetts takes up to five filings: a name check and entity filing with the Secretary of the Commonwealth, a business certificate from your city or town clerk, an EIN from the IRS, and a MassTaxConnect account with the Department of Revenue.
• A Massachusetts LLC costs $500 to form and $500 a year for its annual report, according to the state’s LLC page as read on November 13, 2026. A for-profit corporation costs $275 to form for up to 275,000 shares.
• Sole proprietors and general partnerships skip the Secretary of the Commonwealth filing entirely.
• The Boston business certificate (DBA) costs $65 at the City Clerk’s Office, Room 601 of Boston City Hall, and is renewed every four years.
• An EIN from the IRS is free, and the Massachusetts sales tax you register to collect is 6.25%.
• Every Massachusetts employer has to carry workers’ compensation insurance, whatever the number of employees or hours worked.

If you are opening a shop, a restaurant, a consultancy or a trade business in Boston or a nearby city or town, the process runs through three levels of government. Starting a business in Massachusetts is a sequence of filings: you pick a legal structure, register it with the Secretary of the Commonwealth if the structure requires it, file a business certificate with your city or town clerk if you trade under another name, get a federal Employer Identification Number, and register for state taxes with the Department of Revenue.

The sections below follow that order and give the fee, the form and the office for each step, with Boston City Hall details where the step is local. The last sections cover city licenses and the duties that begin with your first hire.

What are the steps to start a business in Massachusetts?

The steps to start a business in Massachusetts are set out in the Commonwealth’s Starting a New Business guide, published on Mass.gov. In order, they are:

1. Check your business name in the Secretary of the Commonwealth’s business entity search.
2. File formation papers with the Secretary of the Commonwealth’s Corporations Division, if you are forming an LLC or a corporation.
3. File a business certificate (DBA) with the clerk of the city or town where the business is located, if you use any name other than the legal one.
4. Get an Employer Identification Number (EIN) from the IRS.
5. Register with MassTaxConnect, the Department of Revenue’s online portal, if you have to collect or pay state taxes.

Which business structure should you choose in Massachusetts?

The business structure you choose in Massachusetts decides whether you file with the state at all, what you pay each year and who is liable for the debts.

A sole proprietorship is a business structure where a single individual owns and runs the business, according to the Mass.gov sole proprietorship page. The owner and the business are legally the same, so the owner is personally responsible for business debts. A sole proprietor working alone under their own name can start operating immediately, with no Secretary of the Commonwealth filing.

An LLC and a corporation are separate legal entities created by a state filing. Both pay formation fees and file annual reports with the Corporations Division. A general partnership, like a sole proprietorship, skips the state formation filing.

How much does it cost to register a business with the Secretary of the Commonwealth?

Registering a business with the Secretary of the Commonwealth costs $500 for an LLC and $275 for a typical for-profit corporation. The figures below come from the Mass.gov pages for LLCs and corporations, both read on November 13, 2026.

Entity	Formation filing and fee	Annual report
LLC	Certificate of Organization, $500	$500, due by the anniversary of the original filing
For-profit corporation	Articles of Organization, $275 for up to 275,000 shares, plus $100 for each additional 100,000 shares	$125, or $100 if filed electronically, due 2½ months after the fiscal year closes
Nonprofit corporation	Articles of Organization, $35	$15, due November 1
Foreign (out-of-state) corporation	Registration, $400	$125, or $100 if filed electronically, due 2½ months after the fiscal year closes

Filings go to the Corporations Division online, by fax, by mail or in person in most cases.

One federal step no longer applies to most new companies. FinCEN, a bureau of the U.S. Treasury, states on its beneficial ownership page that companies created in the United States are exempt from beneficial ownership information (BOI) reporting under a final rule effective August 14, 2026. Companies formed under foreign law and registered to do business in a state still fall under the rule.

Do you need a business certificate (DBA) in Boston?

You need a business certificate in Boston if your business operates under any name other than its legal name. A business certificate, often called a DBA (“doing business as”), is a public record filed with a city or town clerk that shows who owns a business trading under an assumed name. It is not a business license. The requirement comes from state law, M.G.L. c. 110, s. 5, and each city or town runs its own filing process.

According to the City of Boston’s business certificate page, the Boston rules as of November 13, 2026 are:

• The filing fee is $65, and renewal costs the same.
• Owners who do not live in Massachusetts pay an extra $35.
• A change of business address costs $50.
• The certificate is renewed every four years.
• The form has to be notarized. The City Clerk’s Office notarizes it free when you file in person with a photo ID.
• Post office boxes and virtual addresses are not accepted as the business address.

Boston has no online filing for the certificate. You file in person at the City Clerk’s Office, Room 601, 1 City Hall Square, or by mail with a check or money order payable to the City of Boston. Corporations and LLCs using a trade name file too, after registering with the Secretary of the Commonwealth.

The exception is a business that uses only its legal name. A sole proprietor trading under the owner’s own full name, or an LLC using the exact name on its Certificate of Organization, does not file. Skipping a required certificate carries a fine of up to $300 for each month the violation continues under M.G.L. c. 110, s. 5. A business in Cambridge, Somerville or Brookline files with that municipality’s clerk instead.

How do you get an EIN and register for Massachusetts taxes?

You get an EIN from the IRS and register for Massachusetts taxes through MassTaxConnect. An Employer Identification Number (EIN) is the federal number the IRS issues to identify a business. The IRS online EIN application is free, issues the number immediately on approval, and warns against websites that charge for one. The IRS tells LLCs and corporations to form the entity with the state before applying.

A sole proprietorship with no employees is the only structure that does not have to get an EIN, according to Mass.gov. That owner registers under a Social Security number instead.

MassTaxConnect is the Department of Revenue’s online system for registering, filing and paying state taxes. The DOR registration page asks for your EIN, business start date, legal and mailing addresses, and the names, titles and Social Security numbers of owners or officers.

The Massachusetts sales tax is 6.25% of the sales price or rental charge, according to the DOR’s sales and use tax guide (updated May 7, 2026). After you register, DOR issues a Sales and Use Tax Registration Certificate, Form ST-1, for each location, and you have to display it on the premises.

What licenses and permits does a Boston business need?

The licenses and permits a Boston business needs depend on what it sells and where, and most are issued by the City of Boston, not the state. The city’s business licensing page points to the Boston Licensing Board (Room 809, Boston City Hall) for food and alcohol licenses and to Entertainment Licensing for live music. A Common Victualler License, for example, covers cooking and serving food. Alcohol licenses also need approval from the state Alcoholic Beverages Control Commission.

State boards license many professions, so check with the board that regulates yours before opening. For questions about permits, licensing or choosing a location, the city’s Office of Small Business at 26 Court Street answers by phone at 617-635-0355 and by email at smallbiz@boston.gov.

What changes when you hire your first employee in Massachusetts?

Hiring your first employee in Massachusetts adds insurance, payroll tax and leave contributions to your obligations. All employers operating in Massachusetts have to carry workers’ compensation insurance for their employees, regardless of hours worked, according to the Department of Industrial Accidents. Sole proprietors, LLC members and LLP partners do not have to cover themselves. An uninsured employer faces a stop work order and fines of at least $100 a day.

You also add a withholding account in MassTaxConnect and register for Paid Family and Medical Leave (PFML). Businesses with at least one Massachusetts employee register for PFML through MassTaxConnect, according to the PFML contributions page. That page, updated July 1, 2026, lists a contribution rate of 0.88% for employers with 25 or more employees. Employers with fewer than 25 covered individuals do not owe the employer share. Unemployment insurance is handled separately by the Department of Unemployment Assistance.

What should you recheck before you act?

Each figure below was read on the official page on November 13, 2026. Confirm it again before you file or pay.

• LLC and corporation fees ($500, $275, $125 or $100, $35, $15, $400): Secretary of the Commonwealth, Corporations Division.
• Boston business certificate fees ($65, $35 non-resident, $50 address change) and City Clerk counter hours: Boston City Clerk, 617-635-4601. Two boston.gov pages list different closing times, 4 p.m. and 4:30 p.m.
• Sales tax rate (6.25%) and MassTaxConnect registration types: Department of Revenue.
• PFML contribution rate (0.88%), which is reset each year, and any 2027 rate: Department of Family and Medical Leave.
• BOI reporting exemption for U.S. companies (final rule effective August 14, 2026): FinCEN.
• Workers’ compensation fines ($100 a day minimum): Department of Industrial Accidents.
• Unemployment insurance registration rules, and Boston zoning and occupancy approvals for your address, which this guide does not cover: Department of Unemployment Assistance and Boston Inspectional Services.

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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