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Massachusetts · How-To Guide

How do I get a business license?

Massachusetts Secretary of State, Corporations Division (entity formation) / Massachusetts Department of Revenue (tax registration) / City or Town Clerk (local business license)
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Massachusetts Secretary of State, Corporations Division (for LLCs and corporations) - file online at corp.sec.state.ma.us or through the Secretary of State's online filing portal
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Massachusetts Department of Revenue (DOR) for applicable taxes:
  5. - Sales and Use Tax (if selling taxable goods/services)
  6. - Withholding Tax (if you have employees)
  7. Register online through MassTaxConnect at mtc.dor.state.ma.us; free registration
  8. FILE A DBA (DOING BUSINESS AS / CERTIFICATE OF BUSINESS): if operating under a name different from your legal name, Massachusetts requires a Certificate of Assumed Business Name filed with the city or town clerk where you do business; fee varies by municipality (~$20-$60)
  9. Check with your city or town for any LOCAL BUSINESS LICENSES OR PERMITS - Massachusetts cities and towns each independently decide what local licensing to require; many require a local business license; contact your city/town clerk or licensing board
  10. Check for industry-specific state licenses: contractors (Home Improvement Contractor registration with Office of Consumer Affairs - mass.gov/hic); health professionals, real estate, cosmetologists, engineers through the Division of Professional Licensure (DPL) at mass.gov/dpl
  11. Renew entity annual report with Secretary of State; renew local licenses annually; renew professional licenses per DPL board schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Massachusetts business address
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $500 (one of highest nationally); corporation: $275; annual report: $500 (LLC), $125 (corporation); DBA certificate: $20-$60 (varies by municipality); sales tax registration: free; local license: varies RENEWAL: Entity annual report due annually (LLC: anniversary month; corporation: anniversary month); local license: annual; DPL professional licenses: biennial typically ONLINE OPTION: Yes - corp.sec.state.ma.us (entity formation and annual reports); mtc.dor.state.ma.us (tax registration/MassTaxConnect); mass.gov/dpl (professional licenses) WHERE TO GO: Secretary of State Corporations Division (entity); Massachusetts DOR (tax); City/Town Clerk (DBA and local license); DPL (professional licenses)
Online Option
Yes - corp.sec.state.ma.us (entity formation and annual reports); mtc.dor.state.ma.us (tax registration/MassTaxConnect); mass.gov/dpl (professional licenses)
Where to Go
Secretary of State Corporations Division (entity); Massachusetts DOR (tax); City/Town Clerk (DBA and local license); DPL (professional licenses)
Massachusetts Notes

Important state-specific details

  • Massachusetts LLC formation: $500 - one of the highest in the US (along with a few others); annual report also $500 - very high.
  • DBA Certificate: unlike most states, Massachusetts requires DBA certificates filed at the CITY OR TOWN LEVEL (not with the Secretary of State) - one for each city/town where you do business.
  • Massachusetts sales tax: 6.25% state rate; no local sales tax; food for home consumption exempt; alcohol, marijuana have special rates.
  • Home Improvement Contractor (HIC) Registration: required for any person or company doing residential contracting for $1,000+ - mass.gov/hic | (617) 973-8700.
  • Massachusetts DPL (Division of Professional Licensure): licenses real estate agents/brokers, cosmetologists, electricians, plumbers, engineers, and many other professions - mass.gov/dpl.
  • Massachusetts has a flat state income tax (5% for most income; capital gains may differ); corporations pay Massachusetts corporate excise tax.
Official Source

State office contact

State Office
Massachusetts Secretary of State, Corporations Division - corp.sec.state.ma.us | (617) 727-9640; Massachusetts DOR - mass.gov/dor | (617) 887-6367; DPL - mass.gov/dpl | (617) 727-3074