Incorporating in Massachusetts means you’ll create a company in a state that has a strong local economy that invests heavily in education and technological research, especially in its thriving life sciences industry. Massachusetts is also home to many Fortune 500 companies and highly respected universities, with both recent graduates and experienced pros who want to join new businesses.
Below, you’ll learn how to incorporate in Massachusetts, from choosing your structure to filing articles of organization and maintaining compliance.
What’s in this article?
- What does it mean to incorporate a business in Massachusetts?
- What are the advantages of forming a corporation in Massachusetts?
- How much does it cost to incorporate in Massachusetts?
- What are the steps to incorporate your business in Massachusetts?
- How Stripe Atlas can help
What does it mean to incorporate a business in Massachusetts?
Incorporating in Massachusetts means creating a separate legal entity—a corporation—that exists apart from its founders. Once it’s formed, the company can own property, sign contracts, and take on debts in its own name. This legal separation protects business owners from having to cover business liabilities with their own personal assets.
In Massachusetts, you create a corporation when you file articles of organization with the secretary of the commonwealth. From that point on, the company must follow the state’s governance rules, including by appointing directors and officers, maintaining records, and holding annual meetings.
Incorporation marks the shift from an informal operation to a structured business that can raise capital and issue stock.
What are the advantages of forming a corporation in Massachusetts?
Massachusetts has a modern incorporation process that incentivizes electronic filing and offers targeted tax incentives for building and hiring within the state.
Here’s a closer look at the advantages of incorporating here.
A modern, nationally aligned statute
Massachusetts replaced its older corporate laws with the Massachusetts Business Corporation Act of 2004, which was modeled closely on the American Bar Association’s Model Business Corporation Act. Everything from shareholder voting rights to director duties and merger procedures mirrors what’s used in other major jurisdictions in the United States. That alignment gives lawyers and investors predictable governance standards.
The state updates the law regularly to keep up with improvements in the economy. This includes formally recognizing the validity of electronic records, e-signatures, and remote shareholder meetings.
Real-time administration and public record
The secretary of the commonwealth’s Corporations Division runs a user-friendly digital system. Articles of organization are time-stamped on submission, and accepted filings quickly appear in the public database. The system’s immediacy creates a reliable public record of corporate standing. This is especially helpful when a bank, regulator, or counterparty needs to conduct due diligence.
Concrete financial incentives
Massachusetts corporations benefit from many different types of business incentive programs. One of these programs is the Economic Development Incentive Program, where a qualifying business can receive tax credits for creating new jobs in economically distressed areas. These programs aren’t limited to new corporations, but early-stage companies can use them to offset the costs of the first years of growth.
How much does it cost to incorporate in Massachusetts?
It depends on the kind of corporation your company is. For most for-profit businesses, filing the articles of organization, which covers up to 275,000 authorized shares, costs $275. The fee scales by $100 per additional 100,000 shares. This lets early-stage companies start lean and expand only when equity planning gets more complex.
Nonprofits pay $35 to incorporate. The fee for registering an existing out-of-state company is $400, making it advantageous for Massachusetts-based founders to incorporate in the state from the start.
Once it’s formed, every corporation files an annual report. It costs $125 to file ($100 if filed online). Nonprofits file for $15 either way.
There are also other small, predictable costs. A registered agent might cost you about $100–$300 a year, if you hire a service. If you need proof that the corporation is in compliance with all state requirements, you can order a certificate of good standing from the secretary of the commonwealth for $12.
What are the steps to incorporate your business in Massachusetts?
Incorporation in Massachusetts is a fairly simple process, but it involves making some important decisions about how you want your company to operate. Once your company information is ready, you’ll file paperwork with the secretary of the commonwealth and set yourself up to legally operate.
Here’s what this process entails.
1. Choose your corporation type
Start by identifying the kind of corporation your company is.
Massachusetts recognizes the following corporation types:
For-profit corporations: Companies that aim to earn a profit. Corporations are taxed as C corporations (C corps) by default, but domestic business corporations can also elect federal S corporation status for pass-through taxation.
Professional corporations: Corporations that seek to provide services in a single profession such as medicine or law.
Nonprofit corporations: Businesses organized around charitable or educational work that reinvest their profits into their work. In Massachusetts, nonprofits are generally tax-exempt, and certain kinds of nonprofit work have limited tort liability.
Foreign corporations: Out-of-state companies that would like to do business in Massachusetts.
2. Check and reserve your name
Your corporate name must be distinct within Massachusetts and include a designator such as “Incorporated,” “Company,” “Limited,” or an abbreviation (e.g., “Inc.,” “Co.,” “Ltd.”). Run a search through the secretary of the commonwealth’s online database to confirm availability. You can reserve a name for 60 days by filing a short online request and paying a fee, if you’re not ready to file immediately.
3. Identify your incorporator(s) and initial directors
The incorporator (often a founder or attorney) is the person who signs and submits the articles of organization. You can also designate initial directors of the company. One person can hold multiple offices such as president, treasurer, and secretary. There are no residency or age requirements for directors and officers.
4. Designate a registered agent
Every Massachusetts corporation must list a registered agent with a street address in the state (no PO Boxes). The agent receives official and legal correspondence on your company’s behalf and must be available during regular business hours. This can be an individual, such as the incorporator or an initial director, another Massachusetts corporation, or a professional registered agent service.
5. File articles of organization
Filing the articles of organization legally creates your corporation. You can file online through the secretary of the commonwealth’s Corporations Division portal, or you can file by mail, by fax, or in person.
The articles of organization include:
Corporate name and principal office address
Registered agent’s name and Massachusetts address
A statement of purpose (a general “any lawful business” clause is fine)
Authorized shares and par value (if applicable)
Names and addresses of incorporator, directors, and officers
The corporation’s fiscal year
Optional provisions such as limitations on director liability
Ensure you’re filing for the correct type of corporation. Online filings are time-stamped immediately, and approval typically arrives within a few business days. Once the filing is accepted, your corporation is officially recognized and assigned a Massachusetts entity ID.
6. Adopt bylaws and hold an organizational meeting
Bylaws act as the internal rule book for how the corporation will operate. They define how meetings are called, how directors are elected, and how shares are authorized and issued. You aren’t required to file these documents with the state, but they’re legally required.
You’ll need to call the company’s first organizational meeting to formally adopt these guidelines. You’ll also elect directors, if you haven’t named them yet, and elect corporate officers. At this meeting, you might also want to authorize the issuance of shares to initial shareholders.
Keep the bylaws and written minutes in your corporate records. Maintain a stock ledger, if applicable. These internal records establish corporate formality and protect liability limits.
7. Register for Massachusetts taxes
Massachusetts corporations are required to register with the Department of Revenue and pay state taxes. You can file and pay business taxes electronically through MassTaxConnect.
8. File your annual report
Every corporation must file an annual report. Typically, this is due within two and a half months after its fiscal year ends. Nonprofits are required to file their reports by November 1. The report updates officer and director information.
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