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Forming an LLC in Massachusetts
Forming an LLC in Massachusetts is not very difficult. If you wish to get away from the paper work, you can hire a legal expert or an incorporation company to take care of the process for you. Regardless of your choice, it is always a good idea to have an attorney look at the Operating Agreement, because a poorly constructed Operating Agreement can lead to trouble with the IRS.
Forming an LLC in Massachusetts in 5 easy steps
- During the first step, you should start by picking a name for your LLC. The name cannot be used by any other LLC already; it cannot violate any trademark, and it must include an LLC identifier. Examples of LLC identifiers are “LLC”, “L.L.C.”, and “Ltd. Liability Co”. If the purpose contains anything with “judgement recovery” or “small claims court”, a disclaimer that clearly states “not practicing law” is required when forming an LLC in Massachusetts.
- During the second step, the Articles of Organization should be filed with the Massachusetts State filing office.
- During the third step, an organizational meeting should be held and an Operating Agreement should be adopted by the members (owners) of the LLC.
- During the fourth step, the LLC should obtain a Federal Employer Identification Number (FEIN) and get a company bank account.
- During the fifth and final step, the LLC should acquire a local business license for each and every city (or county) in which it will do business.
Important facts to take into consideration before forming an LLC in Massachusetts
- Forming an LLC in Massachusetts is comparatively expensive and the minimum state filing fee is no less than $275.00. (For 30 business days.)
- The Annual Report fee is also comparatively high in Massachusetts: $125.00. The annual report must be handed in within 2.5 months of the fiscal year end each year.
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