Massachusetts is known as the Bay State or the Commonwealth of Massachusetts and it is the most populous state in the USA. With important exits to the Atlantic Ocean and with an excellent infrastructure, Massachusetts is an impressive business hub which is placed in top preferences for opening companies of numerous foreign investors around the world. We have prepared a general guide to company incorporation in Massachusetts; assistance for the entire process can be obtained from our team of company formation specialists in USA.

How to register an LLC in Massachusetts

Among the business entities available for both nationals and foreigners, the limited liability company has proven to be successful in a vast range of industries. An LLC in Massachusetts can be incorporated in a fast manner if the requirements imposed by the Secretary of the Commonwealth Corporations Division are observed. If you want to set up a business in USA, and particularly in Massachusetts, it is suggested to operate a name verification in this sense. Businesspersons have the possibility to reserve the chosen name of the company for 60 days for a settled fee. The next step is to prepare the Articles of Association which must comprise the following information:

• the name of the company;
• the address of the business;
• the name of the owners;
• the board of managers;
• the name of the registered agent;
• the signatures of the owners.

The USA company formation is less bureaucratic, including Massachusetts, but for a proper understanding of the terms and conditions, you may address to our company incorporation agents in USA.

Information about the registered agent in Massachusetts

If you want to open a company in USA, make sure to consider the condition of appointing a registered agent for your business in Massachusetts. This can be an individual or another company which handles the legal documents of your firm. It is mandatory to have a registered agent with establishments in Massachusetts or authorized to perform activities in this state. We remind that our company formation consultants in USA can act on behalf of your company in Massachusetts nonetheless of the activities you wish to perform. Besides the registered agent for your business in USA, an operating agreement is required.

Taxes in Massachusetts

The sales tax in Massachusetts is set at a rate of 6.3% and it is not imposed for Boston, the capital of this state. One should observe the taxes imposed for the activities and profits obtained in Massachusetts, such as a 12% rate applied to short-term capital gains. As for the interests and dividends, these are levied with a 5.15% tax rate. Even if there is no inheritance tax in Massachusetts, please bear in mind that an estate tax is imposed. If you would like to know more about the taxation in Massachusetts, feel free to talk to our team of consultants.

Register for EIN in Massachusetts

The Employer Identification Number is issued by the IRS (Internal Revenue Service) for companies registered in this state. The EIN is necessary for tax purposes and other social contributions. Such a number represents the social security number and it is provided as soon as the company has been incorporated.

Opening a corporate bank account in Massachusetts

In order to separate the personal belongings from the company’s assets, it is recommended to open a corporate bank account. This is also necessary for any financial operations of your business in Massachusetts and for simpler tax filings.

If you want to start a business in USA and need to open a corporate bank account, it is suggested to verify the financial institutions available and to choose in accordance with your needs. Our local consultants in Massachusetts are at your disposal for further details in this matter.

Accounting services for your business

Each company with registered financial operations must hire an accounting firm that can take care of such aspects. Payroll, annual tax filings, bookkeeping, tax minimization methods or tax advice are part of the accounting services necessary for your firm.

Do I need an operating agreement for an LLC in Massachusetts?

There is no obligation in having an operating agreement for your limited liability company in Massachusetts, however, this kind of document is recommended and can be created with the help offered by one of our company formation agents in USA. An operating agreement is an internal document that comprises information about the owners and the rules that need to be respected. More than that, such a document comprises details about how the company needs to be controlled and managed. Please bear in mind that if you do not want to have an operating agreement for your LLC in Massachusetts, the state LLC laws are the ones to be considered when operating a business in this state. Feel free to address your inquiries about how to create an operating agreement and do not hesitate to ask for help from our company incorporation representatives in Massachusetts.

How to register foreign LLCs

Limited liability companies organized outside the state of Massachusetts need to be registered with the Secretary of the Commonwealth Corporation Division, by registering and submitting the Foreign LLC Application. This is a mandatory request if you would like to expand your business across borders and have activities in Massachusetts, USA.

Main steps in opening a property management company

Having a company in the real estate sector in Massachusetts is for sure a great business idea. Property owners can have varied activities with a property management business, like dealing with the entire maintenance of an office building or residential houses, for example. Below you can find out a few important steps in opening a property management company in Massachusetts, an ideal business for foreigners in USA:

1. Plan the business considering the startup costs, targeted market, profits, the number of properties you wish to manage.
2. Choose the proper business structure for your company. The LLC might be a suitable form for running a property management company.
3. Register for tax purposes and apply for EIN. You can use the IRS website or you can choose our team to handle this task.
4. Open a business bank account and a credit card for your firm, and make sure you separate the personal assets from the ones of the business.
5. It is important to keep accurate accounts so the next thing to do is to hire a specialized accountant.
6. Apply for special licenses and permits, the state and the local ones – the property management license is needed.
7. Bear in mind the importance of business insurance and protect your company right from the beginning.
8. Start promoting your property management company on the internet with the help of social media channels and start joining business associations.
9. Extend your business on the internet and create a website for your company – this is where your services will be presented.

Owners of property management companies can have varied activities in their firm like promoting available office spaces or accommodations for rent, handle different problems involving rented apartments. If you believe this is the type of business you want to open in Massachusetts, feel free to get in touch with us and ask for more details in this matter.

Specialists can help you choose the right business

Having a business in Massachusetts might take time until the entrepreneur decides on the activities he/she wants to implement. Some people might need help in discovering the proper business path and the ways in which they can generate profits. In this direction, the support of a specialist might be extremely helpful, and that because he/she, alongside the future business owner, will determine the type of activities, business structure, implementation methods, regulations, and many more. It all starts with a solid business plan which can be verified and analyzed by an advisor who can guide young entrepreneurs in Massachusetts. Having the support of a team of company owners will weigh much for international entrepreneurs who want to thrive outside their country, in this case, in Massachusetts.

Economy overview in Massachusetts

The industrial revolutions of the 19th century transformed Massachusetts into an influential state from the economic point of view. The manufacturing sector developed rapidly, but the engine of the economy is based on agriculture and the fishing sector. The maritime import and export activities set Massachusetts among important players on an international scale. Boston (the capital), Springfield, Cambridge, Plymouth, Worcester and Brookline are only a few of the significant cities in which foreign investors can set up their operations. Massachusetts is known as a worldwide leader in engineering and biotechnology, it is known the fact that Alexander Graham Bell invented the telephone at the Boston University.

We have gathered facts and information about business and economy in USA that you might find it interesting:

• according to recent statistics provided by the US Small Business Administration, there are more than 28.8 million small companies in USA;
• approximately 75% of the company owners in USA are optimistic about the business direction;
• around 27% of small businesses in USA did not receive funding or bank loans;
• a small business can be subject to approximately USD 10,000 as startup capital.

There are varied business entities an entrepreneur from abroad can register in Massachusetts, each of them subject to a different kind of taxation. In order to have a clear idea about how you can open a company in USA, including Massachusetts, you are invited to get in touch with our team of company formation specialists in USA. They can also offer assistance and information about the taxation scheme for companies in Massachusetts.

What is the income tax rate in Massachusetts?

All taxable incomes of companies in Massachusetts are subject to a 5.10% income tax rate. There are no tax brackets, but only a fixed tax rate imposed on revenues registered by businesses in this American state.

What is the capital gains tax rate in Massachusetts?

The long-term capital gains, the dividends and interests are subject to an income tax rate of 5.10%. As for the short-term capital gains in Massachusetts, these are levied with a 12% rate if they are attained in less than a year.

The sales tax in Massachusetts

The standard sales tax in Massachusetts is set at 6.25% for goods and services purchased in this state. It is good to know that there is no additional sales tax imposed by municipalities in Massachusetts.

Taxes for S corporations in Massachusetts

S corporations in Massachusetts are former traditional corporations which are seen as pass-through entities where the taxable income involves each member that forms the company. Please observe the following tax matters for S corporations:

• a rate of 1.93% is the corporate excise tax for incomes between $3 million and $9 million;
• a tax rate of 2.9% is imposed for gross receipts of $9 million or more;
• the corporate tax is paid individually, depending on the income shares for each member;
• a tax rate of 5.1% is applicable to the revenues registered by individuals in an S corporation.