Choose an entity type

One of the first decisions you will encounter in starting a new business is choosing a business structure. Here is an explanation of various structures and how they affect a company's tax treatment or liability.

File business entity papers with the Secretary of Commonwealth

Many types of business entities (such as corporations) are required to file papers with the Secretary of the Commonwealth in order to become established here, or, if already established elsewhere, do business in here. Most of these organizations are also required to file reports annually thereafter. Most first-time and annual filings can be submitted online.

Choose a name

Before you select your business name, you should understand trademarks, service marks, corporate names and the importance of selecting a name that is not already in use.


Obtain necessary licenses or permits

Many types of businesses need a license to operate. Local governments issue some types of licenses, while state agencies issue others. You may also need building, environmental or other types of permits from state or local government. Learn more here.

File a business certificate

Many businesses, regardless of how they are owned or organized, must file for a business certificate, also known as a d.b.a. (doing-business-as) certificate, with the clerk of the city or town in which the business is located. Here you will find a Massachusetts Local Officials Directory with contact information for city and town clerks, and for other local officials.

Get a Tax ID or Employer ID Number (EIN)

Prior to registering your business with the Massachusetts Department of Revenue, you will first need an IRS-issued Employer Identification Number for your business. Learn more about obtaining an Employer Identification Number (EIN) in this section of the IRS.gov website, and apply for an EIN online using the EIN Assistant.

Register your business with the Massachusetts Department of Revenue (DOR)

If you employ people working in Massachusetts, withhold from a pension plan, annuity or retirement distribution, sell or rent taxable items in Massachusetts, or meet other criteria, you need to register with the Massachusetts Department of Revenue (DOR). Use WebFile for Business to register as a new state business taxpayer, and file state withholding, unemployment insurance, quarterly wage reports and several other tax types online. The types of taxes you will be liable for depend on what line of business you're in and other factors.

Certificate of Good Standing

Businesses sometimes need proof, in the form of a 'Certificate of Good Standing' or a 'Certificate of Compliance' from the Department of Revenue (DOR), that all state tax liabilities have been met. (For example, in order to obtain a liquor license.) Use this online application to apply for a Certificate of Good Standing and/or Letter of Compliance.