The specific state and federal taxes you are required to pay, and associated insurance and reporting obligations, depend on your type of business and whether you have employees.

Overview of business tax obligations

If your business is a partnership or corporation (with or without employees), or a sole proprietorship with employees, the first thing you must do is obtain a federal identification number for federal and Massachusetts tax purposes.

Business income taxes

Sole proprietorships, corporations, partnerships, limited liability companies (LLCs) and limited liability partnerships (LLPs) are required to pay taxes on their income.

"Trustee" taxes, a.k.a. sales, meals, withholding & other taxes

Trustee taxes are taxes that are collected and remitted by an organization on behalf of the individuals who actually pay the taxes. In essence, the organization collecting and remitting the tax is serving as a trustee or agent. Trustee taxes include sales, meals, withholding, room occupancy, convention center financing surcharge, and excises on alcoholic beverages and tobacco. See also registering for state trustee taxes and overview of filing requirements.

Employer payroll tax, reporting & insurance obligations

An employer is any person, corporation or organization for whom an individual performs a service as an employee. As an employer you have various obligations including withholding income tax and paying unemployment and workers' compensation insurance.

Massachusetts Department of Revenue

Tax information for businesses and employers from the Massachusetts Department of Revenue.

Real estate taxes

Local governments fund most of their budgets with revenues from taxes on real estate. Proposition 2 1/2 pdf format of    Levy Limits: A Primer on Proposition 2 1/2  , enacted in 1980, imposed a levy limit and levy ceiling for each town. The Department of Revenue provides forms and brochures for local real estate taxpayers. Consult your city or town directly for information about local real estate taxes.