General guidance for starting a business
Explore these resources before starting your business in Massachusetts.
- Get free training and counseling. The Massachusetts Small Business Development Center offers several free business advising and training services.
- Conduct market research. Conduct a competitive analysis to set your business apart from the competition. This means studying your competitors to understand their strengths, weaknesses, and what they offer to attract customers. Visit the U.S. Small Business Administration for market information, statistics, and data about small businesses in your area.
- Write a business plan. You can find business plan templates on the U.S. Small Business Association's website.
- Learn about local licensing. Check with licensing boards in your city or town to see if your business needs a license to operate.
Choose your business structure
The business structure you choose affects the steps you need to take to get started, operating responsibilities, tax obligations, and how much of your personal assets are at risk.
There are 4 common business structures (sometimes called "business types" or "business subjects") in Massachusetts:
- Sole proprietorships
- Partnerships
- Limited Liability Companies (LLCs)
- Corporations (for-profit and nonprofit)
You'll want to choose the business structure that gives you the right balance of legal protections and benefits.
Steps to start your business
This section provides a general overview of the common steps required to start a business in Massachusetts.
Reminder: Your business structure will determine the steps you must complete to start your business. Use the links from "Choose your business structure" to learn which steps apply to your chosen business structure.
1. Check your business name
The Secretary of the Commonwealth lets you search for a Business Entity to make sure the business name you want is available.
2. File with the Secretary of the Commonwealth
If your business must file with the Secretary of the Commonwealth, visit their Filing by Subject page and follow the steps for the business structure ("subject") you've chosen to complete your filing. Sole proprietors and general partnerships can skip this step.
Note: The Sec. of the Commonwealth's website refers to business types or structures as "subjects."
In most cases, you can choose to file online, by fax, by mail, or in person.
Important
Any business filing with the Secretary of the Commonwealth may also have to report information to the federal government. Learn more about filing a beneficial ownership information (BOI) report with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
3. Get a business certificate (DBA) from your city or town
You must file a business certificate (sometimes called a DBA or “doing business as” name) if your business operates under any name other than its legal name. The “legal name” is the official name used when incorporating or, in the case of a sole proprietor, the owner’s legal name.
You'll file your business certificate in the city or town where your business is located.
Learn more about if your business needs a business certificate and how to get one.
4. Get an EIN
An Employer Identification Number (EIN) is used to identify a business and is issued by the Internal Revenue Service (IRS). It's also called a Federal Tax Identification Number.
A sole proprietorship with no employees is the only business structure that does not have to get an EIN.
5. Register with MassTaxConnect
If your business is responsible for collecting and paying taxes to the state, you'll need to create a MassTaxConnect account. You can pay business taxes to the Department of Revenue through MassTaxConnect.
Next steps after you've started your business
Available business resources and support
After you've started your business, you might still have some questions. The Massachusetts Office of Business Development provides a highly responsive, central point of contact with access to resources, expertise, and incentive programs.
Check if you need workers' compensation insurance
All Massachusetts employers must carry workers’ compensation insurance. This is required no matter how many employees you hire. This also applies to you if you’re going to be an employee of your business.
Learn about your business tax responsibilities
As you prepare for your business tax obligations, read this summary of tax information for new businesses in Massachusetts from the state's Department of Revenue.
If your business has multi-state tax filings, it may qualify for a reduced tax burden under Massachusetts' Single Sales Factor tax laws.
| Date published: | September 29, 2023 |
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| Last updated: | November 5, 2024 |