I often get asked by people, how much does it cost to incorporate? Here is a quick overview of the various filing fees that you can expect to pay to get your business up and running:
Massachusetts corporations pay a minimum fee of $275 on formation and then, after the first year, an annual fee of $125 is due. There is also an annual minimum corporate excise tax of $456 that all corporations pay in Massachusetts.
Massachusetts Limited Liability companies pay a formation fee of $500 and then an ongoing annual fee of $500 but there is no excise tax due. Note that if you incorporate under the laws of another state (Delaware
is the most popular) and are doing business in Massachusetts, you will need to pay a one-time registration fee and an ongoing annual fee to qualify to do business in the state. Limited Liability Companies need to pay a $500 registration fee and an ongoing $500 annual fee. Corporations formed in other states need to pay a $400 registration fee and an ongoing annual fee of $115.
That leaves the legal fees, to form a Massachusetts corporation my office charges a flat fee of $700 for legal services. Because LLCs are more complex they are billed at an hourly rate and the fees are usually a little bit higher than for corporations. These fees do not include buy-sell or other stockholder’s agreements you should consider entering into in connection with the formation of your business. Please see our law web site (www.inventurelaw.com) for contact information.
