How To Obtain Your Massachusetts Business License
Are you interested in starting a business in the state of Massachusetts? There are many steps that must be taken to complete this process. It involves choosing a business idea, writing out a plan of action, and choosing the proper business entity to represent the products and services that you will be offering. It’s also important to choose a name that is memorable, and if you will have employees, you will need to apply for and receive your EIN number. Of course, you must have a bank account for your business and then apply for all of the pertinent permits and licenses that will pertain to the company you will be establishing. Once this is done, it is highly recommended that you form an LLC so that your personal assets are never at risk. Here is more information about the process of obtaining a Massachusetts business license and why you should have an associated LLC for that business.
How To Get Your Business License In Massachusetts
One of the best places to obtain the most recent information is the EOHED website. Once there, simply go to the start a business section, and follow the provided step-by-step guide. Additional documentation and information are available on the MSBDC website as well. If you are in Boston, or any of the other surrounding communities, you can learn more about what permits and licenses will be necessary. Depending upon the city you are in, or the town, general licenses are often needed to operate your business. The DOR website can also help you with information in this regard. Finally, you can find all of the documents you will need, along with information on professional licensing, so that you can get started right away. Once your business is set up, creating an LLC for that company is the next best step that you can take.
What Is An LLC?
LLC is an acronym for a limited liability company. The name represents what it actually does. It is literally a separate entity, one that will protect you from those that will try to obtain your personal assets through legal channels. It’s very easy to do, and once it is done, creditors cannot pursue your personal assets if you are ever in a situation where debt is involved. To do this, you must fill out very specific paperwork that can help you complete this process.
Forms Needed For LLCs In Massachusetts
The forms that you will need will include the Certificate of Organization and the Operating Agreement. In this information, you are going to list several different types of information. The Certificate of Organization is the primary document and the one that is mandated by the state to create your LLC. Your EIN number, as well as the general character of your business, must be presented on this document. The street address and name of your LLC must also be presented, as well as the location and name of your registered agent. People that are members of this LLC will also be listed along with their addresses. This must be signed by you, and when you submit this to their Secretary of the Commonwealth Corporations Division, you will do so with a $500 filing fee.
The Operating Agreement For LLCs
This document is a very important one to create as it is representative of the functionality and duties of not only yourself but members that are involved. It is not a mandatory document, but it can serve its purpose, particularly when you are involved in any type of legal action. It is going to list the members of the LLC, their voting powers, rights, responsibilities, and how profits and losses will be allocated. It can also state provisions such as the procedures for buyouts, who will be taking the votes, and who will be holding the meetings. All of the rights and responsibilities of yourself and the members will also be stated, along with the general purpose of the business. Once this is done, you will keep this for your records.
Tax And Regulatory Requirements For LLCs In Massachusetts
LLCs cannot be taxed specifically. They are a separate entity, and any taxes that must be paid will come from the primary owner of the business. Although other members may be listed as contributors to paying taxes that are owed, this is typically paid by the person who owns the business. Understanding all of this can be somewhat complex to those that have only had sole proprietorships or partnerships in the past. Although the paperwork is relatively straightforward, it needs to be filled out and submitted properly to ensure that it will be approved.
Finding someone to help you with setting up an LLC in Massachusetts is not difficult to do. In fact, these same companies can also help you understand how much you must pay in taxes and also help with information regarding getting your business license. Any information that you need regarding limited liability companies can be provided by these businesses that have helped thousands of other customers. If you would prefer to do this in the most expedited way, contact one of these companies today. They will do their best to assist you, and also complete the process for you if that is what you would like to do.