A business entity is the structure that a business chooses to form. These include limited liability companies (LLCs) or corporations. Business entities have their own tax identification numbers, which were created to reduce the personal liability of business owners when running a business.
Starting a Business in Massachusetts
When you start your business, you can choose from a variety of business types, but the most common are corporations and limited liability companies.
Forming a Company in Massachusetts
To form a corporation in Massachusetts, you must file Articles of Association with the Massachusetts Secretary of Commonwealth. These articles must contain the name and address of the company, purpose of the company, number of authorized shares, share restrictions or restrictions, name and address of registered agent, names of officers, date of incorporation, and signatures of the promoters of the company. The fee for filing the Articles of Association is $275, plus an additional $100 for each additional 100,000 shares above 275,000 in issue.
After you submit your essay, you will be issued a federal tax identification number, also known as an Employer Identification Number (EIN), from the IRS. This number will then help you open bank and credit accounts so you can operate as a business and is also required for tax purposes. Be sure to check with an insurance agent about the coverage you may need as a new business.
Form an LLC in Massachusetts
An LLC is formed by filing a certificate of organization with the Massachusetts Secretary of the Commonwealth. Complete the online form and submit. You will then be required to pay a registration fee of $500. Allow one to two weeks to process the form.