Massachusetts corporation law offers a variety of corporate entity structures from which to chose. Before you incorporate in Massachusetts, evaluate your goals to determine the best corporate structure for you.
Once you know what you want, incorporation in Massachusetts is easy through the online Secretary of the State's site. Ask yourself these key questions:
1. Do you plan on having other people own stock in your business, or do you plan on growing your business to sell?
2. Will you be able to keep complex minutes and paperwork, or are you looking for simplicity?
3. Do you prefer your business taxes to be separate from your personal income taxes?
4. How much liability are you willing to take on to incorporate in Massachusetts?
Chose a traditional corporation to allow for investors, and to provide the most protection from liability, or if you start small but have big plans to grow and sell the business.
For more flexibility, go with a partnership or sole proprietorship, which allow for simple incorporation and upkeep of the business. For simplicity coupled with liability protection, start a limited liability company in Massachusetts.
Action Steps
The best contacts and resources to help you get it done
Evaluate the best structure when incorporating in Massachusetts
When choosing how to incorporate in Massachusetts, assess personal liability associated with each entity, understand the tax implications, become aware of operating formality requirements, and familiarize yourself with any related registration or reporting regulations.
I recommend: Review the
Small Business Administration Massachusetts Guide's concise explanation of incorporating a business in Massachusetts, or find a summary of incorporation entities on a local law firm like the
Law Office of Bernard J. Hamill website. You'll be able to make an informed decision after researching the pros and cons of each type of entity.
Formalize your business with corporation laws in Massachusetts
File paperwork carefully and don't miss any details. Incorporation in Massachusetts requires that certain paperwork be initialed, as well as fees paid. Understand the requirements of incorporating the entity you have chosen, as well as ongoing obligations beyond the first year.
I recommend: File your paperwork through the Massachusetts Secretary of the State's
Corporation Division website. Make sure you understand the
filing fees necessary for Massachusetts corporation and partnership law.
Understand Massachusetts corporation and partnership law
Although it is always prudent to seek legal advice, read the statutes and regulations carefully to understand your obligations. You will be better armed to ask intelligent questions and understand the context of your attorney's advice.
I recommend: Review the
corporation laws in Massachusetts carefully. The statutes are clearly written and will provide you with an understanding of the requirements for the entity you choose.
Tips & Tactics
Helpful advice for making the most of this Guide
- Think about what you will name your business. Massachusetts corporation law requires a unique business name. The Massachusetts Secretary of the State site allows you to review business names already registered and check availability of your chosen business name.
The official source of Massachusetts Corporation and Partnership Law is
the Massachusetts Corporation and Partnership Law page at Business.com
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