--- title: "Massachusetts Entity Running Costs and Filings" description: "What a Massachusetts entity costs to form and keep compliant each year, from the state filing fee to the minimum corporate excise tax." canonical: https://www.teamed.global/country-hiring-guides/united-states/massachusetts/entity-running-costs-and-filings --- ![Massachusetts business district.](/cluster-assets/country-hiring-guides/united-states/massachusetts/entity-running-costs-and-filings/images/hero.webp) # What does it costto run an entity in Massachusetts. Massachusetts entities owe a state formation fee and an annual minimum corporate excise tax, and Teamed's EOR skips both while you test the market. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Massachusetts guide At a glance ## Massachusetts running costs, quickly Setting up a corporation in Massachusetts means paying the Secretary of the Commonwealth's registration fee of $500 up front, then filing and paying a minimum corporate excise tax of $456 every year the entity exists, whether it turns a profit or not. Neither figure moves because your headcount is small. Both apply the moment you incorporate, and both keep applying until you formally dissolve. Minimum franchise tax$456 Formation / registration fee$500 Formation and registration ## What it costs to register in Massachusetts Registering a corporation with the Massachusetts Secretary of the Commonwealth carries a fee of $500. That payment covers the initial filing that creates the entity on the state's books, and it is separate from anything you owe the Department of Revenue later. This is a one-time cost at formation, but it sets the tone for everything that follows. Massachusetts treats the entity as a permanent taxpayer from that point forward, and the state expects filings on schedule regardless of how active the business actually is. Ongoing tax ## The minimum excise tax you can't avoid Massachusetts sets a minimum corporate excise tax of $456, and every corporation registered in the state owes at least that much each year. It does not matter if the entity is dormant, lightly staffed, or losing money. The Department of Revenue treats the minimum as a floor, not a suggestion. For a company still working out whether Massachusetts is the right long-term base, that fixed annual charge is worth weighing honestly against the alternative of not holding an entity there at all yet. Other filings ## Annual reports and other recurring paperwork Beyond the excise tax, a Massachusetts corporation typically has other standing obligations, an annual report to the state, a registered agent kept current, and payroll and employment filings once staff are on the books. None of these disappear because the business is small or new. The administrative load is the part that surprises founders more than the dollar figures do. Someone has to track deadlines, file on time, and keep the entity in good standing, and that work continues whether or not the entity is generating revenue. Before you commit ## Sometimes an employer of record is the better fit For a small or still-changing team, or while you're genuinely testing whether Massachusetts is worth a permanent presence, an employer of record is a fair way to operate, not a lesser one. Talk to a member of the team about your specific situation, or run the numbers yourself in the crossover calculator, since the right answer depends on salaries and how long you intend to stay. Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In Massachusetts, that means Teamed handles the Secretary of the Commonwealth registration, gets the entity current with the Department of Revenue, and only then hands you the keys, fully staffed and fully compliant. It's the same approach across the 100+ countries where Teamed runs Global Entity and Employment Operations, which we call GEMO, so the handover feels familiar no matter where you're expanding next. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Massachusetts Questions ## Massachusetts running costs, answered What is the minimum tax a Massachusetts corporation must pay each year? Massachusetts sets a minimum corporate excise tax of $456. Every registered corporation owes at least that amount annually, regardless of profit or activity level. How much does it cost to register a company in Massachusetts? The Massachusetts Secretary of the Commonwealth charges a registration fee of $500 to form a corporation. That is separate from any ongoing tax obligations that begin once the entity exists. Do I still owe the minimum excise tax if my Massachusetts entity has no revenue? Yes. The $456 minimum corporate excise tax applies whether the entity is active, dormant, or running at a loss. The Department of Revenue treats it as a fixed annual floor. What other filings does a Massachusetts entity need besides the excise tax? Beyond the annual excise tax, a Massachusetts corporation generally needs to file an annual report, maintain a registered agent, and keep up with employment and payroll filings once it has staff. These are recurring obligations, not one-time tasks. Is it cheaper to use an EOR instead of setting up a Massachusetts entity? It depends on your headcount, salaries, and how long you plan to operate in the state. Talk to a member of the team or use the crossover calculator to compare your specific numbers rather than guessing. Where these figures come from ## Sources Figures on this page are drawn from the Massachusetts Department of Revenue's corporate excise tax guide and the Massachusetts Secretary of the Commonwealth's corporations division fee schedule. ## More on entities in Massachusetts - [Hiring in Massachusetts, overview](/country-hiring-guides/united-states/massachusetts)parent - [Massachusetts setting up](/country-hiring-guides/united-states/massachusetts/entity-setup)sibling - [Massachusetts tax presence](/country-hiring-guides/united-states/massachusetts/permanent-establishment-risk)sibling - [Massachusetts entity or eor](/country-hiring-guides/united-states/massachusetts/eor-vs-entity)sibling - [Massachusetts moving from an eor](/country-hiring-guides/united-states/massachusetts/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Massachusetts](https://www.teamed.global/contact?from=entity-running-costs-and-filings)CTA