--- title: "Setting Up a Business Entity in Massachusetts" description: "How to register a company in Massachusetts, the formation fee and minimum franchise tax involved, and when Teamed's EOR gets you hiring faster." canonical: https://www.teamed.global/country-hiring-guides/united-states/massachusetts/entity-setup --- ![Massachusetts business district.](/cluster-assets/country-hiring-guides/united-states/massachusetts/entity-setup/images/hero.webp) # How do you set upa company in Massachusetts. You register with the Secretary of the Commonwealth and pay a state fee, or Teamed employs your team under our entity while you decide. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Massachusetts guide At a glance ## Massachusetts entity setup, the short version Forming a corporation in Massachusetts means filing with the Secretary of the Commonwealth's corporations division and paying a registration fee of $500. Once formed, the entity owes a minimum corporate excise tax of $456 to the Massachusetts Department of Revenue, whether or not it turns a profit. Minimum franchise tax$456 Formation / registration fee$500 The paperwork ## What registering an entity in Massachusetts actually involves To hire directly in Massachusetts, you need a legal entity on the ground, usually a corporation or LLC filed with the Secretary of the Commonwealth's corporations division. That filing carries a registration fee of $500, payable when you submit your Articles of Organization. Filing the entity is only the start. You still need a registered agent, a Massachusetts bank account, state tax registrations, and payroll set up correctly before you can legally pay your first employee. Each of those steps takes coordination, and most first-time founders underestimate how many separate state offices are involved. The ongoing cost ## The minimum franchise tax you owe every year Once your entity exists, Massachusetts expects a minimum corporate excise tax of $456 annually, according to the Department of Revenue's corporate excise tax guide. This applies even if the entity has no revenue yet, so a dormant or slow-growing subsidiary still generates a real annual bill. That figure sits on top of the registration fee, and it recurs every year the entity stays open. For a company still testing whether Massachusetts is the right long-term market, that's a fixed cost you carry regardless of how many people you've actually hired. Timing ## How long the whole process realistically takes The state doesn't publish a guaranteed processing window, and timing shifts with filing volume, whether you file online or by mail, and whether your paperwork is complete on the first try. Banking and tax registrations add further time on top of the state filing itself. In practice, most companies plan for the entity, the bank account, and the tax registrations to take real weeks, not days, before a first paycheck can legally go out. If you need someone hired next month, that timeline is worth weighing against an EOR that already has the infrastructure live. Before you commit ## Sometimes an employer of record is the better fit An employer of record isn't a lesser option, it's the right call for a small or still-forming team, or when you're testing whether Massachusetts is even the right market before you commit to the entity and its ongoing tax bill. Talk to a member of the team about your specific plan, or run the numbers yourself with 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 we absorb the Articles of Organization filing, the $500 registration fee, the registered agent, and the tax registrations that come with the $456 minimum excise tax, so your team is already working under our EOR while the entity gets built. When it's ready, we hand over a fully operational Massachusetts entity, payroll history intact, across the 100+ countries GEMO covers. 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 entity setup, frequently asked questions How much does it cost to register a company in Massachusetts? Filing your Articles of Organization with the Secretary of the Commonwealth's corporations division costs $500. That's separate from any legal, banking, or tax registration costs you'll also incur before payroll can run. Do I owe Massachusetts tax even if my entity isn't profitable yet? Yes. Massachusetts charges a minimum corporate excise tax of $456 regardless of profit, so a newly formed or slow-growing entity still owes it every year it stays registered. Can I hire someone in Massachusetts before my entity is fully set up? Not legally through your own entity, since payroll and tax registrations need to be in place first. An EOR like Teamed can employ the person immediately under an existing entity while you build yours. Is an EOR more expensive than setting up my own Massachusetts entity? It depends on headcount, salaries, and how long you plan to stay in the state. The crossover calculator compares the ongoing entity costs, including the minimum excise tax, against EOR fees for your specific situation. What happens to my entity if I start with an EOR and switch later? Teamed can set up the Massachusetts entity, migrate your employees into it, and hand it back to you fully operational. You keep the option open without committing to the entity and its tax obligations upfront. Where these figures come from ## Sources Figures on this page come 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 running costs](/country-hiring-guides/united-states/massachusetts/entity-running-costs-and-filings)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-setup)CTA