Small businesses are the backbone of America, so it’s no surprise that new businesses are forming every day. Are you looking to start your own business? Here are a few helpful steps for establishing a new business in Massachusetts.
Decide on Business Structure
Your very first step in establishing a new business in Massachusetts is deciding on the structure of that business. The choice should depend on the type of goods/services being offered, number of founders involved, and potential personal liabilities. You may want to seek advice from an attorney and accountant before making a decision. The following are the major business structures to consider:
- Sole Proprietor
- Limited Liability Company
- S Corporation
Request a Tax ID Number
Businesses operating in the United States must have an Employer Identification Number. You may apply for one online at the IRS website. The process is fairly easy and you will receive a response within just a few days.
File a DBA
In Massachusetts, you must file a “Doing Business As” form in the city of town where the business is located. There is typically a fee to obtain the certificate from the city/town clerk. Additionally, the certificate must be renewed after a certain number of years. If you relocate or close the business, you must also notify the town of this change. Contact the local clerk’s office for more information.
Register Your Business with the State
You must also register your business with the state of Massachusetts. The filing process depends on the business structure. A different form is available for corporations versus limited liability companies/partnerships. There are also tax disclosure forms and trade/service marks to consider.
Depending on the type of business you are operating, you may be required to obtain specific licenses and/or permits. Perform the proper research and start your business off on the right foot by obtaining these before operating in the state of Massachusetts.
Register as an Employer
If you plan to hire any employees, you will need to register as an employer and pay employment taxes. If you are not familiar with employment law and taxation, it may be best to hire a payroll company to properly handle employee pay and taxation.
Keep Good Accounting Records
In addition to hiring a payroll provider, you may also want to hire an accountant when establishing a new business in Massachusetts. Your business will be subject to taxes and auditing, so it is important to keep proper accounting records. All business finances should be separate from your personal finances.
More on Establishing a New Business in Massachusetts
A new business can be a fun and exciting process. Get your business off on the right foot by completing the necessary steps to legally operate in the state of Massachusetts. Above are the key preliminary steps to complete. There may be many more additional steps required, depending on your specific business. For example, you may need to select a location and negotiate a commercial lease, hire employees, establish contracts with vendors, purchase business insurance, etc.
Although a business can bring great success to you personally, it also comes with certain risks and liabilities. To best protect you and your family, consult with an attorney on the proper establishment of a new business and safeguards that you should put in place. Contact Martino Law Group today for a free initial consultation on your new business plans.