Massachusetts has remained one of the best states to start a company. According to statistics, it has the highest venture capital investment and patent creation rate compared to other states. So, knowing how to register a business in MA is always good.
Becoming a part of Bay State entrepreneurs requires several requirements and steps, detailed below. The investor must create a business plan and determine the legal ownership structure of their business.
Among the due diligence that must do to formalize a business is to choose a unique business name that no other company within Massachusetts possesses. Mapping out financing and evaluating potential buyers are steps you must accomplish before creating the business.
What to do to register a business in Massachusetts
More than 600,000 registered small businesses in Massachusetts, employing approximately 1.5 million people. This is attractive to new investors considering starting their businesses in this state.
Before knowing how to register a business in MA, it is ideal for planning various business market studies, operations planning, assessing the type of personnel you wish to employ and creating a business plan.
Massachusetts has the advantage of offering different resources to start the business you want. It helps to correctly decipher the type of business and identify the single steps and requirements that will be needed to launch the business. Start with the following:
- Beyond creating a business plan, you must determine the legal ownership structure; it can be a limited liability company, sole proprietorship or corporation.
- Choose a unique name for your business. Before doing so, do a statewide survey, so you do not imitate any business name. You can check with the IRS to see what names are available. You also need to know if the URL is available.
- Select an enrolled agent who will be the designated recipient of legal documents on behalf of a start-up company. This can be an entity, including the entity itself, or an individual residing in the state.
- It is important to register with the Secretary of the Commonwealth of Massachusetts before commencing operations. This will depend on the business structure of your company. In addition, you must file the necessary documents, either by mail or online.
- If the owner is a woman, you have the option of obtaining a credential from the Massachusetts Office of Minority and Women’s Business Assistance.
- Apply for the employer identification number. This is the business identification number for filing taxes and opening a legal bank account.
Note that when making a business plan, it is helpful to include the business’s marketing, sales, advertising and location. At the Commonwealth of Massachusetts, you can receive additional assistance in creating a good business plan.
Steps to take after registering a company
Registering a company in MA is easy thanks to the online filing option that solves everything in a few hours. You must wait a few days if it is done by mail. When you have the registration ready, there are a series of single steps you must follow to comply with state and federal contracting and filing regulations.
- It is advisable to separate personal assets from business assets. You can do this by opening a business bank account. This way, you protect personal assets and make it easier to record business profits and losses. Another way to separate assets is to obtain a credit card in the business name.
- From the beginning, use a standard accounting method or accounting software to better track profits, losses, and expenses.
- If you have registered a limited liability company, you can register your company for state tax in different departments: Unemployment Insurance Tax, Employee Withholding Tax and Sales Tax.
- You should set up an accounting process to help track business finances and properly file annual taxes. In your company, you can automate the process through accounting software.
- Don’t forget to apply for the necessary business permits and licenses. They are requested according to the activity that the company develops. Some of them are construction and health permits.
- Ideally, the company should have workers’ compensation and general liability insurance.
- Comply with the regulations for hiring employees in the state of Massachusetts. Report each new hire to the state. The employee must be eligible to work in the U.S., offer compensation to all employees, withhold income taxes as required, pay according to state requirements, and provide information by posting signs in conspicuous places.
How to register a business in MA if you are a woman
Suppose a woman is the creator of a business in MA. In that case, she can go to the Massachusetts State Minority and Women’s Business Assistance Office (SDO) to demonstrate that a woman owns and controls the company.
This will get you two certificates; one for the Commonwealth of Massachusetts and one for federally funded Department of Transportation projects.
When choosing the SDO process, you must wait at least 30 days for your application to be completed if you have the required documentation. Before that, as an applicant, you must attend a pre-certification workshop, as this is one of the requirements of the SDO.
If you plan to take your business to a national scale, you can also apply for national certifications, such as those offered by the Small Business Administration. The Small Business Administration offers three types of certificates for women-owned businesses. These include the Women’s Business Enterprise (WBE), Economically Disadvantaged Women-Owned Small Business (EDWOSB) and Women-Owned Small Business (WOSB).