By Jake Lawson, LLC Formation Strategist
Let’s address the elephant in the room right up front: Massachusetts has one of the most expensive LLC annual report requirements in the United States at $500-$520 per year. After helping over 1,200 entrepreneurs navigate state compliance requirements, I can tell you that this cost catches many business owners off guard.
But here’s the reality—if you’re doing business in Massachusetts, you need to factor this ongoing expense into your business planning. The consequences of not filing are severe, and there’s no way around this requirement if you want to keep your LLC in good standing.
Let me walk you through everything you need to know about Massachusetts annual reports, including strategies to manage this significant ongoing cost.
The Massachusetts Annual Report Reality Check
Annual cost: $500 (mail) or $520 (online) Due date: Before your LLC’s anniversary date every year Consequences of missing: Administrative dissolution of your LLC Processing time: 1-2 business days First filing: Due the year after formation
Cost comparison with other states:
- Massachusetts: $500-$520
- Delaware: $300
- California: $20
- Wyoming: $60
- Montana: $20
Bottom line: Massachusetts is expensive, but if you’re doing business there, you don’t have a choice.
When Your Annual Report is Due
Understanding Your Anniversary Date
Your annual report is due every year before your LLC’s anniversary date—the date your Certificate of Organization was approved by the state.
Example timeline:
- LLC formed: March 15, 2025
- First annual report due: By March 15, 2026
- Second annual report due: By March 15, 2027
- And so on, every year
Finding Your Anniversary Date
Method 1: Check your Certificate of Organization Look for the approval date stamped on your original filing documents.
Method 2: Use the business entity search
- Go to corp.sec.state.ma.us/corpweb/CorpSearch/CorpSearch.aspx
- Search for your LLC name
- Click on your LLC in the results
- Look for “Date of Organization in Massachusetts”
Filing Strategy: Early is Better
My recommendation: File 30-60 days before your due date. Here’s why:
- Avoids last-minute stress
- Prevents accidental late filing
- Gives you time to fix any issues
- No penalty for filing early
The Costs: Online vs. Mail Filing
Online Filing: $520
- Processing time: 1-2 business days
- Convenience: Complete the process from home
- Confirmation: Immediate filing confirmation
- Records: Easy to save digital copies
Mail Filing: $500
- Processing time: 1-2 business days (plus mail time)
- Total time: 7-10 days typically
- Payment: Check or money order required
- Records: You’ll need to make your own copies
My take: The $20 difference between online and mail filing is negligible. Online filing is worth the extra cost for the convenience and speed, unless you’re really trying to save every dollar.
Step-by-Step Online Filing Process
Massachusetts online filing is straightforward once you know the system. Here’s my detailed walkthrough:
Getting Access
- Go to the online filing system: corp.sec.state.ma.us/corpweb/loginsystem/externallogin.aspx
- Get your Customer ID and PIN:
- Check your mail for the courtesy reminder (includes these credentials)
- If you don’t have them, email corpcid@sec.state.ma.us with your LLC name
- Login and select “Annual Report”
Completing the Form
Section 1: Basic Information
- Year: Enter the current year (2025 if filing in 2025)
- LLC Name Amendment: Only check this if you’re changing your LLC name (additional fees apply)
Section 2: Massachusetts Address Enter the address where your LLC records are maintained. This can be:
- Your business address
- Your home address
- Your registered agent’s address
Section 3: Business Description Describe your business in simple terms:
- “Consulting services”
- “Real estate investment”
- “Marketing and advertising”
- Or use the generic: “Any lawful business for which a limited liability company may be organized under the laws of the Commonwealth of Massachusetts”
Section 4: Duration Most people leave this blank for perpetual existence. Only fill in if you want your LLC to automatically dissolve on a specific future date.
Section 5: Registered Agent
- Must be a Massachusetts street address (no P.O. boxes)
- Must be available during business hours
- Update if your registered agent has changed
Section 6: Management Structure
- Manager-managed LLCs: List managers and their addresses
- Member-managed LLCs: List authorized signers and their addresses
- Real estate LLCs: List anyone authorized to sign real estate documents
Section 7: Additional Matters Most LLCs can leave this blank. Only use if you have specific additional provisions to add.
Final Sections:
- Enter your contact information
- Choose email or mail for next year’s reminder
- Type your name to sign electronically
- Review everything carefully
- Submit payment ($520)
After Filing
- You’ll receive confirmation that your filing was submitted
- Processing takes 1-2 business days
- No receipt is mailed or emailed
- Verify completion using the business entity search after a few days
Mail Filing Process
If you prefer to file by mail:
- Download Form D: sec.state.ma.us/divisions/corporations/download/c156c512cdllcannual.pdf
- Complete all sections (same information as online process)
- Prepare payment: $500 check or money order payable to “Commonwealth of Massachusetts”
Mail to:
Secretary of the CommonwealthOne Ashburton Place, Room 1717Boston, Massachusetts 02108-1512
- Wait for processing: 1-2 business days after they receive it
Consequences of Not Filing
Massachusetts takes annual report compliance seriously. Here’s what happens if you don’t file:
Immediate Consequences
- Your LLC loses good standing status
- Marked as “delinquent” in state records
- Cannot obtain certificates of good standing
- May face challenges with banking and contracts
Long-term Consequences
- Administrative dissolution of your LLC
- Loss of liability protection
- Loss of your business name
- Cannot conduct business legally in Massachusetts
Reinstatement Process
If your LLC gets dissolved:
- File Certificate of Reinstatement ($100 fee)
- Pay all missed annual report fees
- File current annual report
- Total cost can be thousands if you’re multiple years behind
My advice: The reinstatement process is expensive and time-consuming. It’s much better to stay current with your filings.
Managing the High Cost
The $500+ annual fee is substantial, especially for small businesses. Here are strategies to manage this expense:
Budget Planning
- Set aside $45/month ($540/year) for annual report costs
- Include this in your business planning from day one
- Consider it a cost of doing business in Massachusetts
Tax Deductibility
- Annual report fees are business expenses
- Deductible on your business tax returns
- Keep receipts and filing confirmations
Business Evaluation
Ask yourself honestly:
- Is your Massachusetts LLC generating enough revenue to justify the cost?
- Are you actually conducting business in Massachusetts?
- Would dissolving and forming elsewhere make sense?
Alternative Considerations
If you’re not actively doing business in Massachusetts:
- Consider dissolving your Massachusetts LLC
- Form an LLC in a lower-cost state where you actually operate
- Be aware that you may still need to register as a foreign LLC if doing business in Massachusetts
Common Massachusetts Annual Report Mistakes
After working with hundreds of Massachusetts businesses, here are the mistakes I see most often:
Mistake 1: Forgetting the Anniversary Date
The problem: Not tracking when your LLC was formed The consequence: Missing the deadline and facing dissolution The solution: Set calendar reminders and track your anniversary date
Mistake 2: Assuming Reminders Will Come
The problem: Relying on the state’s courtesy reminders The consequence: Missing the deadline if reminders don’t arrive The solution: Set your own reminders and don’t depend on the state
Mistake 3: Not Budgeting for the Cost
The problem: Being surprised by the $500+ annual fee The consequence: Cash flow problems or missed filings The solution: Budget for this expense from the beginning
Mistake 4: Filing After the Deadline
The problem: Thinking late filing just means paying a small penalty The consequence: Potential dissolution and expensive reinstatement The solution: File early, not late
Mistake 5: Incorrect Management Information
The problem: Not updating manager or member information The consequence: Outdated state records and potential legal issues The solution: Keep all information current with each filing
Is a Massachusetts LLC Worth the Cost?
This is the question many entrepreneurs ask, and the answer depends on your specific situation:
Massachusetts LLC Makes Sense If:
- You’re physically located and doing business in Massachusetts
- Your business generates sufficient revenue to justify the cost
- You need Massachusetts-specific legal protections
- You have employees or physical assets in Massachusetts
Consider Alternatives If:
- You’re not actually doing business in Massachusetts
- Your business is very small or just starting out
- You can legally operate from a lower-cost state
- The $500+ annual fee represents a significant burden
Foreign LLC Consideration
Important: If you dissolve your Massachusetts LLC and form elsewhere, you may still need to register as a foreign LLC in Massachusetts if you’re doing substantial business there. This can also involve fees and compliance requirements.
Verification and Record Keeping
After filing your annual report:
Verify Filing Success
- Wait 3-5 business days after filing
- Search your LLC on the Massachusetts business entity database
- Click on your LLC name
- Look for your recent annual report in the filings section
- Save or print confirmation for your records
Maintain Good Records
- Keep copies of all annual report filings
- Save payment confirmations
- Document filing dates in your business calendar
- Store electronic copies in multiple locations
Planning for Next Year
Don’t wait until the last minute for next year’s filing:
Set Up Your System
- Calendar reminder 90 days before due date
- Budget allocation for the filing fee
- Update contact information with the state if needed
- Consider automatic payment methods
Track Business Changes
Throughout the year, note any changes that will affect your annual report:
- Address changes
- Management changes
- Business activity changes
- Registered agent changes
Massachusetts Secretary of State Contact Information
When you need official guidance:
- Phone: (617) 727-9640
- Hours: Monday-Friday, 8:45 AM – 5:00 PM (Eastern Time)
- Website: sec.state.ma.us
- Email: corpcid@sec.state.ma.us (for Customer ID/PIN issues)
Frequently Asked Questions
Can I file my annual report early?
Yes, you can file anytime before your anniversary date. Filing early is actually recommended to avoid last-minute issues.
What if I miss the deadline by a few days?
Contact the Secretary of State immediately. They may still accept your filing, but your LLC could be marked delinquent or face dissolution proceedings.
Can I get a refund if I dissolve my LLC after filing?
No, annual report fees are non-refundable once processed.
What if my business didn’t make any money?
You still must file the annual report regardless of business activity or profitability.
Can I change my LLC name on the annual report?
Yes, but there’s an additional fee. It’s usually better to file a separate name change amendment.
What happens if the state dissolves my LLC?
You’ll need to file for reinstatement, pay all missed fees, and may face complications with contracts, banking, and business operations.
The Bottom Line on Massachusetts Annual Reports
Massachusetts LLC annual reports are expensive—there’s no sugar-coating that reality. At $500-$520 per year, it’s one of the highest ongoing compliance costs in the nation. But if you’re doing business in Massachusetts, this cost is simply part of your operating expenses.
Key strategies for success:
- Budget for the cost from day one
- Set calendar reminders well in advance of your due date
- File early to avoid last-minute problems
- Keep good records of all filings
- Regularly evaluate whether Massachusetts LLC formation still makes sense for your business
My final advice: Don’t let the high cost surprise you or derail your business. Factor it into your planning, stay current with your filings, and focus on building a business that can easily absorb this ongoing expense. The alternative—dealing with dissolution and reinstatement—is far more expensive and disruptive.
Need help with other aspects of running your Massachusetts LLC? I’ve reviewed all the major formation services and compliance tools to help you choose the best resources for managing expensive state requirements. Check out my detailed service comparisons to find solutions that fit your budget and needs.
This guide is for informational purposes only and doesn’t constitute legal advice. Massachusetts requirements can change, so always verify current information with the Secretary of State. Consult with qualified professionals for guidance specific to your situation.
About Jake Lawson: With over 15 years of experience in LLC formation and compliance, Jake has helped more than 1,200 entrepreneurs navigate expensive state requirements and make informed decisions about where and how to structure their businesses.