United States

Company Formation in Massachusetts

Commonwealth of Massachusetts — Secretary of the Commonwealth (Corporations Division)

Formation Time

2–4 business days

Min. Capital

No minimum

Corporate Tax

8.0% corporate excise tax (plus $2.60 per $1,000 of taxable tangible property/net worth)

Foreign Ownership

100%

Overview

Massachusetts is the world's premier epicenter for life sciences, biotechnology, biomedical engineering, and artificial intelligence research. Anchored by the Boston-Cambridge corridor (Kendall Square — often described as 'the most innovative square mile on the planet'), Massachusetts is home to Harvard University, MIT, Boston University, and the world's most concentrated cluster of pharmaceutical giants (Pfizer, Novartis, Moderna, Biogen). Incorporating in Massachusetts provides immediate technological prestige and direct access to specialized venture capital funds, institutional grant programs, and elite engineering talent. While the state formation and annual report fees ($500) reflect its premium status, the return on credibility for biotech, MedTech, and advanced AI enterprises seeking venture investment or life sciences partnerships is unrivaled globally.

World's #1 biotech hub

Kendall Square innovation

Harvard & MIT talent

Top VC density

Global pharma capital

Why Choose Massachusetts

Kendall Square (Cambridge) — 'the most innovative square mile on the planet' for biotech and AI

World capital for pharmaceutical R&D, clinical trials, and gene therapy breakthroughs (Moderna, Biogen)

Unmatched academic talent pipeline from Harvard University, MIT, and Boston University

Deep concentration of healthcare and life sciences venture capital funds

Boston financial hub anchoring massive mutual funds and asset managers (Fidelity Investments)

Immediate credibility with global pharmaceutical licensing partners and FDA research programs

High-value commercial banking with institutions specializing in life sciences and deep tech

Full support for remote international corporate banking and foreign shareholder ownership

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Corporation	100%	1 (must equal number of shareholders up to 3)	None	21% federal CIT; 8.0% Massachusetts corporate excise tax	Biotech platforms, venture-backed therapeutics, medical devices, deep-tech AI
LLC	100%	N/A (member or manager managed)	None	Pass-through taxation; 0% state tax for foreign non-resident owners with no US income	Consulting, engineering advisory, healthcare software, university spinouts

Step-by-Step Formation Process

Entity Name Verification

1 day

Search Massachusetts Corporations Division registry.

Filing Articles of Organization

2–4 business days

Submit formation documents electronically with Secretary of the Commonwealth.

IRS EIN Registration

3–10 business days

Obtain Employer Identification Number from IRS.

FinCEN BOI Filing & Operating Agreement

1–2 days

Submit federal beneficial ownership report and execute governance bylaws/agreement.

Corporate US Bank Opening

3–5 days

Establish corporate bank accounts with Boston regional banks or digital platforms.

Costs & Fees

Government / License Fee	USD 500+
Our Service Fee	USD 1,000 – 2,500
Annual Renewal	USD 500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Boston has a rich commercial and investment banking ecosystem. Specialized life sciences lenders operate alongside national banks and digital banking networks.

Account Opening Time

3–7 business days

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

State Street Bank (Boston HQ)JPMorgan ChaseMercuryRelayCitizens Bank

Tax Overview

Corporate Tax

8.0% Massachusetts corporate excise tax; 21% federal CIT

Personal Income Tax

5.0% flat state income tax (plus 4% surtax on income over $1M)

VAT / Sales Tax

6.25% state sales tax

Capital Gains Tax

5.0% on long-term capital gains (12% on short-term gains)

Withholding Tax

30% federal statutory (reduced by treaties)

Double Tax Treaties

68 countries

Massachusetts corporations pay an excise tax consisting of 8.0% on net income plus $2.60 per $1,000 of taxable tangible property or net worth (minimum $456 tax). Both LLCs and corporations file an annual report with a state fee of $500 (LLC) or $125 (Corp).

Frequently Asked Questions

Why is Cambridge/Boston the top destination in the world for life sciences?

Kendall Square in Cambridge hosts the world's greatest concentration of biomedical innovation. Over 1,000 biotech companies, 18 of the top 20 global pharmaceutical firms, and leading research hospitals (Mass General, Brigham and Women's) are packed within a 5-mile radius, supported by Harvard and MIT.

Why is the Massachusetts LLC formation fee higher than other states?

Massachusetts sets its state LLC formation fee at $500 and annual report fee at $500. This reflects the state's focus on high-value corporate operations, life sciences, venture capital, and financial services rather than budget volume incorporations.

Can a foreign scientist or non-US founder incorporate in Massachusetts?

Yes. Foreign nationals can form and own 100% of a Massachusetts company without US citizenship, permanent residency, or a US visa.

How does the Massachusetts corporate excise tax work?

Massachusetts imposes a corporate excise tax that combines an income measure (8.0% of net taxable income) and a non-income measure ($2.60 per $1,000 of taxable tangible property or net worth allocated to Massachusetts), with a minimum excise tax of $456.

Can I open a US corporate bank account for a Massachusetts company remotely?

Yes. Incorp International enables foreign founders to open FDIC-insured US corporate bank accounts remotely with partner fintech platforms and commercial institutions.

What is Kendall Square?

Kendall Square is a neighborhood in Cambridge, Massachusetts, adjacent to MIT, recognized as the world's most innovative biotech cluster. Establishing an entity in Massachusetts gives early-stage deep-tech companies immediate credibility when applying for grants or pitching to VC investors.