The Complete Guide to Massachusetts Business Licenses
Massachusetts does not issue a general state business license. Most businesses register with the Department of Revenue for taxes, file a business certificate with their city or town if they use a trade name, and get local and professional licenses where their activity requires them.
Step 1: Form the LLC
File a Certificate of Organization with the Secretary of the Commonwealth for $500 ($520 online). Every LLC also files a $500 annual report on or before its anniversary date. See the Massachusetts LLC guide for every formation step.
Step 2: Register on MassTaxConnect
Register with the Department of Revenue on MassTaxConnect for the accounts you need — sales and use tax, meals tax, room occupancy, withholding and others. After approval, DOR mails a Form ST-1 sales tax registration certificate for each location, which must be posted where customers can see it. The state sales tax rate is 6.25%.
Step 3: Business certificate (DBA)
If your business operates under any name other than its legal name, file a business certificate with the clerk of the city or town where the business is located — and file a new one if the name changes. A business certificate is not a license; it creates a public record of who owns the business.
Step 4: Local licenses and permits
Massachusetts cities and towns license many activities locally — food service through the board of health, common victualler and entertainment licenses, alcohol licenses through the local licensing board, and zoning and occupancy approvals through the building department. Check with your town hall before you sign a lease.
Step 5: Professional and trade licenses
The Division of Occupational Licensure oversees boards for electricians, plumbers, home improvement contractors, cosmetologists, real estate professionals and many more; health professions are licensed through the Department of Public Health's boards.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Certificate of Organization | Secretary of the Commonwealth | $500 ($520 online); $500 annual report |
| Sales tax registration (ST-1) | Department of Revenue (MassTaxConnect) | Posted at each location |
| Business certificate (DBA) | City or town clerk | Set locally |
| Local licenses and permits | City or town | Set locally |
| Professional or trade license | Division of Occupational Licensure | Varies |
Frequently Asked Questions
Does Massachusetts require a business license?
Massachusetts has no general state business license. Businesses register with the Department of Revenue, file a business certificate if they use a trade name, and get any local or professional license their activity requires.
Do I need a business certificate in Massachusetts?
Only if your business operates under a name other than its legal name. You file it with the clerk of the city or town where the business is located.
How do I get a Massachusetts sales tax permit?
Register on MassTaxConnect. After approval, the Department of Revenue mails a Form ST-1 certificate for each location, which must be posted where customers can see it.
How much does it cost to form an LLC in Massachusetts?
The Certificate of Organization costs $500 ($520 online), and the annual report is $500 a year.
Does a Massachusetts LLC need a business license?
Forming the LLC registers the company but is not a license to operate. The LLC still needs tax registration and any local or professional license its activity requires.