Massachusetts company registration

Massachusetts company registration

DOING BUSINESS IN MASSACHUSETTS

For over a decade, Healy Consultants has assisted our Clients with starting companies in Massachusetts. Our services include i) company setup ii) license registration iii) business bank account opening iv) employee recruitment assistance v) visa strategies and vi) office rental solutions. For more details, please refer to the information below.

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  • Advantages and disadvantages

    Advantages of Massachusetts company registration

      Massachusetts business registration
    1. A Massachusetts company is a cost-effective way to enter the US market because

      • It is possible to register an LLC in Massachusetts within a day with 1 director and 1 shareholder, who need not be American residents or nationals. Also, there is no requirement to travel in order to complete company incorporation;
      • Massachusetts law does not mandate a minimum share capital for company incorporation. Furthermore, there is no requirement to open a corporate bank account to support the new company;
      • All Massachusetts LLCs which are not conducting any business in the state will be exempt from any license requirements;
      • Shareholders of a Massachusetts LLC will be exempt from paying state taxes on their company income if the source of the income is outside the state. Furthermore, in such a case, no filings with the state government will be required.

    For more information, kindly refer to our page on advantages of USA company registration.

    Disadvantages of Massachusetts company registration

    1. All Massachusetts companies must pay federal taxes annually including
      • Foreign non-resident shareholders in a US LLC are subject to withholding tax. The tax rate will be 35%, if the shareholder is a corporate entity but if the shareholder is a foreign non-resident individual, the withholding tax will be 40%;
      • Passive income earnt in the United States, including dividends, interests, annuities, rents and royalties (Fixed, Determinable, Annual and Periodical Income) will be taxed at 30%;
      • A C-Corporation in the US will be doubly taxed i.e. the corporate income is taxed at the federal rate (15% – 35%), and subsequently, these distributions to shareholders will be taxed at either 35% or 40%.

    2. US federal tax regulations can be quite burdensome for foreign entrepreneurs because
      • US federal law mandates all members of an LLC to pay their share of tax annually, regardless of whether profits have been actually distributed to them. Hence, our Clients will have to pay tax even if they decided to re-invest the year’s proceeds in the business;
      • All non-resident foreign shareholders of a US company must file their income tax returns with the IRS (form 1040NR and form W-8BEN). The filing can be a laborious task as US tax law can be quite complicated and often requires the assistance of a tax consultant.

  • Best uses for a Massachusetts company

    1. Massachusetts is a hub for research and innovation because
      • In the 2014 Innovation Economy Annual Index, Massachusetts ranked 1st in the Union with regards to patents per capita. Furthermore, Massachusetts small business also won the highest number of federal innovation contracts per capita. In all, the report ranked Massachusetts with the highest degree of innovation in the Union;
      • R&D credits are available for companies which choose to establish their base of operations in the state. These incentives are available for both manufacturers and R&D companies. Special incentives are available for companies conducting research in the field of life science;
      • Massachusetts is home to some of the best universities in the world, including Harvard University and Massachusetts Institute of Technology. These universities have always been ranked highly as research institutions.

For more information, kindly refer to our page on disadvantages of USA company registration.

Company registration

  • Time to incorporate: One week
  • Cost to set up: US$6,532
  • Minimum capital: US$1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Registered agent: Yes
  • Resident director: No

Key facts

  • Corporate tax rate: 35%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: LLC

Contact us

For additional information on our company registration services in Massachusetts, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
client relationship officer - Grace