You must choose a legal structure before you register your firm. The sole proprietorship, LLC, and corporation are the three types of small enterprises that are most prevalent. Every structure has pros and cons, so it’s crucial to do your homework and pick the one that works best for your company.
After deciding on your organizational structure, you must register your firm with the Massachusetts Secretary of State. You can do this via mail or online. Depending on your type of business, there are different registration costs, but for the majority of small firms, the cost will fall between $125 and $500.
In addition to filing an application with the Secretary of State, you might also need to apply for a Boston business license. It’s crucial to do your study on the particular criteria for your business because the requirements for a business license differ depending on your sector and area. Is It Worth It to Get a DBA?
A DBA, or “doing business as” name, is a moniker you employ in place of your legal business name when doing transactions. Although DBAs are not required by law, they can be a helpful marketing and branding tool for your company. It is worthwhile to obtain a DBA if you want to conduct business using a name other than your legal business name. What Tax Benefits Can a DBA Provide?
Having a DBA has no direct tax advantages. However, using a DBA might make it simpler to track and differentiate between personal and company costs. This might lessen the likelihood of an audit while also making tax filing simpler. What are the Advantages of Having a DBA?
The main advantage of having a DBA is that it enables you to operate your business under a name other than your registered business name. This can help with branding, marketing, and giving your company a unique identity.
In Massachusetts, the cost of obtaining a DBA varies according on the city or town you reside in. The cost of a DBA in Boston is $50. Other towns and cities in the state, however, might charge more or less.
To sum up, registering your business in Boston is an essential first step in launching a new enterprise. By doing these actions, you can make sure that your company is accepted as a legitimate entity and is permitted to operate in the state. A DBA is not required by law, but it can be a handy tool for branding and marketing your company.
The Massachusetts self-employment tax rate is not mentioned in the article “Registering Your Business in Boston: A Step-By-Step Guide”. However, Massachusetts’ self-employment tax rate is 5.05% as of 2021. The Massachusetts Department of Revenue or a tax expert should always be consulted for the most recent information as tax rates and rules are subject to change over time.