How Much Does It Cost to Start a Business in Massachusetts?
Last updated: May 2026
Massachusetts Business Overview
LLC Filing Fee
$500
Sales Tax Rate
6.3%
Minimum Wage
$15/hr
Cost of Living Index
149.5
Workers Comp
Required
Annual Report Fee
$500
Starting a Business in Massachusetts
Massachusetts businesses register with the Secretary of State. Most cities and towns require local business licenses.
Massachusetts has a flat 5% income tax rate (increased to 9% on income over $1 million since 2023). The corporate excise tax is 8% plus $2.60 per $1,000 of taxable Massachusetts property.
Massachusetts has a highly educated workforce and strong tech and biotech sectors centered around Boston. Very high commercial rents and insurance costs require premium pricing strategies.
For official formation documents, visit the Massachusetts Secretary of State.
Startup Costs for 100 Business Types in Massachusetts
The table below shows estimated startup costs for every major business type, adjusted for Massachusetts’s cost of living index of 149.5. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $10,780 | $30,800 | $70,840 |
| Airbnb & Vacation Rental Business | Real Estate | $16,940 | $46,200 | $138,600 |
| Ambulance Service | Transportation & Logistics | $123,200 | $308,000 | $770,000 |
| App Development Company | Tech & Online | $15,400 | $46,200 | $123,200 |
| Architecture Firm | Professional Services | $30,800 | $84,700 | $200,200 |
| Auto Detailing Business | Automotive | $7,700 | $46,200 | $154,000 |
| Auto Repair Shop | Automotive | $115,500 | $308,000 | $770,000 |
| Bakery | Food & Beverage | $30,800 | $146,300 | $462,000 |
| Bar & Nightclub | Food & Beverage | $154,000 | $539,000 | $1,309,000 |
| Barbershop | Beauty & Personal Care | $23,100 | $100,100 | $269,500 |
| Beauty Supply Store | Beauty & Personal Care | $46,200 | $154,000 | $462,000 |
| Bookstore | Retail | $38,500 | $154,000 | $462,000 |
| Brewery / Microbrewery | Food & Beverage | $385,000 | $616,000 | $2,310,000 |
| Cannabis Dispensary | Specialty & Regulated | $191,730 | $511,280 | $1,917,300 |
| Car Wash | Automotive | $191,730 | $837,760 | $2,393,160 |
| Carpentry & Woodworking Shop | Construction & Trades | $16,170 | $43,120 | $107,800 |
| Catering Business | Food & Beverage | $18,480 | $81,620 | $200,200 |
| Chiropractic Office | Health & Wellness | $154,000 | $184,800 | $462,000 |
| Cleaning Business | Home Services | $2,310 | $16,940 | $56,980 |
| Clothing Boutique | Retail | $46,200 | $154,000 | $462,000 |
| Coffee Shop | Food & Beverage | $92,400 | $184,800 | $539,000 |
| Concrete Business | Construction & Trades | $38,500 | $100,100 | $231,000 |
| Consulting Business | Professional Services | $3,080 | $13,860 | $40,040 |
| Convenience Store | Retail | $77,000 | $431,200 | $1,155,000 |
| Courier & Delivery Service | Transportation & Logistics | $12,320 | $33,880 | $84,700 |
| Cybersecurity Firm | Tech & Online | $30,800 | $84,700 | $231,000 |
| Dance Studio | Childcare & Education | $30,800 | $123,200 | $385,000 |
| Daycare Center | Childcare & Education | $92,400 | $277,200 | $770,000 |
| Demolition Company | Construction & Trades | $46,200 | $123,200 | $308,000 |
| Dental Practice | Health & Wellness | $539,000 | $770,000 | $1,540,000 |
| Digital Marketing Agency | Tech & Online | $6,160 | $18,480 | $49,280 |
| E-Commerce Store | Tech & Online | $7,700 | $23,100 | $77,000 |
| Electrical Business | Home Services | $23,100 | $84,700 | $246,400 |
| Esthetics & Skincare Business | Beauty & Personal Care | $12,320 | $61,600 | $184,800 |
| Excavation Company | Construction & Trades | $77,000 | $200,200 | $539,000 |
| Financial Planning Practice | Professional Services | $30,800 | $84,700 | $200,200 |
| Flower Shop | Retail | $30,800 | $115,500 | $308,000 |
| Food Delivery Service | Food & Beverage | $15,400 | $80,080 | $200,200 |
| Food Processing Business | Food & Beverage | $308,000 | $385,000 | $1,155,000 |
| Food Truck | Food & Beverage | $69,300 | $184,800 | $308,000 |
| Freight Brokerage | Transportation & Logistics | $24,640 | $55,440 | $123,200 |
| Furniture Store | Retail | $77,000 | $308,000 | $924,000 |
| General Contracting Business | Construction & Trades | $30,800 | $84,700 | $200,200 |
| Ghost Kitchen | Food & Beverage | $30,800 | $92,400 | $231,000 |
| Gift Shop | Retail | $30,800 | $107,800 | $308,000 |
| Gym & Fitness Center | Health & Wellness | $77,000 | $385,000 | $1,540,000 |
| Hair Salon | Beauty & Personal Care | $23,100 | $115,500 | $385,000 |
| Handyman Business | Home Services | $3,080 | $15,400 | $50,820 |
| Home Health Care Agency | Health & Wellness | $61,600 | $200,200 | $462,000 |
| HVAC Business | Home Services | $30,800 | $107,800 | $308,000 |
| Ice Cream Shop | Food & Beverage | $30,800 | $115,500 | $308,000 |
| Insurance Agency | Professional Services | $23,100 | $61,600 | $138,600 |
| IT Services Business | Tech & Online | $23,100 | $61,600 | $154,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $38,500 | $138,600 | $385,000 |
| Landscaping Business | Home Services | $15,400 | $61,600 | $184,800 |
| Laundromat | Real Estate | $154,000 | $385,000 | $924,000 |
| Law Firm | Professional Services | $18,480 | $52,360 | $124,740 |
| Limousine & Car Service | Transportation & Logistics | $61,600 | $138,600 | $338,800 |
| Liquor Store | Retail | $77,000 | $277,200 | $770,000 |
| Marketing Agency | Professional Services | $7,700 | $27,720 | $77,000 |
| Martial Arts Studio | Childcare & Education | $30,800 | $107,800 | $308,000 |
| Meal Prep Business | Food & Beverage | $30,800 | $100,100 | $308,000 |
| Med Spa | Health & Wellness | $154,000 | $539,000 | $1,540,000 |
| Medical Practice | Health & Wellness | $231,000 | $616,000 | $1,540,000 |
| Mental Health Practice | Health & Wellness | $23,100 | $77,000 | $231,000 |
| Moving Company | Home Services | $46,200 | $154,000 | $462,000 |
| Music School | Childcare & Education | $15,400 | $77,000 | $231,000 |
| Nail Salon | Beauty & Personal Care | $30,800 | $138,600 | $385,000 |
| Painting Business | Home Services | $7,700 | $38,500 | $123,200 |
| Personal Training Business | Health & Wellness | $7,700 | $38,500 | $154,000 |
| Pest Control Business | Home Services | $15,400 | $61,600 | $184,800 |
| Pet Store | Retail | $46,200 | $154,000 | $462,000 |
| Pharmacy | Health & Wellness | $385,000 | $616,000 | $1,540,000 |
| Physical Therapy Clinic | Health & Wellness | $92,400 | $277,200 | $693,000 |
| Pizza Shop | Food & Beverage | $115,500 | $269,500 | $616,000 |
| Plumbing Business | Home Services | $23,100 | $77,000 | $231,000 |
| Podcast Production Company | Tech & Online | $3,080 | $9,240 | $27,720 |
| Preschool | Childcare & Education | $77,000 | $231,000 | $616,000 |
| Property Management Company | Real Estate | $16,170 | $36,960 | $84,700 |
| Real Estate Agency | Professional Services | $15,400 | $43,120 | $107,800 |
| Real Estate Investing & Rental Business | Real Estate | $38,500 | $115,500 | $385,000 |
| Restaurant | Food & Beverage | $269,500 | $577,500 | $1,155,000 |
| Roofing Company | Home Services | $23,100 | $92,400 | $277,200 |
| SaaS Company | Tech & Online | $30,800 | $92,400 | $308,000 |
| Spa & Massage Therapy | Health & Wellness | $15,400 | $107,800 | $385,000 |
| Staffing Agency | Professional Services | $30,800 | $84,700 | $231,000 |
| Storage Unit Facility | Real Estate | $308,000 | $924,000 | $3,080,000 |
| Tattoo Shop | Beauty & Personal Care | $30,800 | $90,860 | $308,000 |
| Tax Preparation Business | Professional Services | $5,390 | $15,400 | $41,580 |
| Thrift Store | Retail | $30,800 | $115,500 | $308,000 |
| Tire Shop | Automotive | $77,000 | $231,000 | $616,000 |
| Towing Company | Automotive | $77,000 | $231,000 | $616,000 |
| Trucking Company | Transportation & Logistics | $46,200 | $123,200 | $308,000 |
| Tutoring Business | Childcare & Education | $3,080 | $36,960 | $154,000 |
| Used Car Dealership | Automotive | $77,000 | $308,000 | $924,000 |
| Vape Shop | Retail | $38,500 | $115,500 | $308,000 |
| Web Development Agency | Tech & Online | $5,390 | $18,480 | $50,820 |
| Welding Business | Construction & Trades | $23,100 | $61,600 | $154,000 |
| Winery | Food & Beverage | $770,000 | $1,173,480 | $4,620,000 |
| Yoga Studio | Health & Wellness | $23,100 | $123,200 | $308,000 |
Most Popular Business Types in Massachusetts
Licenses & Permits in Massachusetts
General Business License
Massachusetts does not have a statewide general business license, but businesses must register their entity with the Massachusetts Secretary of State (Corporations Division) and register with the Massachusetts Department of Revenue for sales tax and employer tax purposes. Many Massachusetts cities and towns require local business certificates — Boston, Cambridge, Worcester, and other municipalities have their own licensing systems. The state offers a MassTaxConnect portal for tax registration.
Industry-Specific Licenses
- Food Establishment Permit — Massachusetts Department of Public Health or Local Board of HealthCost: Varies — contact agency • Renewal: Annual
- Home Improvement Contractor Registration — Massachusetts Office of Consumer Affairs and Business RegulationCost: Varies — contact agency • Renewal: Biennial
- Cosmetology Shop License — Massachusetts Board of Registration of CosmetologyCost: Varies — contact agency • Renewal: Biennial
- Real Estate Broker License — Massachusetts Board of Registration of Real Estate Brokers and SalespersonsCost: Varies — contact agency • Renewal: Biennial
- Child Care Program License — Massachusetts Department of Early Education and Care (EEC)Cost: Varies — contact agency • Renewal: Annual
- Common Victualler License and All Alcohol License — Massachusetts Alcoholic Beverages Control Commission or Local License AuthorityCost: Varies — contact agency • Renewal: Annual
- Marijuana Retailer License — Massachusetts Cannabis Control CommissionCost: Varies — contact agency • Renewal: Annual
- Transportation Network Company License — Massachusetts Department of Public UtilitiesCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Massachusetts cities and towns regulate home-based businesses through local zoning bylaws. Boston allows home occupations with restrictions on signage, customer visits, employees, and the proportion of home space used for business. Many Massachusetts communities restrict the types of businesses allowed as home occupations. Massachusetts's Chapter 40A amendments have expanded housing-based business opportunities, but commercial regulations vary widely by municipality.
Massachusetts Business Resources
SBA District Office
Massachusetts SBA District Office — Boston
Secretary of State
https://corp.sec.state.ma.usZoning Information
Massachusetts municipalities control zoning. Boston has an active planning department with zoning overlay districts, Article 80 large project review, and affordable housing requirements.
Health Department Notes
Food establishments require a permit from the local board of health. Boston has specific food safety requirements through the Inspectional Services Department.
Workers Compensation
Required for all employers. Massachusetts has one of the most complex workers comp systems in the US.