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LLC fees in Massachusetts

Varies

Are LLC Fees Tax Deductible in Massachusetts?

Short answer: Yes, as a business expense: Massachusetts charges $500 ($520 online/fax) to form an LLC; ongoing: $500 annual report ($520 online). Annual report due on the anniversary of the formation date.

Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).

Records to keep: Keep the state filing receipt, proof of payment, and your LLC's formation and annual report confirmations.