My partner and I are within a week or two of opening an LLC in the state of MA. We are going to apply for a small business loan to open the LLC and for any additional start-up costs.
Based on your experience, how much should we plan on spending/borrowing to start a business in the State of Massachusetts??
Thank you for your help,
We can assume that if you were using an attorney then you would not be asking on here. So here's everything that you'll need if your doing it yourself https://www.sec.state.ma.us/cor/corpweb/corllc/llc...
I recommend ordering some of the Garrett Sutton books or audiobooks if you really want to learn the ins and outs.
Always with my best,
The cost of forming the LLC online in MA is $500 plus $20 fee. It will cost you $500 per year after that, or $520 if you pay online. You will then need an attorney to draft your operating agreement. Don't skip this step, as it is critical for banking, obtaining loans, and for defining the terms under which you and your partner dissolve in the case of a disagreement. Your attorney fees will range from $1000 to several thousand.
A point of information: If you don't know the answer to all the questions online when you form the LLC, you'll need your attorney to explain the options, so look for an attorney now.
Do not fall for the Nevada/Wyoming/Delaware/OtherFabulousState scam, you'll need to then register in two states and won't get the protection/savings that the salesperson promised you, because when you buy property in MA, then MA laws are the ones that matter.
Here is what I do when I form a new LLC and need an operating agreement:
- Draft some bullet points that are points of agreement, and points that need further discussion between the two partners.
- Discuss between the two of you and flesh out the agreement on the document. You are not trying to draft an agreement, simply communicating to your attorney what you have agreed on.
- Submit to your attorney, he/she will come up with further points that need discussion/decisions
- Discuss again, record your decisions and resubmit to attorney
- Repeat until the attorney has drafted an operating agreement that you both agree on (you can see that extensive discussion between the partners will save you in attorney costs)
Open a bank account (free or close to it) using the newly formed LLC certificate and operating agreement
Now you have a functioning company. Business cards, websites, social media presence: these are all simply marketing