What Business Licenses & Permits are Needed in Massachusetts?
Starting a in will mean potentially registering with a number of federal, state, and local agencies. Let’s take a look at common licenses and permits a will register for in .
Before applying for any licenses, the will need to be established. Learn more about the differences between the , general , , and (LLC). Corporations and LLCs will register with the of the Commonwealth.
Related: Comparison of Entities
Learn more about forming an LLC in Massachusetts
Also see: Steps to starting a business in Massachusetts
There is no general state of , however, many cities require businesses to be licensed in order to operate. Rules for registration vary depending on location and what the does. Below are a few cities that have .
Boston – All businesses need to apply for a with the Boston . This needs renewed every four years.
The filing fee for a Boston is $65.
Worcester – The of Worcester requires a for any operating within the limits. The for the is $50.
Springfield – All businesses operating in Springfield’s limits need to register with the Springfield for a . The cost of a is $50 and is good for four years from the date of .
Lowell – A is required for any company operating in the limits of Lowell. In addition to the , businesses with employees will also need to file a Workers’ Compensation Insurance Affidavit.
New Bedford – The issues Certificates for all businesses operating within the New Bedford limits.
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Building & Zoning Permits
Zoning – Depending on the location of the , it’s important to verify whether the needs an occupancy or has specific zoning regulations to follow. Depending on requirements, home-based businesses may need to apply for a home occupation .
Building – A building may be needed from the or county building and planning department if there is any construction or renovations to a facility.
Signage – Some municipalities require a before adding signage.
Sales Vendor Registration
Businesses selling products and some services will need to register for a Sales with the Department of Revenue.
Resale
Small businesses purchasing merchandise to resell will usually want to obtain a Resale in order to not pay sales for merchandise that is being resold to customers.
Occupational
A variety of occupations in the state are regulated and need to be registered before offering certain services. A few common professions that require licensing in include; plumbers, cosmetologists, electricians, home inspectors, and many more. Additional , fees, and for professions are available from the Division of Professional Licensure.
In addition to professional licenses, businesses in a variety of industries such as food establishments, daycares, and many others require licensing.
Employer Identification Number (EIN)
Many businesses will register with the Internal Revenue Service (IRS) for an EIN (also referred to as a FEIN, Federal Employer Identification Number, or Federal ID Number). The EIN is the equivalent for a Social Security Number for an individual. Corporations, Limited Liability Companies, Partnerships, and Sole Proprietorships with employees will all need to register for one. Sole Proprietorships without employees can use the owner’s Social Security Number.
There is no cost for an EIN, and it only takes a few minutes to get.
Doing As (DBA) Registration
While not a , it’s common for Sole Proprietorships and Partnerships operating under a name that is different from the full name of the owner(s) to register for a with the in the county where the is located.
These are some of the most common licenses, but there are far too many licenses and permits for us to keep track of. Before starting your , be sure to check with Hall, County , Chamber of Commerce, and/or Economic Developer in your area to get more regarding licensing.
4 Responses
Soon and very soon I will be starting a T shirt business from my apartment here in Massachusetts. I will be selling them on line . Do I need a Permit or
a license to do this ? And do I have to pay State and Federal tax ? Please contact me soon and let me know just what I need to do
Hi Basil
First off, you will need to form your business entity. The sole proprietorship is the easiest and least expensive, but if the business is sued, the owner is personally liable. I’m not an attorney, nor giving legal advice, but it would seem your legal risk could be pretty low selling shirts online. Learn about the different entities here – https://startingyourbusiness.com/comparison-of-business-entities/
Next, looking at licenses, typically, an online business requires fewer licenses than one with a physical storefront. The types of licenses will vary depending on your location, but to start with, I would look at:
– Local business license – Not all cities require one for a home-based business, so check with City Hall, County Clerk, Chamber of Commerce, and/or Economic Developer in your area to get more information regarding business licensing.
– Sales tax permit – Since you are selling a taxable product you will need to get a Sales Tax Permit from the Department of Revenue. Learn how to register – https://startingyourbusiness.com/how-to-register-for-a-sales-tax-permit-in-massachusetts/.
Be aware that a business may have to register for a sales tax permit in each state. Requirements vary, but most require registration once exceeding 200 transactions or $100k in sales per year to their residents.
Regarding taxes, you will need to pay state and federal tax on the profits of the business. The complicating factor is what legal structure you go with. This article may help give you some answers – https://startingyourbusiness.com/home-business-taxes/
Hope this helps. Let me know if you have any other questions!
I want to start a home improvement business ,I do work on the weekends because i work full time. I’am a union carpenter
and i don’t know what license i need
thank you for your help Carlos R
Hi Carlos – In addition to the general steps to starting a business in Massachusetts – https://startingyourbusiness.com/massachusetts/, a home improvement contractor will need to be registered through the state – https://www.mass.gov/home-improvement-contractor-registration-and-renewal. In addition, many cities also require a permit before making alterations to a building. Depending on the work you are doing, you would want to check with the city where the homeowner’s house is located before starting work.
Hope this helps! Let me know if you have any other questions.
Greg