Massachusetts LLC vs Delaware LLC (2026)
Compare Massachusetts LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Massachusetts | Delaware |
|---|---|---|
| Filing Fee | $500 | $90 |
| Processing Time | 3 day(s) | 7 day(s) |
| Annual Report Fee | $500 | $300 |
| Annual Report Due | Anniversary month | June 1 |
| State Income Tax | Yes | No |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$500 + registered agent ~$150/yr |
Verdict: Massachusetts wins for most businesses
For most Massachusetts-based small businesses, forming locally in Massachusetts is the smarter choice despite the higher filing fee. Delaware only makes sense if you need anonymous ownership, have sophisticated investors, or plan to go public eventually.
Filing Fees & Formation Costs
Delaware's $90 filing fee looks attractive compared to Massachusetts' $500, but this creates a misleading picture. If you form in Delaware while operating in Massachusetts, you must register as a foreign LLC in Massachusetts for an additional ~$500. You'll also need a Delaware registered agent (around $150 annually), making Delaware more expensive from day one.
Taxes: Massachusetts vs Delaware
Massachusetts imposes state income tax on LLCs, while Delaware has no state income tax for LLCs. However, if you operate in Massachusetts, you'll pay Massachusetts taxes regardless of where you formed your LLC. Delaware does charge an annual franchise tax (built into their $300 annual report fee), so the tax advantage is minimal for Massachusetts-based businesses.
Privacy & Asset Protection
Delaware allows anonymous LLC formation where member names aren't publicly disclosed, while Massachusetts requires member disclosure in formation documents. Both states offer strong charging order protection for single-member and multi-member LLCs. Delaware's privacy advantage is its main selling point, but only matters if anonymity is crucial to your business strategy.
Annual Maintenance Costs
Massachusetts charges $500 annually for LLC reports due in your anniversary month. Delaware's annual report costs $300 due June 1st, plus ongoing registered agent fees of ~$150. If you form in Delaware but operate in Massachusetts, you'll pay both states' fees annually, totaling around $950 per year versus $500 for a Massachusetts-only LLC.
When Delaware Actually Makes Sense
Delaware formation makes sense for Massachusetts businesses in specific situations: if you need anonymous ownership for privacy reasons, have investors who specifically require Delaware incorporation, plan to seek venture capital funding, or intend to go public eventually. For typical small businesses, sole proprietorships converting to LLCs, or local service businesses, the added complexity and cost aren't justified.