Massachusetts LLC vs New York LLC (2026)
Written for owners based in Massachusetts.
Verdict: for most owners, form where the business is based
New York's $200 filing fee and $9 biennial statement look modest, and its LLC filing fee on Form IT-204-LL starts at $25 for the smallest companies. The number nobody can quote you is publication: New York law requires notice once a week for six successive weeks in two county-designated newspapers, at rates the papers set, so no New York first-year figure is complete. Massachusetts has no publication duty and charges $520 to file and $520 a year. Add the $500 it costs to put a New York LLC on the Massachusetts register and home wins.
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Compare Massachusetts LLC vs New York LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Massachusetts | New York |
|---|---|---|
| Filing Fee | $500 by mail, $520 online (mandatory $20 expedite fee) | $200 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $500 by mail, $520 online | $9 (biennial) |
| Annual Report Due | Anniversary date | Anniversary month (biennial) |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | Yes |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $500 + registered agent ~$150/yr |
Full fee breakdown for either state: Massachusetts LLC cost and New York LLC cost. Owner privacy options for either state: Massachusetts anonymous LLC guide and New York anonymous LLC guide.
Business Climate: Massachusetts vs New York
| Factor | Massachusetts | New York |
|---|---|---|
| 5-year business survival rate | 52.7% (#18 of 51) | 51.9% (#23 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +11.9% YoY (#21 of 51 by volume) | +10.9% YoY (#4 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Massachusetts vs New York
Massachusetts
New York
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Massachusetts charges $520 to form an LLC, while New York charges $200. New York is $320 cheaper upfront. The cost that usually gets overlooked: if you form in New York but operate in Massachusetts, you must also register as a foreign LLC in Massachusetts (a $500 filing) and maintain a registered agent in New York (typically around $150 per year). That puts the realistic first-year cost of the New York route at roughly $850, versus $520 for simply forming in Massachusetts. Speed isn't a basis for choosing between them: neither Massachusetts nor New York publishes a standard processing time, so any figure comparing the two is guesswork. Note that New York also requires newly formed LLCs to publish a newspaper notice (New York requires publication of the LLC's formation once a week for six successive weeks in two newspapers designated by the county clerk, within 120 days of formation, followed by a $50 Certificate of Publication. Newspaper rates are set by the newspapers and vary sharply by county), which adds to the true formation cost.
Taxes: Massachusetts vs New York
Both Massachusetts and New York levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in New York doesn't change what a Massachusetts-based owner pays. Massachusetts taxes wage and pass-through income at 5.0%, plus a 4% surtax on taxable income above the inflation-adjusted threshold ($1,107,750 for tax year 2026). No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation. New York LLCs with any income, gain, loss or deduction from New York sources owe an annual filing fee of $25 to $4,500, unless they have elected to be taxed as a corporation. An LLC taxed as a partnership pays by its NY-source gross income for the preceding tax year ($25 where that is $100,000 or less), and a disregarded single-member LLC pays a flat $25.
Privacy & Asset Protection
Neither Massachusetts nor New York offers anonymous LLC formation: both states require owner or manager information on public filings. The NY LLC Transparency Act (effective 2026) requires beneficial-ownership reporting to the state, and formation requires newspaper publication of the LLC's existence. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Massachusetts LLCs file an annual report ($520, due in the anniversary month), and New York LLCs file a biennial report ($9, due in the anniversary month, every two years). If you form in New York while operating in Massachusetts, you maintain filings in both states, New York's report plus Massachusetts's equivalent for your foreign registration, and pay a New York registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the New York route to roughly $704 a year, versus about $520 to keep a domestic Massachusetts LLC in good standing. The taxes inside those totals: No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation. New York LLCs with any income, gain, loss or deduction from New York sources owe an annual filing fee of $25 to $4,500, unless they have elected to be taxed as a corporation. An LLC taxed as a partnership pays by its NY-source gross income for the preceding tax year ($25 where that is $100,000 or less), and a disregarded single-member LLC pays a flat $25.
When New York Actually Makes Sense
Forming in New York makes sense in a few specific situations: your business genuinely operates in New York, with a real office, employees, or property there, or you're relocating to New York in the near future. For a typical small business based in Massachusetts, none of these usually apply. Registering a New York LLC to do business back home means $500 in Massachusetts foreign-registration fees, on top of New York's $200 formation fee, while Massachusetts's own annual report runs $520 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- New York statute: LLC Law Section 206 (newspaper publication requirement)
- sec.state.ma.us/divisions/corporations/filing-by-subject/limited-liability/corporations-limited-liability-company.htmMassachusetts Secretary of the Commonwealth, Corporations Division: business entity filings
- sec.state.ma.us/divisions/corporations/download/Fee_Schedule.pdfMassachusetts LLC filing fees
- dos.ny.gov/forming-limited-liability-company-new-yorkNew York Department of State, Division of Corporations: business entity filings
- dos.ny.gov/fee-schedulesNew York LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.