Massachusetts LLC vs Ohio LLC (2026)
Written for owners based in Massachusetts.
Verdict: for most owners, form where the business is based
Ohio charges $99 once and requires no periodic report at all, so five years costs $99 while Massachusetts collects $3,120. Ohio's commercial activity tax reaches only gross receipts above a $6 million annual exclusion, and the CAT annual minimum was eliminated for periods from January 1, 2024, so a small LLC owes nothing. Massachusetts likewise spares a default pass-through any entity-level tax, but charges $520 to file and $520 each year, $1,040 through year one. Register the Ohio LLC to work here and Massachusetts adds $500 to the total.
Based in Ohio? Read Ohio LLC vs Massachusetts LLC →
Compare Massachusetts LLC vs Ohio 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 | Ohio |
|---|---|---|
| Filing Fee | $500 by mail, $520 online (mandatory $20 expedite fee) | $99 |
| Processing Time | Not published by the state | 3 to 7 business days (paper) |
| Annual Report Fee | $500 by mail, $520 online | None |
| Annual Report Due | Anniversary date | None required |
| State Income Tax | Yes | Yes |
| 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 |
Full fee breakdown for either state: Massachusetts LLC cost and Ohio LLC cost. Owner privacy options for either state: Massachusetts anonymous LLC guide and Ohio anonymous LLC guide.
Business Climate: Massachusetts vs Ohio
| Factor | Massachusetts | Ohio |
|---|---|---|
| 5-year business survival rate | 52.7% (#18 of 51) | 54.4% (#8 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +11.9% YoY (#21 of 51 by volume) | +16.1% YoY (#8 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 Ohio
Massachusetts
Ohio
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 Ohio charges $99. Ohio is $421 cheaper upfront. The cost that usually gets overlooked: if you form in Ohio but operate in Massachusetts, you must also register as a foreign LLC in Massachusetts (a $500 filing) and maintain a registered agent in Ohio (typically around $150 per year). That puts the realistic first-year cost of the Ohio route at roughly $749, versus $520 for simply forming in Massachusetts. Only one side of this comparison is knowable: Ohio publishes a standard turnaround (3 to 7 business days, paper), while Massachusetts publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Massachusetts vs Ohio
Both Massachusetts and Ohio 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 Ohio 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). Ohio levies a personal income tax, but the Business Income Deduction exempts the first $250,000 and taxes business income above it at a flat 3%. 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. Ohio's Commercial Activity Tax (CAT) applies only to taxable gross receipts above $6 million (0.26%); smaller businesses owe no CAT.
Privacy & Asset Protection
Ohio allows anonymous LLC formation. Member and manager names don't appear on routine public filings. Ohio's Articles of Organization require only the organizer and statutory agent (no members/managers), and Ohio LLCs file no annual report. Massachusetts doesn't offer that same privacy. The certificate of organization and the annual report must both list the name and business address of each manager, if any, plus any person authorized to execute documents filed with the Corporations Division, so at least one manager or authorized person is always publicly disclosed. 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. One important caveat: if you register your Ohio LLC as a foreign LLC in Massachusetts, that Massachusetts registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Massachusetts.
Annual Maintenance Costs
Massachusetts LLCs file an annual report ($520, due in the anniversary month), and Ohio LLCs file no annual report at all. If you form in Ohio while operating in Massachusetts, you maintain filings in both states, Ohio asks for no report, but Massachusetts still wants its equivalent for your foreign registration, and pay an Ohio registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Ohio route to roughly $670 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. Ohio's Commercial Activity Tax (CAT) applies only to taxable gross receipts above $6 million (0.26%); smaller businesses owe no CAT.
When Ohio Actually Makes Sense
Forming in Ohio makes sense in a few specific situations: you need anonymous ownership. Massachusetts puts owner or manager information on public filings and Ohio doesn't (usually via a holding company, since operating in Massachusetts still requires a public foreign registration there), your business genuinely operates in Ohio, with a real office, employees, or property there, or you're relocating to Ohio in the near future. For a typical small business based in Massachusetts, none of these usually apply. Registering an Ohio LLC to do business back home means $500 in Massachusetts foreign-registration fees, on top of Ohio's $99 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.
- 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
- ohiosos.gov/businesses/Ohio Secretary of State: business entity filings
- codes.ohio.gov/ohio-revised-code/section-111.16Ohio 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.