Starting a Business in Massachusetts

If you are thinking of starting a business in Massachusetts there are a few simple steps you should take to protect yourself and your company.  First and foremost, decide on the proper business entity to start your business. Massachusetts has a few options which include, but are not limited to, the sole proprietorship, limited liability company, partnership, and full-blow corporation. Even if you think you have a "simple" business (you are the only employee and you work out of your house), choosing the proper business entity could protect you from liability.

Employees add another level of consideration when choosing a business form. Through the doctrine of respondeat superior, an employer is liable for the actions of their employees (with limited exceptions). Additionally, employers can even be held liable for actions of independent contractors in certain situations.

The type of business entity you select will have tax consequences.  Many times it is most advantageous to plan the form of your business around tax considerations. You can greatly reduce your tax burden by selecting the proper business form.

Other considerations when starting a business in Massachusetts are whether you are required to have any permits or licenses and how you can get a bank loan to get your business jump started.  Massachusetts has many different permits and licenses that certain businesses are required to hold.  Keeping your permits and licenses up-to-date should be a part of any business' long-term plan.  Additionally, many banks are willing to provide loans to start-ups if they present themselves correctly.  Part of your presentation to a bank or other investors should include a sound legal platform.

Here is a great link to resources that the Commonwealth has put together for start-ups in Massachusetts.

If you have any questions about starting a business in Massachusetts, do not hesitate to contact an attorney at Bohnet and Romani, P.A. www.Bohnet-Romani.com

Nothing in this blog constitutes legal or tax advice. Do not rely on any representations made in this blog before consulting a qualified attorney.

By: Attorney Geoffrey Farrington