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funkygrrl OP t1_j9h2jd5 wrote

Reply to comment by ConceptualEconomist in Why Mass why? Highest LLC formation and annual fee rate in the USA by funkygrrl

I don't know about taxes.

In Mass:
Cost of LLC formation is $500 plus annual fee of $500.
Cost of S Corp formation is $275 minimum plus annual fee of $125.

In nearby Connecticut:
Cost of LLC formation is $120 plus annual fee of $80.
Cost of S Corp formation is $250 minimum plus annual fee of $150.

Connecticut is typical of most states. The cost of forming a corporation is higher than an LLC.

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ConceptualEconomist t1_j9ib91d wrote

There’s a lot of reasons it could be higher, maybe MA has a lot more going on in terms of auditing businesses. Maybe MA wants to incentivize people to be general S Corps because they understand that there’s virtually little difference outside of the protections afforded to LLCs.

Regardless, it’s not really that important in the grand scheme of things. $500 should be a drop in the bucket for LLCs for MA.

If you want to point to other states, then you should take into account other parts of MA compared to that state (higher COL, other of the many indicators pointing to MA as being a top living destination state).

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