 Massachusetts |  Delaware | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $605 | $195 |
| State filing fee | $520 | $110 |
| Typical approval time | 1–2 weeks | 2–3 weeks (expedite available) |
| What the state asks each year | Annual report $500 | Franchise tax $300 |
| Yearly state cost, about | $500 | $300 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $2,785 | $1,575 |
| State income tax on wages | Yes | Yes |
| Owners in the public formation document | Can be listed | Not listed |
| Newspaper publication after formation | No | No |
Massachusetts against Delaware
Advantages
- Faster approval: usually 1–2 weeks, against 2–3 weeks (expedite available).
Disadvantages
- Costs $410 more to form than Delaware.
- About $200 a year more to keep than Delaware (annual report $500).
- Owners can appear in the public state record.
Delaware against Massachusetts
Advantages
- Cheaper to form: $110 state fee against $520 in Massachusetts.
- Cheaper to keep: about $300 a year to the state, against $500 in Massachusetts.
- Owners are not named in the public formation document.
- The standard for companies that will raise money from investors, with a specialised business court (the Court of Chancery).
Disadvantages
- Slower approval: usually 2–3 weeks (expedite available).
Which one to choose
Choose Delaware if you plan to raise money from investors or set up a holding structure: that is what Delaware is for. For an online or service business owned from abroad, Massachusetts is usually the better fit.
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
Massachusetts or Delaware
Questions about this comparison
Is a Massachusetts or a Delaware LLC cheaper?
Delaware is cheaper to form: $195 all-in with us, against $605. Each year after, Massachusetts costs the state about $500 and Delaware about $300, plus $45 for the registered agent.
Which is faster, Massachusetts or Delaware?
Massachusetts usually approves an LLC in 1–2 weeks, Delaware in 2–3 weeks (expedite available). We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Massachusetts or Delaware?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair