 Massachusetts |  Texas | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $605 | $392 |
| State filing fee | $520 | $307 |
| Typical approval time | 1–2 weeks | 3–5 business days |
| What the state asks each year | Annual report $500 | Franchise tax report (no tax under threshold) |
| Yearly state cost, about | $500 | $0 |
| 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 | $572 |
| State income tax on wages | Yes | None |
| Owners in the public formation document | Can be listed | Can be listed |
| Newspaper publication after formation | No | No |
Massachusetts against Texas
Advantages
Nothing stands out against Texas.
Disadvantages
- Costs $213 more to form than Texas.
- About $500 a year more to keep than Texas (annual report $500).
- Slower approval: usually 1–2 weeks.
- Has a state income tax, though it normally only reaches income connected to the state.
Texas against Massachusetts
Advantages
- Cheaper to form: $307 state fee against $520 in Massachusetts.
- No yearly state fee (franchise tax report (no tax under threshold)), against about $500 a year in Massachusetts.
- Faster approval: usually 3–5 business days, against 1–2 weeks.
- No state income tax on wages.
- A large economy, and a name that reads well on an invoice.
Disadvantages
None against Massachusetts.
Which one to choose
Texas comes out ahead on both cost and speed: about $2,213 less over five years, and usually approved in 3–5 business days.
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 Texas
Questions about this comparison
Is a Massachusetts or a Texas LLC cheaper?
Texas is cheaper to form: $392 all-in with us, against $605. Each year after, Massachusetts costs the state about $500 and Texas about $0, plus $45 for the registered agent.
Which is faster, Massachusetts or Texas?
Massachusetts usually approves an LLC in 1–2 weeks, Texas in 3–5 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Massachusetts or Texas?
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