As of June 9, 2025
If you run a business in Massachusetts, there are a few rules you need to follow every year to stay legal. Missing a step can lead to penalties or delays that hurt your business. This guide breaks it down, so you know exactly what to take care of.
File Your Annual Report
If you run an LLC or a corporation in Massachusetts, you need to file an annual report with the state.
This report tells the state that your business is still active and gives them updated info about your company.
Stay on Top of Your Business Taxes
Massachusetts businesses need to register with MassTaxConnect and use it to handle their taxes.
Common Taxes You Might Owe
- Sales and Use Tax: This applies if you sell goods or certain services. Learn more
- Withholding Tax: You’ll need this if you have employees. Learn more
- Corporate Excise Tax: This applies to most corporations and LLCs taxed like corporations. Learn more
You can find everything you need at MassTaxConnect.
If you’re looking for a professional tax and accounting team to help keep your business compliant, contact us today!
Get Workers’ Compensation Insurance
If you have employees, you’re required to have workers’ comp insurance. It doesn’t matter if they’re full-time, part-time, or temporary.
This insurance helps cover medical costs and lost wages if an employee gets hurt on the job.
More info: Workers’ Comp in MA
Register for Unemployment Insurance
If you have employees, you also need to register for Unemployment Insurance (UI) and file wage reports every quarter.
This helps your employees get temporary payments if they lose their job through no fault of their own.
Get details here: Unemployment Info for Employers
Hang Up Your Labor Law Posters
Massachusetts law says you need to post official labor law signs in a place where your employees can easily see them.
These posters include important info about minimum wage, safety, and rights at work.
You can get the posters here: Required Workplace Posters
Also check out the rules on hours and working conditions here: MA Employment Laws
Get a Certificate of Good Standing (If You Need One)
Sometimes you’ll need a Certificate of Good Standing to prove your business is in good shape. This can come up if you’re applying for a loan, bidding on a contract, or renewing a license.
You can request one from the state online:
Get your certificate here
Protect Customer Information
If your business handles personal info about Massachusetts residents (like names, addresses, or Social Security numbers), you need a Written Information Security Program (WISP) in compliance with 201 CMR 17.00.
It’s a plan that shows how you protect people’s info from data breaches.
The full rule is here: 201 CMR 17.00
Renew Licenses or Permits for Your Industry
Some businesses need special licenses depending on what they do. Make sure you keep yours up to date.
Common examples:
- Restaurants or food businesses
- Child care services
- Contractors and tradespeople
- Hair salons or beauty services
Visit your local City Hall Licensing Department for local requirements when registering your new business as they vary from town to town.
Follow Environmental Rules
If your business handles waste, chemicals, or anything that impacts the environment, you need to follow rules from the Massachusetts Department of Environmental Protection (MassDEP).
You might need special permits or regular environmental inspections.
Check out these links for more info:
Follow Zoning and Building Safety Rules
Even if your business has been running for a while, you still need to follow local rules for your building and location.
Here are some basics:
- By-Right Use: Some businesses are allowed in specific areas without needing special approval.
- Special Permits: If your business isn’t allowed by-right, you may need to apply for permission.
Learn more here: MA Zoning Laws
It’s a good idea to check with your local zoning office or city hall if you’re planning changes like renovations, expansion, or moving locations.
Keep Your Business Running Smoothly
These rules might feel like a lot, but they’re all part of running a business in Massachusetts. Staying compliant protects your company, your team, and your future plans.
At JBS Corp, we’re small business accounting professionals that help business owners stay on track with taxes, licenses, and everything in between. If you’re unsure about any of these steps or need help getting them done, reach out. We’re here to help you run your business with confidence.
