How to Get a Massachusetts Business License

Do you need to get a business license in Massachusetts? 

There’s no one-size fits-all-solution when it comes to business licensing requirements. Whether you need a business permit or license in Massachusetts primarily comes down to the following factors: 

• Business size or operating hours. More employees or extended operating hours can trigger additional compliance coverage. For instance, in the Town of Belmont requires businesses operating before 6 a.m. and after 11 p.m. obtain an extended hours permit. Also, certain licenses like a tax or franchise license, are often tied to a specific revenue threshold. 
• Business industry. Certain professions, like nurses, plumbers, and financial advisers, are highly regulated and require licenses issued by state regulatory boards. In the same way, industries like tobacco and aviation are overseen by the federal government and require green lights from federal agencies. 
• Business structure. Each structure provides a different level of personal liability protection, therefore impacting licensing needs. Also, the business structure impacts tax obligations, which may impact licensing required to meet tax compliance requirements. 
• Business location. A home-based or online business may not be subjected to the same Massachusetts permits and licenses as a manufacturing factory or a business operating from a commercial space. 

Massachusetts state licenses

Massachusetts doesn’t have a state-level general business license requirement. Most businesses, however, are required to get a Massachusetts Sales and Use Tax Registration Certificate. This sales tax license, given by the Massachusetts Department of Revenue (DOR), allows businesses to collect sales tax of 6.25% on tangible goods and services sold. 

Massachusetts issues state-based professional licenses. So anyone providing specialized services, like an accountant or a tattoo artist, needs to have the appropriate professional license or permit to operate in the state. For instance, engineers in the state must obtain their professional license through the Massachusetts Board of Professional Engineers. 

The Commonwealth of Massachusetts (by way of the Massachusetts Secretary of State) also oversees the licensing of regulated goods like tobacco, alcohol, cannabis, and firearms. The state-based licenses could be issued by different authorities depending on whether you’re a manufacturer, distributor, or retailer. For example, the state’s Alcoholic Beverages Control Commission (ABCC) directly issues licenses to wineries, breweries, and alcohol-transport related businesses, while licenses for local grocery stores and restaurants are handled by the local governing body. 

Local licenses 

Local licensing requirements vary significantly amongst the state’s 351 cities and towns—and again, it depends on what your business does, its size, and its exact location. For instance, the city of Boston has its own licensing and permit procedure for a wide range of small businesses—from food trucks and bowling alleys to grocery stores. Similarly, Cambridge requires licenses for peddlers, fortune tellers, and second-hand goods stores.

Some common licenses and permits you may need from local governments include:

• Sign permit
• Zoning permit
• Alcoholic beverage or liquor license

Federal licenses

Certain businesses need federal licenses issued by federal government agencies. Commercial fishing, finance and insurance, liquor, mining, tobacco, transportation, and broadcasting are some of the industries regulated at the federal level. The U.S. Small Business Administration (SBA) has detailed information on which federal agencies are in-charge of issuing federal licenses. 

How to get a business license in Massachusetts in 5 steps

Follow these steps to understand the licensing obligations for your Massachusetts business.

Step 1: Form your Massachusetts business

Before diving into the licensing process, you need to have a legitimate business. Starting a business in Massachusetts involves picking an available business name that meets the state’s naming requirements. For starters, you can find a unique, memorable, and legally compliant business name using LegalZoom’s AI-powered business name generator.

Once you settle on a name, you can check the name’s availability by conducting a business name search.

It’s equally essential to decide on a business entity structure—for instance, an LLC, corporation, or general partnership. A business attorney can help you evaluate which business structure suits your business’ needs and goals. 

Once you’ve identified your business structure and name, you’re ready to formally file your business registration paperwork with the Secretary of the Commonwealth of Massachusetts.

Step 2: Get an EIN from the IRS

Many licensing authorities need your federal tax identification number to process your license application. Your employer identification number (EIN) is a nine-digit number issued by the Internal Revenue Service that identifies your business for tax purposes and enables you to hire employees and open a business bank account. 

LegalZoom saves you the hassle of preparing and filing an EIN application with the IRS. We will complete the form on your behalf and get back to you with your official EIN confirmation. 

Step 3: Apply for Sales and Use Tax Certificate and other state-issued licenses

Once you have the EIN you can start applying for state-based licenses—the most important being the Sales and Use Tax Registration Certificate. To obtain a Sales and Use Tax certificate, you must register your business with MassTaxConnect. 

You can check the professional licenses you may need through the state’s Division of Occupational Licensure (DOL) website. The division, which falls under the Office of Consumer Affairs and Business Regulation, establishes the professional licensing requirements for 26 professional boards.

If your business impacts the environment in any way, you need to contact the Massachusetts Department of Environmental Protection (MassDEP). Here’s a real-world example: Say your manufacturing facility releases wastewater into a river as part of normal operations. In this case, you will need a National Pollutant Discharge Elimination System (NPDES) permit from MassDEP.

Step 4: Obtain local licenses and permits

Local licenses and permits can be secured through your county or city government. In Boston, you can get your business certificate (which is your general business license) from the City Clerk's office for $65. For the City of Springfield, you can secure the required licenses from their designated Licensing Department at City Hall, Room 305, 36 Court St., Springfield, MA 01103, Mon–Fri between 8:30 a.m.–4:30 p.m. ET. 

The Commonwealth of Massachusetts keeps a directory with links to each city’s government website—a great place to start your search for license and permit information at the local level. 

Step 5: Apply for applicable federal licenses 

Federal business licenses need to be obtained from their respective federal agency. Say you operate a fish processing plant in MA, it’s likely that you’ll need a license from the National Oceanic and Atmospheric Administration (NOAA) Fisheries Service. 

After getting a Massachusetts business license

Your job doesn’t end at just securing the licenses. For starters, some licenses, permits, and certificates are required to be displayed openly in your business location. In fact, Massachusetts law mandates that your Sales and Use Tax Registration Certificate be displayed on your business premises. 

It’s also your responsibility to keep the acquired business licenses renewed and updated. Say your business has moved to a new area or you’ve decided to formally register as a limited liability company from a sole proprietorship, you’ll need to inform the appropriate licensing authorities about those changes. 

Getting an MA business license the easy way

Licenses and permits can get complicated, especially because your business could require multiple permits from different governing bodies. And, there’s a lot at stake here—your business’ credibility, profitability, and longevity. Investing in a professional license service can make fulfilling your Massachusetts business license requirements simpler while giving you the confidence that you’re operating your business by the law.  

LegalZoom’s business license lookup service prompts you to answer a few questions about your business, such as business purpose, location, and size, and will get back to you with a customized list of licenses and permits you’ll need in MA. We’ll also provide registration instructions and notify you of upcoming renewals and requirement changes.

FAQs

How much does a business license in MA cost? 

The cost can differ based on the kind of license needed and the business you have. There is no cost to obtain the state’s Sales and Use Tax Registration Certificate. However, other costs are dependent on the city. For instance, Cambridge charges anywhere between $25–$100 for a plumbing permit. Worcester City’s license and permit fees range from $10–$250.

Certain licenses, like a new Alcoholic Beverages Retail License, have a standard application fee, but there could be varying costs for other components of the permit. Here’s an example: The fee for a new Alcoholic Beverages Retail License is standardized across the state at $200, but there are additional filing, hearing, and advertising fees, which again vary from city-to-city. 

How long does it take to get a Massachusetts business license? 

Processing times vary significantly—you could get your license immediately, within a day, or after weeks. A lot depends on what license you’re applying for and where. For instance, in the City of Boston, certain licenses and permits can take up to two weeks to get an approval. The timeline to get an alcoholic beverage retail or liquor license is four to 12 weeks, as the process involves a hearing and an advertising component. A fortune-teller's license in Cambridge can take anywhere between four to six weeks.   

How many licenses do I need for my business? 

Each situation is unique. Your license and permit needs will vary depending on where your business is located, the business activity you’re conducting, and how regulated the industry is. A hair salon in Worcester may require as many as six Massachusetts licenses, whereas a food truck operator in Springfield, MA may need five licenses or permits. A marketing firm may need only one or two.

What’s the penalty for not having a Massachusetts business license? 

Not having the right Massachusetts licenses and permits can taint your company’s reputation and result in financial challenges like fines from the Massachusetts Secretary of State or Department of Revenue. Failure to get or maintain a license may even force you to shut shop in the state. 

Does Massachusetts require a general business license?

In Massachusetts, general business licenses aren't issued at the state level. But your local county or city may require you to secure a general business license or permit to legally operate. 

What information do I need for a Massachusetts business license?

Before you get down to applying for a license, make sure you have the following details handy:

• Massachusetts LLC or corporation name
• EIN
• A physical business address
• Business structure 

Can you sell things in Massachusetts without a sales tax license? 

You can't, unless you are exempt from the sales tax requirements. Massachusetts state law requires most businesses providing taxable goods or services to be registered with the Massachusetts Department of Revenue and collect the appropriate tax.