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H 494

An Act reducing costs for microbusinesses

194th Legislature (2025-2026) Introduced by Orlando Ramos and 1 co-sponsor

Sets microbusiness filing fees in MA at $200 for certificate of organization and $200 for annual reports, lowering startup and ongoing costs for qualifying microbusinesses.

Accompanied a study order, see H5178
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Bill Summary · H 494

Summary of Bill H. 494: An Act Reducing Costs for Microbusinesses

Purpose and intent

  • The bill aims to reduce startup and ongoing administrative costs for microbusinesses in Massachusetts by adjusting filing fees. Specifically, it creates a targeted lower fee for microbusinesses when filing certain corporate documents.

Key provisions

  • Amends Section 12 of Chapter 156C of the General Laws (as appearing in the 2022 Official Edition).
    • Subsection 1: The fee for filing a certificate of organization for a micro business (as defined in subsection (a) of section 69 of Chapter 23A) shall be $200.
    • Subsection 2: The fee for filing the annual report for a micro business (as defined in the same subsection) shall be $200.
  • Definition reference: “Micro business” is tied to the definition in subsection (a) of section 69 of Chapter 23A, meaning the applicability is limited to entities meeting that definition.

Who is affected

  • Affected: Microbusinesses that file:
    • Certificate of organization
    • Annual reports
  • Non-microbusiness entities would be unaffected by these fee changes.

Financial and fiscal considerations

  • Direct impact: Establishes a $200 filing fee for microbusiness certificate of organization filings and a $200 fee for microbusiness annual reports.
  • The change would likely reduce initial and ongoing administrative costs for qualifying microbusinesses.
  • Revenue implications for the state are not specified in the text; the change would narrow the fee gap for microbusinesses versus other business sizes/entities.

Procedural and timeline details

  • Introduced: February 27, 2025
  • Referred to the Committee: Economic Development and Emerging Technologies (2/27/2025)
  • Legislative actions:
    • Hearing scheduled: June 5, 2025 (11:00 AM–1:00 PM, in A-2)
    • Senate concurrence noted
    • Reporting date extended: Monday, December 1, 2025 (extension announced 2025-08-21)
  • Related/alternative legislation: HD 2097 is listed as related and described as a replacement for this measure.
  • Status: The bill is moving through the standard committee process with an extended reporting timeline.

Potential impacts and considerations

  • Benefits: Lower entry/ongoing compliance costs for microbusinesses, which could support small-scale entrepreneurship and local economic activity.
  • Considerations: The overall effect on state revenue and administrative workload would depend on how many microbusinesses qualify under the Chapter 23A definition and on any subsequent changes to related fees or definitions.

This summary captures the essential purpose, provisions, affected parties, and procedural context of Bill H. 494 as introduced and tracked through the current legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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