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HD 4313

An Act reducing limited liability company formation fees

194th Legislature (2025-2026)

Massachusetts Bill HD 4313 cuts LLC fees: certificate of organization and annual report from $500 to $150, saving $350 at formation and annually, boosting small biz filings.

Scheduled for the House Journal Addenda
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Bill Summary · HD 4313

Summary: House Bill HD 4313 — An Act reducing limited liability company formation fees

Overview

  • Bill number: HD 4313
  • Title: An Act reducing limited liability company formation fees
  • Purpose: Lower the fees charged by the Commonwealth for forming and maintaining a limited liability company (LLC) in Massachusetts.
  • Status: Scheduled for the House Journal Addenda
  • Introduced: January 29, 2025 (Filed January 23, 2025)
  • Legislative context: 194th General Court (2025-2026)

What the bill would change

  • The bill amends Section 12D of Chapter 156C of the General Laws (as appeared in the 2022 Official Edition).
  • It replaces the current fees:
    • Certificate of organization filing: $500
    • Annual report filing: $500
  • With new fees:
    • Certificate of organization filing: $150
    • Annual report filing: $150
  • In other words, both the initial formation filing and the annual report filing fees would be reduced from $500 to $150 each.

Key provisions (proposed language effect)

  • The required filing fee for the certificate of organization (subsection (a)) would be $150.
  • The required filing fee for the annual report (subsection (c)) would be $150.
  • The language explicitly strikes the old $500 amounts and inserts the new $150 amounts.

Who is affected

  • Primary: Massachusetts LLCs and prospective LLC formations.
  • Affected entities: Individuals and businesses filing for LLC formation (certificate of organization) and those submitting annual reports; the Massachusetts Secretary of the Commonwealth, Division of Corporations, which administers LLC filings.
  • Broader impact: Potentially reduced administrative costs for small businesses and startups choosing to organize as LLCs in Massachusetts.

Fiscal and practical impact

  • Direct cost reduction per entity:
    • Formation: savings of $350 at formation
    • Annual reporting: ongoing savings of $350 each year
  • Potential indirect effects:
    • Could influence the number of LLC formations or filings due to lower compliance costs
    • May affect state fee revenue from LLC registrations and annual reports
  • The bill does not include an explicit fiscal note in the provided text.

Procedural and timeline notes

  • Introduced and filed: January 23, 2025
  • House docket status: HD 4313 scheduled for the House Journal Addenda as of January 29, 2025
  • Legislative path: As a proposed act, it would typically move through committee review, potential amendments, and votes in both chambers before potential enactment.

Bottom line

HD 4313 seeks to reduce the cost of forming and maintaining an LLC in Massachusetts by slashing the certificate of organization and annual report filing fees from $500 to $150 each. If enacted, this would provide immediate and ongoing cost savings for LLC owners and could influence the volume of LLC activity in the Commonwealth.

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

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