How Much Does a Business License Cost in Massachusetts?

If you’re researching Massachusetts business license cost, the answers are unfortunately not as obvious as it may seem. 

Not only are there different types of licenses in the state, each with their own cost, but there are different fees connected to every region. To complicate matters even more, there may be a limited number of licenses allowed in any given area, with the price fluctuating based on demand. 

Here, we’ll look at the requirements in the Bay State, which ones you need, where to apply for the license, and, of course, the cost. This way, you don’t have to worry about which transaction will land you in legal hot water. 

Do you need a business license in Massachusetts?

Most likely, yes. If you’re starting a business in Massachusetts, you’ll need official documentation and approval. (This article covers not just official business licenses, but also permits, certificates, and official registrations, so you’re aware of the general obligations.)

For example, all businesses need to register with the Secretary of the Commonwealth and apply for a Sales and Use Tax Registration Certificate to ensure that owners can collect sales tax on all goods and services. Keep in mind that that is different than registering as a specific type of business, like a corporation or a partnership. 

You may also need a license to handle specific items, such as pharmaceuticals or alcohol. Or you may need a license if you offer certain types of services, such as healthcare, law, remodeling, or food. 

Finally, every town and city is allowed to make its own laws, with some enforcing more regulatory requirements on all businesses. This is just one reason why it’s so important to dig into licensing laws — because it’s rather easy to make an error. 

How much does a business license cost in Massachusetts?

If you’re searching for Massachusetts business license cost, the range between costs can be vast. 

Business licensing, certification, and registration costs can be anywhere from less than $20 to $500 or more. For example, a doing-business-as (DBA) registration, which simply allows your company to operate under a different name than your formal business name, is just $20 whereas a liquor license can cost well into the thousands. 

Your costs may vary based on not just your industry, but also where you operate. If you have multiple business locations, you’ll need to factor in how different neighborhoods regulate local businesses. One area may be surprisingly lenient and affordable while another region heavily relies on licensing fees to fund their local departments. 

Your Massachusetts business license requirements may also include renewal fees. For example, it’s currently $600 for a physician’s license in the state. Every two years, a physician will need to renew again at the same rate. 

As you can imagine, renewal fees may change from year to year, so if you’re one of the rare people who still writes checks, you’ll want to double-check your amounts before you renew your license(s). 

Types of business licenses in Massachusetts and their cost

The Division of Occupational Licensure governs the types of licenses in the state, regulating more than 500,000 entities and 100 trades and professions in Massachusetts:

City 

Licenses governed at the city-level can be anything from DBA registrations to food or beverage licenses. Please note that Massachusetts sets its laws by city as opposed to by county (or by city and county). So, the good news is that you’ll be able to stick closer to home if you have to visit the departments to acquire your local permits and licenses. 

State 

The state-level requirements depend on your business type, as there is no single state-wide business license. However, the Sales and Use Tax Registration Certificate is done at the state level, which does apply to all businesses. (More good news: the certificate in the Bay State is free). 

Federal Licenses 

You’ll only need a federal license if your business is regulated by the federal government (e.g., firearms, tobacco, etc.). Your business license cost at this level can vary widely based on your industry with rates and issuance is typically done at the state level. 

Type of Business License	Average Cost
Food services	$300
Liquor permits	$1,000
Local Operating license	$250
Contractors	$300
Physician	$600

Keep in mind that the ‘average’ cost for a small business license Massachusetts is just that: an average. As you scramble to get everything together before the big day, you don’t want to be blindsided by higher-than-expected fees. 

The types of businesses that require a license in Massachusetts

The types of businesses that require a license in Massachusetts ultimately depend on where you set up but generally include the following professions:

• Contractors 
• Electricians 
• Architects 
• Healthcare providers (including pharmacists, PAs, electrologists, etc.)
• Real estate brokers, appraisers, agents
• Hoteliers 
• Restaurateurs 
• Cannabis or marijuana purveyors, cultivators, and manufacturers
• Plumbers 
• Gas fitters 
• Refrigerator technicians
• Engineers 
• Social workers 
• Insurance agents 
• Financial advisors 
• Commercial drivers
• Personal care providers (including massage therapists and hairstylists)
• Educators
• Lawyers/Private investigators 

Renewing your business license in Massachusetts 

Renewal requirements are governed at the city level, with the associated costs and late penalties ranging based on location. For example, renewing an expensive liquor license may be just as expensive a year down the road, depending on the number of available licenses in the area and the demand for each available slot. 

In general, though, licenses last for more than a year (typically at least two years) and often cost less than $100 to renew. In very rare occasions, you may not have to renew at all. 

Conclusion

Starting a business is a never-ending list of questions and, unfortunately, these answers rarely come boxed up in neat packages. The chances that you’ll overlook something, whether it’s a permit or a deadline, is unfortunately high — especially when Massachusetts does everything at a regional level instead of issuing blanket laws for the state. 

Some cities, like Boston, may lay out all the information (including fees) in an easily digestible format. However, if you’re doing business in a less populated area, you may need to fight to answer even the most basic of fee questions. You may even find that those answers change depending on the person you speak to or the source you visit. 

It’s why it may help to ask for professional assistance, so you can make sure everything is buttoned up long before you ever officially bill your first customer — or take time to learn how to start an LLC in Massachusetts to understand every requirement from formation to licensing.

FAQ