Massachusetts is No Longer Accepting FEIN

Beginning January 1, 2015, the Corporations Division in Massachusetts is no longer accepting FEIN numbers (federal tax IDs) on business formation documents.

The following notice was posted on the Corporations Division website:

“As of January 1, 2015, the Corporations Division will no longer accept an FEIN number in conjunction with the organization, formation or registration of any new business entity filing. If an FEIN number is included on a new business entity filing it will be redacted and a nine digit state ID number assigned. With regard to business entities that have previously included their FEIN number on Division filings, the Division will redact the number upon written request to preclear AT sec.state.ma.us.”

Massachusetts has provided additional clarification. If you are forming a domestic entity, or foreign qualifying, your filing will be rejected if you include a FEIN on your faxed or mailed application. At this time, amendments, mergers, and other filings that call for a FEIN will not be rejected, but the state plans to phase that out as well.

Why is Massachusetts doing this?

Massachusetts is replacing entities’ FEINs with a state-issued number instead. Additionally, obtaining a FEIN before forming a domestic business seems a bit backwards to us, and the state might agree. Whatever the case may be, be sure to exclude this piece of information on your filings.

New Massachusetts State Forms Coming Soon

The state has revealed its plans to release forms without the FEIN field, and surely some other changes. However, they have not provided a timeline for their release. When they are released, you, dear reader, will be among the first to know!

What does this mean for my business?

By eliminating this piece of information, hopefully the Secretary of State has made it easier for you to start a business in Massachusetts. However, until the new forms come out, remember to exclude your federal tax ID from the existing forms. Failure to abide by the state’s guidelines will result in rejections and delays for your business.

The good news is that Harbor Compliance is among the first to hear about changes to state requirements. If you don’t want to deal with confusing state rules, let our filing experts start your business for you! Check out our incorporation and LLC formation pages for more information!