Accounting / CPA Permits & Licenses in Lowell, MA

Required for all LLCs formed or registering to do business in MA. Annual report required separately.

All LLCs must file annually regardless of industry.

Individual requirement - at least one owner/principal performing attest services must be licensed CPA. Prerequisites: 150 semester hours education, 1 year experience, pass Uniform CPA Exam.

Required for any firm offering CPA services including attest (audit/review/compilation). Must have majority ownership by CPAs. Peer review required for attest firms.

Required if using trade name/DBA different from registered LLC name. Publish in local newspaper within 60 days.

CPA services generally exempt from sales tax in MA.

Accounting services are generally not taxable in Massachusetts unless bundled with taxable products. Confirm with DOR if any offered services are taxable. Registration is done via MassTaxConnect.

Registration is completed through MassTaxConnect. Applies to wages paid to employees working in Massachusetts, regardless of employer location.

Employers must register even if only one employee is hired. Employers pay UI taxes quarterly; new employers pay at the standard rate until assigned a merit rate.

Assigned automatically upon registration via MassTaxConnect for income tax withholding or sales tax. Not the same as federal EIN.

Not mandated by Massachusetts law for accounting businesses. However, often required by commercial leases, clients, or third-party contracts. Strongly recommended for protection against third-party bodily injury or property damage claims.

Massachusetts does not require a surety bond for CPA licensure or practice. CPAs are regulated by the Board of Registration of Accountants, which requires professional liability insurance but not bonding. No license bond or contractor bond is required for accounting services.

Required for any business-owned vehicle. Minimum liability coverage: $20,000 bodily injury per person, $40,000 per accident, $10,000 property damage. Applies to all registered motor vehicles, including those used for client visits or business travel.

Not required for accounting/CPA firms, as they do not manufacture or sell physical products. Not mandated by Massachusetts law for service-based businesses.

Only applicable if the business hosts events where alcohol is served. Standard for restaurants or event venues; not relevant to typical CPA firms. No requirement unless holding a liquor license or hosting alcohol-serving events.

Required for all LLCs, including single-member LLCs, that have employees or file business tax returns. Even if not required, most accounting firms obtain an EIN to open bank accounts and avoid using SSN. Specific to all businesses structured as LLCs.

LLCs are pass-through entities by default. A multi-member LLC files Form 1065 (U.S. Return of Partnership Income); a single-member LLC reports income on Schedule C of the owner’s Form 1040. Accounting/CPA firms follow same rules. Not industry-specific but mandatory based on structure.

Applies to owners of single-member LLCs treated as disregarded entities. CPA firm owners must pay self-employment tax on net business income. Standard for all self-employed individuals.

Required for all employers with employees in the U.S., including accounting firms. Includes posting OSHA workplace rights poster (available at https://www.osha.gov/posters/2002-poster.html). Office-based businesses have minimal hazards but must still comply with recordkeeping if 11+ employees.

Most LLCs are pass-through entities and not subject to franchise tax. However, if the LLC elects corporate taxation under Subchapter C, it must file Form 355C. CPA firms structured as pass-throughs typically file Form 355S with minimum $500 excise tax. See 830 CMR 2.11.1 for details.

All LLCs doing business in Massachusetts must file Form 355S and pay minimum excise tax of $500, regardless of income. Due annually with federal return. Applies even if no business activity.

Not all municipalities impose a business privilege tax. Examples: Boston requires a Business Registration Certificate; Worcester has a Business Occupation License. Contact local clerk’s office. Most cities do not tax professional service firms like CPA firms at the local level, but registration may still be required.

Single-member LLCs with no employees may use owner’s SSN, but obtaining an EIN is recommended for liability protection and banking. Apply online via IRS EIN Assistant.

Multi-member LLCs are taxed as partnerships by default and must file Form 1065 annually. Each member receives a Schedule K-1. Extensions require Form 7004.

Required for all businesses operating under a name other than the legal LLC name in Boston. File with City Clerk. Not required if using exact LLC name.

Accounting/CPA offices typically allowed in BU/Business or OS/Office Service districts. Confirm zoning district via ISD map: https://gis.boston.gov/imap/?app=zoning

Allowed if <25% of home used, no external signage, 1 non-resident employee max, no client visits that alter residential character (Boston Zoning Code Article 8, Sec. 8-1)

Submit plans via BOS:311 or online portal. Plumbing/electrical may require separate permits.

Freestanding/wall signs regulated by size, height, illumination per zoning district (Boston Zoning Code Article 9).

Standard small professional offices often exempt; confirm via BFD inspection (527 CMR 1.00 Massachusetts Fire Code).

Online registration required; excessive false alarms lead to suspension.

Confirms compliance with building, fire, zoning codes. Apply after passing inspections.

Professional offices exempt unless involving food handling or health risks.

Generally not required for professional services with low traffic impact.

Standard office use compliant with noise ordinance (Ch. 16-36 Boston Code).

Required for all employers with at least one employee, including part-time and family members. Sole proprietors are not required to cover themselves unless they elect coverage. LLC members may be exempt if they own at least 50% and file an exemption form.

Applies to all private entities offering services to the public, including CPA firms. Requires accessible websites, physical offices (if clients visit), and communication methods. Recent DOJ guidance emphasizes digital accessibility (e.g., WCAG 2.1). Not specific to accounting but applies broadly.

Not applicable to standard accounting/CPA firms. EPA regulations do not apply unless the business handles hazardous materials (e.g., chemical disposal, printing operations). Office-only CPA firms are exempt.

All businesses must ensure advertising is truthful, not misleading, and substantiated. CPA firms must avoid false claims about credentials (e.g., “best CPA in Boston” without proof). Applies to websites, social media, and brochures. Specific enforcement includes false endorsement claims or misrepresentation of services.

Requires payment of federal minimum wage ($7.25/hr), overtime (1.5x regular rate after 40 hrs/week), and proper classification of employees vs. independent contractors. Applies to CPA firms with staff. Misclassification of accountants or bookkeepers is a common audit risk.

Requires eligible employees to receive up to 12 weeks of unpaid, job-protected leave annually for qualifying reasons. Only applies to larger CPA firms meeting employee threshold. Not relevant for small firms.

As of January 1, 2021, all licensed CPAs and CPA firms in Massachusetts must maintain professional liability insurance with minimum limits of $100,000 per claim and $300,000 aggregate. Applies to sole practitioners and firms. Exemptions may apply for CPAs employed in-house by corporations or government. Source: 269 CMR 2.07(6).

CPAs must complete 80 hours of CPE every two years, including 4 hours in ethics. At least 20 hours must be in accounting, auditing, taxation, or related subjects. Self-study is allowed up to 40 hours. See 274 CMR 3.04.

Employers must file Form 941 each quarter to report federal income tax, Social Security, and Medicare taxes withheld from employee wages. This is a federal requirement for all employers.

Employers must file Form MA-941 or electronic equivalent. Filing frequency is determined by the DOR based on payroll volume. All employers must register with DOR upon hiring first employee.

Required for payments made to independent contractors. Must be filed electronically if more than 250 forms are issued. Form 1099-NEC is due to IRS and recipient by January 31.

Most accounting services are exempt from sales tax in Massachusetts. However, if the business sells taxable products (e.g., tax preparation software), registration and filing may be required. See 830 CMR 64H.1.

Self-employed individuals and LLCs taxed as pass-through entities must make estimated tax payments using Form 1040-ES. Payments are due quarterly.

Required for individuals and pass-through entities expecting to owe state tax. Use Form MA-1040ES.

Not all Massachusetts cities require a general business license. For example, Boston requires a business certificate renewal annually. Check with local clerk. This is separate from state professional licensing.

CPA licenses must be visibly displayed at the place of business per 274 CMR 3.03(3). This includes displaying the individual CPA’s license number and name as registered with the Board.

Employers must display federal and state labor law posters, including Minimum Wage, OSHA, EEO, and FMLA. Massachusetts requires additional posters such as Domestic Violence Leave and Equal Pay. Available for free download from DOL and DLS websites.

IRS recommends keeping business tax records for at least 3 years. Employment tax records must be kept for at least 4 years. Massachusetts follows similar guidelines. CPA firms should retain client records per professional standards (typically 5–7 years).

Commercial buildings are subject to annual fire inspection under Massachusetts Fire Code 527 CMR 1.00. The fire department issues a Certificate of Inspection. Frequency may vary by municipality.

A Certificate of Occupancy (CO) is required before occupying a commercial space. It may be inspected annually or triggered by changes in use. Contact local building inspector for local requirements.

Employers must file Form UI-3/CTW quarterly and pay unemployment insurance tax. All employers with employees must register with the DUA.

Most small accounting firms are exempt from OSHA recordkeeping unless specifically requested. However, all employers must report fatalities or serious injuries within 8 hours. See OSHA 29 CFR 1904.

All U.S. employers must verify identity and work authorization for employees using Form I-9. Applies to CPA firms with employees. Electronic versions allowed via authorized providers. Audits by ICE are possible.

CPA firms must register for IRS e-file (https://www.irs.gov/efile). Individual CPAs must have PTIN; firm must have EFIN. Not a license per se but mandatory for electronic submission. CPAs are federally recognized as tax practitioners with unlimited practice rights before IRS. No federal CPA license—licensing is state-based. This is the only federal-level requirement specific to tax preparation.

Most LLCs formed in the U.S. must file Beneficial Ownership Information (BOI) with FinCEN under the Corporate Transparency Act. Effective January 1, 2024. New entities have 90 days to file; existing entities have until January 1, 2025. CPA firms structured as LLCs are subject unless exempt. Exemptions include certain large operating companies, but most small CPA firms must comply. See https://www.fincen.gov/bo. This is a federal reporting requirement specific to entity structure, not industry.

LLCs in Massachusetts must file an annual report each year on the anniversary of their formation date. The report is filed through the Massachusetts Secretary of State's online portal. This applies to all LLCs registered in the state, including professional service entities like CPA firms.

CPA licenses must be renewed biennially by December 31 of odd-numbered years. Renewal requires completion of continuing education (see below). The renewal is managed through the Massachusetts Licensing Portal. See 274 CMR 3.05.