State guide · Massachusetts
Starting a Medical Practice in Massachusetts
What physicians need to know about Massachusetts's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
9% (5% flat + 4% surtax over $1M)
Min. franchise tax
Verify — MA corporate excise minimum $456
Med board registration
Required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Massachusetts physicians may form a Professional Corporation under M.G.L. Chapter 156A or a Professional LLC under Chapter 156C. All shareholders or members must be licensed Massachusetts physicians.
Filing is with the Massachusetts Secretary of the Commonwealth, Corporations Division.
- •Form a Professional Corporation or Professional LLC
- •All shareholders/members must be licensed Massachusetts physicians
- •File Articles of Organization with the Secretary of the Commonwealth
- •Register the entity with the Massachusetts Board of Registration in Medicine
- •File Annual Report with the Secretary of the Commonwealth
Corporate Practice of Medicine
Massachusetts recognizes a moderate Corporate Practice of Medicine doctrine. Lay ownership of medical practices is restricted. Fee-splitting is prohibited under the Medical Practice Act.
Tax Considerations
Massachusetts imposes a flat 5% personal income tax with a 4% Millionaires Tax surtax on income over $1M. Corporate excise tax has a $456 minimum. PTE election available.
- •Flat 5% personal income tax + 4% Millionaires Tax surtax over $1M
- •Corporate excise tax minimum: $456
- •Pass-Through Entity Tax (PTE) election available
- •6.25% statewide sales tax
- •Massachusetts Paid Family and Medical Leave (PFML) — payroll deduction
Massachusetts Board of Registration in Medicine
Massachusetts requires PCs and PLLCs practicing medicine to register the entity with the Board of Registration in Medicine.
- •Register entity with Massachusetts Board of Registration in Medicine
- •All shareholders/members must hold active Massachusetts medical licenses
- •Update Board on any change in ownership or officers
Employment Law Considerations
Massachusetts is one of the most employee-protective states. Mandatory paid sick leave under the Earned Sick Time Law, paid family and medical leave (PFML), and strict non-compete restrictions under the Massachusetts Noncompetition Agreement Act all apply.
- •Earned Sick Time Law: 40 hours/year for employers with 11+ employees
- •Massachusetts Paid Family and Medical Leave (PFML)
- •Massachusetts Noncompetition Agreement Act: garden-leave pay required for enforceability
- •Massachusetts minimum wage at $15/hour
- •Pay transparency requirements (Salary Range Disclosure Act effective 2025)
Heads up
The Massachusetts Wage Act (M.G.L. c. 149 §148) imposes mandatory treble damages and attorney fees for late or unpaid wages, with strict liability. Payroll mistakes carry significant exposure.
Official resources
Bookmark these official agency portals for Massachusetts entity formation, tax registration, and medical board information.
Looking for Massachusetts licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Massachusetts.
View Massachusetts licensing guide →Get the complete practice startup guide
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