How to start a real estate business in Massachusetts (2026)
Everything a new real estate business in Massachusetts needs in the first months: registration, licenses, taxes, insurance and the yearly deadlines, with official links.
1. Register your business
Most owners form an LLC with the Massachusetts Corporations Division. Once it's registered, find it here to claim a free website and see your exact dates.
2. Licenses
Massachusetts requires a license to work as a real estate agent or broker, and in most states the brokerage company itself must be licensed too. New agents work under a licensed broker.
Your city or county may also require a general business license or tax receipt.
3. Taxes
Get a free EIN from the IRS first. How. Register with Massachusetts before your first taxable sale. Register in Massachusetts
If you expect to owe $1,000 or more in federal tax for the year, you pay estimated tax four times a year.
Massachusetts's yearly report
An annual report is due by your formation anniversary date each year. The state fee is about $500.
Example: an LLC formed today would have its first one due Oct 4, 2027.
Your first-month checklist
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Check your license and brokerage registration
Massachusetts requires a license to work as a real estate agent or broker, and in most states the brokerage company itself must be licensed too. New agents work under a licensed broker.
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Get errors and omissions (E&O) insurance
Errors and omissions insurance covers claims that you made a mistake in a deal. Many brokerages require it, and some states do too. See options
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Get your EIN
Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free
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Open a business bank account
Keeps the company's money separate from yours, which is what protects your LLC. See options
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Set up bookkeeping
Track every sale and expense from day one so taxes take hours, not weeks. See options
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Plan for taxes on commission income
Commissions usually come with no tax taken out, so set aside money for quarterly estimated taxes. See options
What insurance costs
| Coverage | Median per month |
|---|---|
| Errors and omissions (E&O) | $68 |
| General liability | $40 |
| Workers' compensation | $50 |
| Cyber insurance | $129 |
Source: Insureon, Feb 2025. Your price depends on your work, location and history.
Other trades in Massachusetts
Sources: state agency sites linked above; annual report rules compiled from state sites (checked Oct 2026). Rules change, so confirm with the agency before filing.