Professor Evan Darryl Walton and Massachusetts Law School Clinicians Advocate for Landmark LLC Fee Reduction

05.30.2026 — Massachusetts LLCs currently pay $500 annually just to exist as a state-recognized entity — one of the highest fees in the country — creating real barriers for aspiring entrepreneurs from disadvantaged backgrounds or those starting businesses out of economic necessity. Governor Maura Healey '98 is working to change that in a sweeping new economic development bill. Professor Evan Darryl Walton recently co-authored and submitted written testimony to the Massachusetts Joint Committee on Economic Development and Emerging Technologies in support of Section 98 of H.5386: An Act Relative to Massachusetts Winning Global Investment, Talent, and Innovation (the “Mass Wins Act”), joining clinical directors and instructors from across Massachusetts law schools in advocating for small business owners.

“Having worked directly with small business clients, I have seen the negative impact that the current fees have and the real barriers that they present to aspiring entrepreneurs,” said Walton, director of Northeastern Law’s Community Business Clinic. “I believe this fee reduction would make a meaningful difference for the communities served by our clinic and well beyond.”

The Mass Wins Act is a sweeping economic development bill proposing $305 million in capital authorizations and over 150 policy sections aimed at strengthening Massachusetts' business competitiveness. Section 98 would lower the LLC formation fee from $500 to $100 and reduce the annual report fee during the first four years of existence, saving each new LLC $1,000 during that time.