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How to Start a Business

Planning Stage 

The Commonwealth has a general guide for starting a business in Massachusetts. Below are resources to explore before starting your business in Medford:  

  • Access FREE training and counseling. There are several resources to look to when starting your business. First, the Massachusetts Office of Business Development is a central place for businesses with access to resources, expertise, and incentive programs. Visit the Business Front Door to be connected with the latest resources for businesses in Massachusetts.  Massachusetts Small Business Development Center offers free business advising and SCORE is another resource for peer-to-peer consulting.  

  • Conduct market research. Please see our market information and demographic data for Medford. For additional assistance, reach out to the Medford Public Library’s librarians.  

  • Write up a business plan. Business plans are a roadmap for each stage of starting and managing your business. These are often needed for financing or leasing space. The Medford Public Library has Gale Business Plan Builder, an interactive guide to building a business plan. The U.S. Small Business Administration offers templates for different business plan formats.   

  • Choose your business structure. There are four common business types or structures in Massachusetts.   

Business Structure Ownership Liability Taxes
Sole proprietorship One person Unlimited personal liability

Self-employment tax

Personal tax
Partnerships Two or more people Unlimited personal liability unless structured as a limited partnership

Self-employment tax (except for limited partners)

Personal tax
Limited liability company (LLC) One or more people Owners are not personally liable

Self-employment tax

Personal or corporate tax

Corporations (C-Corp, S-Corp, benefit corporation, nonprofit)

 One or more people. Different corporation types may have restrictions. Owners are not personally liable

Corporate tax (C-Corp & benefit corporation)

Personal tax (S-Corp)

Tax-exempt, profits non-distributable (nonprofit)

Source: U.S. Small Business Administration, Choose a Business Structure.  

► Seek professional advice. Please note that this information is for informational purposes only. The City recommends that all prospective businesses consult an accountant, banker, lawyer, and insurance agent to obtain financial, legal, and other professional advice.  

Action Stage 

There are five key steps to opening the business in Medford.  

Please note: The actual steps may vary based on the specific business structure.  

Quick Start: Below are general guidelines from the Commonwealth.  

  1. Select your business name. Search for a business entity to make sure the business name you want is available. This does not apply if you are a sole proprietor operating a business under your own name.  
  2. Selecting a physical site. If your business will have a brick-and-mortar location, make sure to check the zoning ordinances of the specific site. Checking the zoning in Medford involves a few simple steps.  
    • First, review the zoning map and zoning ordinance.  
    • Second, attend office hours with the building department to understand how to do properly permit renovations and get your site ready for business.  
  3. Get your Medford business certificate. Businesses in Medford operating under a name besides the owner’s legal name must register a “doing business as” business certificate in Medford. The purpose of the business certificate is to protect consumers and creditors by publicly providing information about who owns a business.  

  4. Register for an EIN. Register for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). You may also hear it called a Federal Tax Identification Number. Please note: Sole Proprietorships without employees do not need an EIN.  

  5. Create a MassTaxConnect account. Does your business collect and pay taxes to the state? If so, you will need to create a MassTaxConnect account. You can pay business taxes to the Department of Revenue through MassTaxConnect. 

Want additional assistance?  

► Contact Kayla Myros, Economic Development Planner at 781-393-2480 or kmyros@medford-ma.gov