Galvin warns of revenue hit from Healey’s business filing proposal

Ask your Senator to support S. 1114 and S. 1124 for Clean Slate legislation because an old CORI should not mean a lifetime of blocked opportunities.

Gov. Maura Healey’s proposal to reduce limited liability company fees would “obliterate a reliable and ever-growing revenue stream,” Secretary of State William Galvin warned in a letter to her office just before she filed an economic development proposal.

Healey testified in front of the Legislature’s Joint Committee on Economic Development this week and defended the proposal, which includes a cut to the fee for starting a new LLC to $100 from $500. Businesses would also see discounts for first, second, and third annual reports.

A representative from Galvin’s office voiced opposition to the proposal at the May 19 hearing. But Galvin had also sent a letter on April 15, the day before Healey formally filed the legislation. 

In the letter, Galvin noted that the change would affect revenues amid a challenging fiscal outlook. “In Calendar Year 2025, domestic LLCs filed 198,632 annual reports, generating $99,316,000 for the Commonwealth’s coffers. Domestic corporations currently add another $61,239,888 to that pile through the excise tax,” he wrote. “If we were to cut the fee in half, not only will we cut LLC revenue in half, we will forgo most if not all of that corporate excise tax revenue as the vast majority of domestic corporations reorganize to the lower fee. “

Galvin’s office has a corporations division that handles the state’s business entity laws and keeps records for businesses. A database of the businesses is searchable and accessible to the public.

He noted there have been past bills seeking to reduce the fee, based on the argument that the fee hurts the formation of new businesses. “I roundly reject that rationale: with the exception of a slight dip during the pandemic, the Massachusetts economy has enjoyed an increase year  over year in LLCs organized or registered in the Commonwealth,” he wrote.

Galvin also pointed to states such as Colorado dealing with a spike in fraud through business filings. “I understand the notion that lowering fees is intended to bolster Massachusetts’ reputation as a good place to do business, but in reviewing the impact of lowered fees in other states, it is clear that it lowers the bar for fraudsters,” he wrote.

Jim Rooney, head of the Greater Boston Chamber of Commerce, said in his testimony to the Legislature that his group backs Healey’s proposal, but wants lawmakers to go further than just reducing the initial filing fee. Both the LLC filing and annual report fees should go down to $100, he wrote, because “Massachusetts currently has the highest LLC filing fee and among the highest annual reporting costs in the nation, far exceeding neighboring states including New York, New Hampshire, Vermont, Connecticut, and Rhode Island.”

Healey told MASSterList on Thursday she stands by her proposal  “I want to lower costs to do business here in the state, so I filed that, because I want to slash fees for what it costs to start a business here. I think that's really important,” she said. “We’ve got to support our businesses, our small businesses. I want more startups, and reducing the filing fee, slashing the filing fee, which is what I think should happen, is one way to help.”

Thanks to all who sent their guesses at how much delegate support Seth Moulton will get at the Democratic state convention next week. Aside from the matchup between Moulton and Ed Markey, what are you looking for, if you’re going? Let me know: [email protected].

Mass General Brigham is committed to world-class care backed by the latest advances in medical research. Innovation across our system delivers the best possible outcomes and enhances the patient experience.

10:00 | NCAA President Charlie Baker is the featured speaker as the College of the Holy Cross graduates its 180th class. Baker and Tim Garvin, president and CEO of the United Way of Central Massachusetts, will receive honorary degrees during the commencement ceremony. | DCU Center, Foster Street, Worcester

11:00 | State and local officials join community partners to declare the first-annual Massachusetts Biodiversity Day and celebrate progress towards biodiversity conservation goals. Organizers also plan to celebrate grants for projects in the Worcester area led by EcoTarium and Regional Environmental Council. Participants include Energy & Environmental Affairs Undersecretary Stephanie Cooper, DFG Commissioner Tom O’Shea, and EcoTarium President Noreen Johnson Smith, among others. | EcoTarium, 222 Harrington Way, Worcester

12:00 | Middlesex Sheriff Peter Koutoujian will administer the oath of office to 18 new correction officers completing the 54th Basic Training Academy, the 20th graduating class of Koutoujian's 15-year tenure leading the Middlesex Sheriff's Office. | Winchester Town Hall, 71 Mt. Vernon St., Winchester

1:30 | Gov. Maura Healey joins Boston Mayor Michelle Wu and Housing Secretary Juana Matias to announce nearly $25 million in CommonWealth Builder awards for four projects that will create more than 100 affordable homes for first-time homebuyers in historically underserved communities. | Outside of 27-29 Hancock St., Boston

Jobs continue below the fold — post a job

The YMCA of Greater Boston has tapped former Jamaica Plain Sen. Sonia Chang-Diaz as its chief external affairs officer, a newly created position. The organization, which goes by YGB, is celebrating 175 years, having launched in Boston as America’s first YMCA. Chang-Diaz, who left the Senate in 2023 after an unsuccessful Democratic campaign for governor, is a longtime YGB member. She will “deepen relationships across the public, private, nonprofit, and philanthropic sectors while advancing the organization’s long-term strategic priorities,” the organization said in a release.

Entrepreneur Steve Snider is the new chair of the Massachusetts Fiscal Alliance. Its sister organization, the Fiscal Alliance Foundation, recently touted the GOP donor on social media as a “longtime supporter” who was helping match $25,000 in donations to help fund “major study comparing the costs of natural gas and nuclear to our current policies,” which Snider called “misguided.” While the group once vowed to never reveal the names of its donors, the Fiscal Alliance Foundation makes exceptions for its board members. Snider worked for two decades at Fidelity Investments before founding a real estate development firm specializing in energy efficient renovations. He replaces Ann Sullivan, the president and CEO of Metro Equipment Corp., who served as chair since 2023.

MASSDOT SCANDAL LATEST: After a Boston25 investigation discovered alleged discrepancies in overtime reporting among several highly paid MassDOT workers, an independent state investigation is underway as Gov. Maura Healey expressed outrage. “Boy, when I saw that, I went through the roof,” she told reporters. She added, “Whatever the investigation yields, know that they’re going to be prosecuted to the fullest extent of the law.” – Boston25 News

MCCA INVESTIGATION: The Massachusetts Convention Center Authority has followed protocols on record-keeping and data collection, according to a report from a firm tapped by the quasi-public agency’s law firm. The MCCA’s practices were placed in the spotlight after the Senate Post Audit and Oversight Committee, led by Sen. Mark Montigny, sent a letter last December, and came amid a disagreement between the MCCA’s board and its then-CEO. – Boston Business Journal

SENATE BUDGET WRAPS: Senators signed off on a $63.4 billion fiscal 2027 budget after padding the original Ways and Means proposal with $70.5 million. The Senate also voted to include provisions aimed at curbing wrong-way and drunk driving, and closing a “gap” in child sexual abuse laws. – State House News Service (gift link)

WORLD CUP WOES: Hotel bookings below expectations, a city and state fight over traffic plans, and local concerns about FIFA’s tardiness in providing permission for community watch parties are all adding up to a big headache as the clock ticks down to the first World Cup matches. – Boston Globe

BOSTON FOUNDATION CEO: Lee Pelton plans to step down as president and CEO of the Boston Foundation this summer. The former Emerson College president took the job five years ago. His life “has revolved around ... solving problems, creating opportunities, improving lives and strengthening communities,” he said. – GBH News

BARNEY FRANK MEMORIAL: A memorial and celebration of the late Rep. Barney Frank, who died at age 86 earlier this week, is set for Monday, June 8, in Faneuil Hall. – Boston Globe

TERMINAL CONCERNS: A retired FAA agent is raising security concerns about a remote terminal that Massport is setting up in Framingham to ease congestion at Logan AIrport. – Boston Herald

QUINCY HOLIDAY: The Lunar New Year is now an official holiday for Quincy Public Schools, at the same level as Christmas and Thanksgiving after a 6-0 vote of the school board. The vote was the culmination of five years of advocacy from proponents. – Patriot Ledger

IN MEMORIAM: Barbara Lenk, the first openly gay member of the Supreme Judicial Court, has died. Lenk, 75, was appointed by Gov. Deval Patrick and retired in 2020. – Boston Globe

Top Massport aviation official retires

Boston Public Library places union head on administrative lead

Police officers dominate New Bedford payroll’s list of top earners

KELLER AT LARGE: 8:30 a.m., WBZ-TV. Political analyst Jon Keller's guest is UMass President Marty Meehan. They discuss the system's revenue shortfall, the slow progress of Gov. Maura Healey’s DRIVE Act proposal on Beacon Hill, and the impact of AI on graduates' employment prospects.

@ ISSUE SIT DOWN: 9:30 a.m., NBC 10. Reporter Matt Prichard interviews Jim Segel, longtime adviser and friend of the late Rep. Barney Frank.

ON THE RECORD: 11 a.m., WCVB. The guest is Plymouth and Barnstable Sen. Dylan Fernandes.

Do you have an open role you'd like to feature here? Click here to place a job board order, or email Dylan Rossiter, Vice President of Affiliated News Services, at [email protected].

Civic Science Fellow in Science, Engineering, and Technology, American Academy of Arts & Sciences

Director of People & Operations, Charles River Watershed Association

District Staff Assistant, US House of Representatives – Office of Congressman Jake Auchincloss

Organizer, SHARE/AFSCME

Senior Counsel – Records Access Officer and Information Management, Massachusetts Water Resources Authority

Litigation Attorney, Disability Law Center

Director of Grants, More Than Words

Executive Assistant, Massachusetts Law Reform Institute

Brand Manager, The Greater Boston Food Bank

VIEW ALL JOBS