BostonPrivate equity lives here
Bain Capital, Berkshire Partners, Advent, Audax and TA Associates all run from Boston or Cambridge, making it one of the largest private equity hubs in the country.
Praxis Rock, 2025
Sell a business in Massachusetts
When you sell a business in Massachusetts, the surtax on income over $1 million counts one-time events, so the sale year can carry you over the line, and an estate is taxed above $2 million.
ComplexityMediumTax on the gain9% 2025Deal volumeHighEstate tax
Massachusetts is among the fifteen states with the most employer businesses. The state's share of the gain is among the highest, 9% at the top. Expect an estate tax to plan the proceeds around.
Tax on the gain: 5% plus the 4% surtax on income over about $1 million.
Today
Where you stand
The market in Massachusetts
Small firms are almost all of the state's businesses and close to half its jobs, and Boston is one of the country's largest private equity hubs.
Small businesses
99.5%
of all Massachusetts businesses.
SBA Office of Advocacy, 2022
Small business employees
1.5M
people employed by small businesses in Massachusetts in 2022.
SBA Office of Advocacy, 2022
Share of employment
43.9%
of the state's employment in 2021, about 1.4 million workers.
SBA Office of Advocacy, 2021
The elements this touches
- TmTime The years before you want out. It feeds the exit-readiness score and never moves the price; every other decision is planned against it.
ListenThe Massachusetts briefing, read aloud
The deal team on what changes when you sell a business in Massachusetts.
Before the letter of intent
What Massachusetts takes
How is the gain taxed when you sell a business in Massachusetts?
The surtax on income over $1 million counts the sale year itself, and estates over $2 million pay estate tax.
State tax on the gain
9%
5% plus the 4% surtax on income over about $1 million.
Tax Foundation, 2025
A founder on film
On what he learned about tax on the way to the sale.
Lewis Titus Wastewater purification and manufacturing · Wyoming
Short-term gains cost more
Short-term gains on assets held a year or less are taxed at 8.5 percent, 12.5 percent once the surtax applies.
Estate tax above $2 million
The estate tax reaches only the part of an estate above $2 million for deaths from January 1, 2023; the exemption is not indexed to inflation.
The rate is the state's top rate on the gain for the year shown, the same figure as the indicator in the hero, so the two can never disagree.
The elements this touches
- TxTax Strategy The deal and entity structure, set before the letter of intent. FNDRS tracks whether it is in place. It never moves the price; it changes what you keep.
- ApAfter-Tax Proceeds What you keep at close. FNDRS records the pre-tax walk-away and the gap to your number. It never moves the price, and the tax on it is a question for your CPA.
One thing you would not guess
The millionaires surtax was sold as a tax on the rich; in practice it also catches the founder whose one big year is the sale.
The surtax counts one-time events, so a founder selling a business or a home can cross the $1 million line in a single year.
Forecast at about $2 billion a year, the surtax raised $2.4 billion in 2024, $3 billion in 2025 and over $3.1 billion in fiscal 2026 so far.
Massachusetts was the first state to require garden-leave pay in employee non-competes, in 2018.
When the process opens
Who buys
Who shows up for a business in Massachusetts
Boston is a private equity capital, home to Bain Capital, Advent International, Summit Partners, TA Associates, Berkshire Partners and Audax, so buyers are never far away.
BostonAdvent manages $100 billion
Advent International, headquartered in Boston, managed roughly $100 billion as of November 2025.
Wikipedia, 2025
The elements this touches
- SyStrategic Synergy What one buyer gains that another cannot. The buyer at the table prices it, which is why the sell-side process goes looking for them.
Day 0, and the years after
After the close
What Massachusetts lets the proceeds do
Massachusetts offers no self-settled asset protection trust and keeps a rule against perpetuities, so post-exit trust planning often sits in another state.
No asset protection trust
Massachusetts has no domestic asset protection trust statute; assets you could receive from a trust you created stay open to your creditors.
WealthTrusts go out of state
Residents who want a perpetual dynasty trust or a DAPT set one up under another state's law, such as South Dakota, Delaware, Nevada or Wyoming.
WealthWhere FNDRS comes in
Post-exit planning is the third act of the same engagement, done with outside experts, and it starts before the letter of intent, when a move or a trust can still change the answer.
FNDRSThe elements this touches
- EsEstate Architecture Trusts and ownership set up before the letter of intent. It changes what the family keeps, not what a buyer pays.
- ApAfter-Tax Proceeds What you keep at close. FNDRS records the pre-tax walk-away and the gap to your number. It never moves the price, and the tax on it is a question for your CPA.
People who walked it
Founders
Founders who worked with FNDRS, in their own words
From founders elsewhere
What founders say about working with FNDRS
No founder in Massachusetts is quoted yet. These are founders in other states, quoted word for word, each described by role and state.
1 of 3
“I definitely don't think we'd be in the same spot without you guys.”
No founder in Massachusetts is on film yet. These are founders in other states who worked with FNDRS.46 founders on film
Nearby
Other states in the Northeast
| Northeast | Tax on the gain | Complexity | Deal volume |
|---|---|---|---|
| Connecticut | 6.99% 2025 | Medium | Medium |
| Maine | 7.15% 2025 | Medium | Low |
| New Hampshire | None 2025 | Low | Low |
| New Jersey | 10.75% 2025 | Medium | High |
| New York | 10.9% 2025 | Medium | Very high |
| Pennsylvania | 3.07% 2025 | Medium | High |
| Rhode Island | 5.99% 2025 | High | Very low |
| Vermont | 8.75% 2025 | Medium | Very low |
Your next step
The road starts with one step
Know where you stand in fifteen minutes, or talk the Massachusetts sale through with a dealmaker. Either way, no pitch and no obligation.
Selling in Massachusetts? Start with a conversation
No pitch and no obligation. If the honest answer is not yet, we will say so, and say what to work on.