The process of forming an LLC is different in every state,
and the costs are different as well.
In this video we will give you a general overview of the fees you will need to pay when you start an LLC,
as well as those you need to pay to maintain it over time.
We will also address fees that you DO NOT have to pay to form an LLC,
so make sure to watch to the end to save some money.
Forming an LLC requires you to pay a one-time state filing fee,
in addition to ongoing annual maintenance fees.
First, let’s take a look at the one-time filing fees: One Time Filing Fees
The main cost when forming an LLC is typically
the fee of filing your Articles of Organization with the State.
This one-time payment ranges between $40 and $500, depending on your state.
Visit our site to determine the exact filing costs for your particular state.
Several states Arizona, Nebraska, and New York also require your newly incorporated
LLC to publish a statement of formation in a local newspaper.
These publishing costs can be anywhere from $40 and $2000,
depending on your state’s specific requirements.
Visit our site for strategies to publish in your state as cheaply as possible.
In addition to the initial formation fees, there are regular maintenance fees that you
will need to pay to keep your LLC in good standing.
Let’s take a look at these now:
Annual/Biennial Report
Most states require LLC's to submit a fee along with an annual or biennial report
which includes updating the name and address of the LLC.
The report fee varies state by state, but in most cases is less than $50 per year.
Some states levy a yearly tax on LLC's
often called a franchise tax.
This is most often a flat tax, but can also vary according to your LLC's annual earnings
in certain states.
For instance, California LLC’s must pay a yearly $800 franchise tax if they make less
than $250k, and more if they earn more than $250k.
To calculate the specific costs of maintaining an LLC in your state, visit our website:
For an additional cost of $50 to $150, you can use a professional formation service
to create your LLC.
This can save you both time and the headache of filling out legal paperwork.
Various service providers have different packages, which generally charge for:
LLC formation
Registered agent service
Creating your LLC's Operating Agreement
Obtaining an Employer Identification Number
(EIN) from the IRS
Researching which business licenses your LLC will need.
You may not want all of these services, so shop around for different providers and packages.
You can also visit our site for reviews of the top five formation services.
The value of a hired professional service goes beyond the convenience, however.
Using a service for your registered agent means they are the first point of contact for all
inquiries- allowing for an enhanced level of personal privacy.
Of course, you should be mindful of certain aspects of LLC formation that are either free,
or unnecessary.
If you are looking to save money, you can avoid the following:
Research Your LLC’s name.
A service may offer this, but you can perform a name search for free on your state’s website
LLC Kit and Seal.
These types of fancy documentation
are a vanity product, and unnecessary from a legal standpoint.
EIN.
If forming an LLC on your own, you can get your Employer Identification Number
for free from the IRS.
Visit our site HowtostartanLLC.com to get all of the specific details regarding the
costs of setting up an LLC in your state.
Not only do we gather all of the essential information in one place, we also offer other
free resources and tools for getting your business up and running.
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