Cost To Start An LLC

Figuring out how much it will cost you to form an LLC can be a confusing and difficult process.

There are many different factors that can affect the cost of forming your business, such as where you live, what kind of company you want to form, or how quickly you need the paperwork done.

In this blog post, we will discuss some common questions about LLC formation costs so that deciding if an LLC is right for your business becomes easier!

Benefits of an LLC

There are many benefits to forming an LLC. One of the most popular benefits is that your personal assets will be protected from any lawsuits filed against your company.

LLCs also make it easier to raise capital and find investors since they are more attractive for private equity investments than sole proprietorships or partnerships. If you plan on hiring employees, an LLC offers additional tax savings as well because the LLC is considered a pass-through entity.

How Much Is An LLC?

The costs vary depending on where you live, what kind of company you want to form, or how quickly you need the paperwork done.

For example, forming an LLC in California will cost approximately $800 plus government fees and taxes while that same procedure would only cost about $125 in Florida.

The cost of an LLC depends on the state you want to form it in. To form an LLC, the Articles of Organization (Charter or Certificate) will be filed with a state agency.

The cost to file varies by state and ranges from $40-$800 depending on which corporation registration service is utilized.

There are several costs and fees for setting up a new LLC, including an LLC filing fee to state government agencies and any service fees incurred by attorneys or companies you may be using.

Business Name Reservation Fee

An LLC name can be reserved for free in some states and at a cost between $10-$28 in others.

Publication Fees

Depending on the state you live in, you may need to publish a notice of your new LLC formation. The cost and steps vary by state.

Annual fee

After the LLC is formed, there are additional fees to keep the company in business like filing annual reports.

Many states charge an annual fee with exemptions based on certain criteria. Filing the report and paying any required fees is essential for keeping your LLC registered and preserving its liability protection.

Some states even have what’s known as an annual franchise tax, which will be charged as a yearly tax.

Does an LLC Cost Money Every Year?

The cost of maintaining an LLC varies on the state in which it’s located, as well as the specific needs and circumstances for your company. In most states, you are required to renew your LLC each year and file an annual report. Not all states charge to fill an annual report, but in states like Massachusetts, you are required to pay $500 each year.

Cost of a Registered Agent Service: Forming an LLC carries many costs, including getting an LLC’s registered agent. Services of Process are the legal documents delivered to the person who can act on a company’s behalf (usually executive officers or directors) and when someone is trying to take action against a company, in order to provide notice. Registered agents typically charge between $100-125.

Business License Cost: If you are starting a new business, you should research the licenses and permits required for your type of business. Businesses often need to register with different services such as payroll services and tax authorities. Make sure to review the requirements and cost for the state you are starting your new LLC.

EIN Number: There is no cost to file for an EIN with the IRS. There are some third-party services that offer this cost at an additional fee.

How much does it cost to start an llc

State LLC Formation Fees

Here is a breakdown of LLC cost by state. There may be additional cost for added services or required license etc.

 

State LLC Cost Annual LLC Fees
Alabama $180 $100-$200
Alaska $250 $150
Arizona $50 $0 to $100
Arkansas $45 or $50 $150
California $90 $810
Colorado $50 $10
Connecticut $120 $270
Delaware $90 $300
District of Columbia (D.C.) $220 $300
Florida $263.75 $138.75
Georgia $100 $50
Hawaii $50 $15
Idaho $100 $0
Illinois $150 $75
Indiana $50 $32
Iowa $50 $35
Kansas $165 $50
Kentucky $40 $15
Louisiana $100 $30
Maine $175 $85
Maryland $450 $300
Massachusetts $500 $500
Michigan $50 $25
Minnesota $135 $25-$45
Mississippi $50 $25
Missouri $50 or $105 $0
Montana $70 $20
Nebraska $110 $18
Nevada $75 $350
New Hampshire $100 $100
New Jersey $125 $125 per LLC member + $50
New Mexico $50 None
New York $275 $25 to $4,500
North Carolina $125 $200
North Dakota $135 $50
Ohio $99 $0
Oklahoma $100 $25
Oregon $100 $100
Pennsylvania $125 $0
Rhode Island $150 $450
South Carolina $110 $0
South Dakota $150 $50
Tennessee $300-$3,000 $300-$3,000
Texas $300 $0
Utah $70 $20
Vermont $125 $35
Virginia $100 $50
Washington $259 $79
West Virginia $130 $25
Wisconsin $130 $25
Wyoming $100 $50