The process and cost of forming an LLC usually differs from state to state at every stage and is determined by the way you go about forming your LLC. This video answers most frequently asked questions on the basic fees you need to pay to set up an LLC, the extra fees you need to pay to form an LLC, the fees you don’t need to pay, and LLC maintenance fees. Typically, you can use any of the following ways to form an LLC. You can either:
- File it yourself (D.I.Y) or,
- Consult with an attorney, or
- Use an online incorporation service website.
What are the basic fees for forming an LLC?
Whichever method you use to form your LLC, you still need to pay the basic cost of forming an LLC, and this is typically known as a state filing fee. The state filing fee is a one-time payment fee, whose costs range from $40 to as high as $500, depending on the state you are filing from. It is used to file a document usually called articles of organization with your state’s business filing office.
What other fees do you need to pay to set up an LLC?
Other fees you need to pay are:
Business licensing and permit fees – You might need a business license from either federal, or state government or a local authorization to operate. The need for this usually depends on where you are located and the type of industry you are in.
Operating Agreement – An operating agreement is a legally binding document governing your new LLC. Typically, it outlines the possession and management structure of an LLC. This usually costs between $40 and $99.
Reservation fees for an LLC name (Optional) – You need to choose an LLC name to identify your LLC, and the name must be different from the names of other businesses in your state. Most states allow you to reserve an LLC name for one or two months using a filing name reservation application. Typically, this costs less than $50 in many states.
Publication fees (Applies only in Arizona, Nebraska, and New York) – Arizona, Nebraska, and New York usually require that you publish in a local paper a statement of formation as a new LLC. Typically, the costs range from $40 to $2000.
What is the maintenance cost of an LLC?
The maintenance cost of an LLC is:
- Minimum annual LLC taxes ($100 to $400, except California, which charges $800 per year),
- Annual or biennial report (usually less than $50 per year),
- Franchise task (depends on your state),
- Renewing your business license (usually $20 to $100) and,
- Registered agent fees (usually $100 to $300)
What are the fees you do not need to pay to set up LLC?
Researching your LLC name fees, forced registered agent fees, forced annual renewals, and LLC membership certificates are fees that you do not need to pay to set up an LLC. Need help setting up an LLC? Contact us at QT Business Solutions to set up your free consultation.