How much does it cost to form an LLC? The cost to form an LLC generally ranges from $40 to $500 depending on the state.
Just like any other start-up, your LLC will require some money to get it up and running. However, the exact cost is highly dependent on your location and which state you’re in.
Additionally, the price can vary depending on if your hire an attorney or you do certain tasks for yourself.
Check out Go Vitru’s guide on Whats an LLC?
LLC Formation Costs
When it comes to forming an LLC, there are quite a number of fees that you’ll be required to pay. However, the final cost is dependent on your location.
Filing The Articles Of Organization
Before you can legally set up your company, you must get the articles of organization filed within the state. The articles of organization is also known as the certificate of organization or the certificate of formation. For most states, the articles of organization should be filed within the office of the secretary of state. Filing for this can cost $50, $100, or even up to $250 like in the state of Alaska.
Reserving An LLC Name
Every company needs a name and you’ll need to come up with something unique to your company. If for some reason the name is very similar to another company, you may have to change it or you can run into legal problems. However, if you choose a name and it’s unique to the services provided, you can even reserve the right to the name.
Reserving your name may cost up to $50 or as little as $10 depending on your location. However, this is entirely up to you and not necessarily required. If you’re already filing for the articles of organization, then there’s no need to reserve your desired name.
Filing A Fictitious Business Name Application
After determining the legal name for your LLC, there’s no reason why you need to operate under the legal name. Some companies prefer to use an assumed name, a fictitious name, or what is called a doing business as (DBA) name. While filing for a fictitious name isn’t necessary, the option to do so is there.
If you’re thinking about it, you’ll need to pay a filing fee when you put your application in. For some states, one agency such as the Secretary of States’ office conducts all of these tasks. In other states where the same office isn’t used, you’ll need to file in the business office for the country. After filing for your fictitious name, you may be legally required to publish your desired name in the papers at a cost of anywhere between $10 and $200 plus.
Obtaining A Business License
Depending on where you reside, you may need a special license to operate your business. These licenses can be obtained from the county government. States like Washington tend to have a policy in place which requires a state-wide business license while others tend to require a local license. The cost to attain the relevant license for your business can range from $50 to $100.
Ongoing Costs Of Running An LLC
After your LLC is up and running, you’ll need to pay some additional fees to ensure that it remains in a good state with the government. If for some reason you miss the deadline on this, your entire company can lose its legal right to conduct business within the state. If your LLC needs to file bankruptcy please check our guide here.
Minimum Annual LLC Taxes
Some states require their LLC owners to pay minimum annual LLC taxes. These LLC taxes are often referred to as fees or franchise taxes. Regardless of your earnings, your LLC still has taxes to pay.
The highest dues are seen in Californian LLCs which are required to pay up to $800 each year. For other states, the minimum cost is anywhere between $100 and $400.
Annual Report Fees
After you’ve established your LLC, you’ll need to continually file with the Secretary of States’ office to ensure that your information is updated. This act is usually referred to as the statement of information, the periodic report, the biennial report or the annual report. However, a filing fee of anywhere between $20 and $100 is applied to get this done.
Registered Agent Fees
If you didn’t already know, all LLCs are required to ensure that they have an agent for the service of process. This is simply another business or individual who accepts the task of accepting legal documents for the LLC. However, this task must be carried out by a legal agent and not the LLC itself.
Your registered agent could be anyone who is over the age of 18 as long as they reside in the same state as your LLC. Hence, LLC owners can serve if they wanted to. Additionally, your spouse, your lawyer, a friend, a relative or even another relative can act as the agent for your LLC.
With that said, most if not all LLCs prefer to work with a professional. When you hire a professional as your registered agent, you can spend anywhere between $100 and $300. One of the main benefits of this is that you can rest assured that you will get any legal correspondence that comes your way. Do I need a registered agent for an LLC?
Business License Renewal Fees
From time to time, you will need to ensure that you get your LLC licenses renewed. In some instances, this can be mean every year and it can cost around $20 to $100. One of the cheapest options to get your LLC formed is by completing and filing all of the forms on your own.
While it may seem complicated, you can easily hire a lawyer to get them done for a fee of course. Some lawyers can easily charge anywhere between a couple hundred or even thousands to get these tasks completed. So, if you’re looking for an alternative, it’s a great idea to look into LLC service partners.