If you are thinking of forming an LLC but wondering how much does an LLC costs, you are on the right page…
When it comes to determining how much a Limited Liability Company LLC costs, be sure that there are two costs to consider: 1. Formation costs, and 2. Ongoing costs.
I will detail how much an LLC costs on this page, but please feel free to email me directly if you have any questions for your specific business.
How Much Does it Cost to Form an LLC?
The formation cost of an LLC consist of state filing fees and services fees...
State LLC Filing Fees
To form an LLC, you will need a business lawyer to file an Articles of Organization (also called Certificate of Formation) with the Secretary of State of State.
Every state has its own filing fee for forming an LLC. So the filing fee for filing the Articles of Organization or Articles of Incorporation will depend on which state you will be incorporating in.
Typically, state filing fees for forming an LLC are between $50 and $800, depending on which state you will be forming your LLC in.
You can find a list of state filing fees here.
In addition to state filing fees, you may also pay service fees for the expertise and additional services of a business lawyer to form your LLC.
At Mollaei Law, I included all state filing fees and service fees as included as part of the package.
Typically, my service fee for forming an LLC is anywhere from $490 to $790 depending on the type of business and the services that will come with forming your LLC. Please email me if you would like a quote on forming your LLC.
How Much Does it Cost to Operate an LLC?
Once you form your LLC, there are some costs associated with operating an LLC on an ongoing basis.
Typically, each state charges an annual fee to maintain an LLC.
In many states, you must also submit an annual report or statement of information, which is a one-page form sent by the state. Some states also have state taxes.
The annual fees for three popular states, California, Delaware, Nevada, and New York, are as follows (prices shown are as of January 2017):
California LLC Costs
A $20 reporting fee is required to file Statement of Information 90 days after formation and then every two years.
Further, an annual $800 LLC tax is due by the 15th day of the fourth month after LLC formation and every year thereafter. If the LLC's income exceeds $250,000, it will owe an additional LLC tax based on the income amount.
Delaware LLC Costs
The ongoing cost of a Delaware LLC is an annual LLC tax of $300 due each June 1st, beginning the year following formation. There is no state income tax for Delaware LLC.
Nevada LLC Costs
The ongoing cost of a Nevada LLC is $150 fee and the Initial List of Managers or Managing Members, as well as a $200 fee and a Business License Application, are due within 30 days of formation. There is no state income tax for Nevada LLC.
New York LLC Costs
Every New York LLC must publish notice of its formation in two newspapers in the county in which it was created. In some areas, the fees for this publication can run up to $2,000. The company must then submit a certificate of this publication to the state, together with a $50 filing fee.
For LLCs that choose to be treated as a partnership, there are annual taxes that are based on total income (from a minimum of $25 to a maximum of $4,500).
Other State LLC Costs
Contact me if you have any questions about how much it costs to form an LLC in your state.
I can help you save time and money when you form an LLC... feel free to contact me.
Other Frequently Asked Questions about LLCs:
What is a Limited Liability Company (LLC)?
A Limited Liability Company (LLC) or LLC is a business entity that is separate from its owners that offers personal liability protection.
Personal liability protection means the members of the LLC are not personally liable for business debts.
Also, like a sole proprietorship or partnership, an LLC has operating flexibility and enjoys pass-through entity for tax purposes. What this means is that the LLC’s profits are passed through and taxable to the members of the LLC — and the LLC itself is not taxed.
What Legal Documents Do I Need to Form an LLC?
To create an LLC, a [business lawyer] will prepare and file Articles of Organization with the Secretary of State in the state where you will be conducting business.
Next, the LLC members will need an Operating Agreement, which sets forth the rights of the members and the rules for running the company.
Though it is not required by law for the members of an LLC to enter into an Operating Agreement, it is highly advisable that members do so in order to set forth rights, responsibilities, and liabilities of the members, ownership interests, what happens upon departure or addition of a member, dissolution rules, tax calculations and more.
Further, an LLC will need its own Employer Identification Number (EIN) (also called Tax ID Number) from the IRS. If you have a Social Security Number (SSN), you can apply for an EIN here. If you do not have a Social Security Number (SSN), you can [apply for an EIN here].
How Much Does it Cost to Hire Someone to Set up an LLC for Me?
The cost of having a business lawyer set up and form your LLC for you can be anywhere from $490 to $790 depending on the complexity of your business and how many members your LLC has.