LLC Price: Everything You Need to Know
The LLC price needed to set up and maintain an LLC includes $10 to $100 for name reservation, $100 to $300 if you hire a registered agent service process, and about $127 to file the articles of organization. 3 min read
2. Fees Incurred During LLC Formation
3. Fees Incurred for Maintenance of LLCs
The LLC price needed to set up and maintain an LLC includes $10 to $100 for name reservation, $100 to $300 if you hire a registered agent service process, and about $127 to file the articles of organization. You'll also incur annual fees of up to $300, pay license and permit fees, and pay a number taxes. In some states, the LLC might incur expenses to publish its articles of organization.
LLCs and Fees
Filing and maintaining an LLC comes at a cost. The exact amount needed varies from state to state. Money is usually paid to register an LLC name, hire a registered agent for service process, file the articles of organization, publish the articles of organization in a local newspaper, and draft an operating agreement. You'll also need to pay money to get business permits, pay annual filing fees, and pay state taxes.
Fees Incurred During LLC Formation
- Reserving a name: Name reservation is almost universally the first step in the formation of an LLC in all states. States normally require potential LLC owners to pay $10 to $100 for name reservation. Foreign businesses that need to reserve their names in the state typically pay slightly more. Some LLCs might also register a “Doing Business As” or DBA name. Reserving such a name may cost as much as $300.
- Registered agent fees: A registered agent is a person or entity that an LLC appoints to receive legal papers on the company's behalf. Some states allow LLC s to act as their own registered agents. LLCs in those states thus don't need to hire dedicated registered agents. Even in states where the LLCs are prohibited from acting as their own registered agents, there's no requirement to hire a dedicated registered agent service. Rather, any individual over 18 years old with a physical address in the state can act as a registered agent. Hiring a registered agent can cost about $100 to $300 per year.
- Filing the articles of organization: An LLC is officially registered when it files its articles of organization with the state. Virtually all states require LLCs to pay a fee for this filing. The fee ranges from $40 to $500. The average in the U.S. is $127.
- Publication: States like New York require newly formed LLCs to publish their Articles of Organization in a local newspaper. Filing fees naturally vary according to the location and the exact newspaper used, but they typically range from $100 to $300. The good news is that most states don't have this publication requirement.
- Operating agreement: The operating requirement isn't a mandatory requirement for LLCs in most states, but LLC owners are advised to draft one anyway. The agreement states the rights and responsibilities of LLC members and can help LLC owners navigate potential future conflicts. The LLC members can draft the agreement on their own, but a lawyer-drafted one might cost $50 to $300.
- Getting an Employer Identification Number: You can file for an Employer Identification Number for free online. The process is a bit complicated for foreign LLCs that weren't organized in the U.S. or if the LLC doesn't have an address in the U.S. Such LLCs might need the services of a lawyer. Fees for this service can be as high as $100.
- Business permits and licenses: Most LLCs will need at least one license or permit to operate. The cost and number of permits that the LLC needs depend on the location and line of business. You can consult the local chamber of commerce for details about licenses and permits and the fees you'll incur to get them.
Fees Incurred for Maintenance of LLCs
- Annual filing fees: Most states require LLCs to update their filings with the state annually. Such filings have fees ranging from $10 to $300.
- LLC taxes: LLCs in some states must pay a minimum tax, which is sometimes called a "franchise tax." This tax varies from state to state, and in some states, it's levied according to the LLC's annual income.
LLCs must, of course, pay all the other taxes that the states impose on them. This may include sales tax, excise duty, workers compensation insurance, and unemployment tax.
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