Starting an LLC is the dream of many entrepreneurs. But it’s the LLC cost that holds some of them back from pursuing that dream. So, how much does it cost to start an LLC?
Unfortunately, there is no one answer to that question. This is because the cost of setting up an LLC varies from one state to the next, as do many of the annual fees.
We’ll explore all these factors and more in today’s blog post, so you will no longer be wondering “how much does it cost to get an LLC?” or “what is the cost to start an LLC?”
Let’s get started!
What is an LLC
Since we’ll be answering the question, “how much does an LLC cost?”, we’ll need to first define what an LLC is and why you should get one in the first place. Because for many business owners, it doesn’t matter how much—to start an LLC is to get an edge.
A Limited Liability Company or LLC is the most popular entity structure available. Blending aspects of corporations, partnerships, and sole proprietorships, they are simple and flexible business entities that protect the owners and operators from personal liability.
This isn’t possible as a freelancer or solopreneur, because with those business types, there is no separation between your business and personal assets. So, if you’re ever targeted by a lawsuit, you risk losing EVERYTHING—your savings, home, retirement, and other personal property.
LLCs also comes with a ton of perks including tax savings, privacy, brand protection, and greater access to business funding.
Our LLC setup service is 100% free here at Inc Authority. We waive our service charges, labor costs, and overhead. You only pay the mandatory Secretary of State Fees, which you’ll need to pay regardless of who forms your LLC for you!
How much does it cost to start an LLC?
When it comes to determining the LLC fee, there are two factors to consider:
- State formation fee
- Business name reservation fee
- Annual fee
- Ongoing fees
Remember, the LLC cost by state varies for each of these things. And because we can’t break down the costs for all 50 states, we will provide a price range for. For a comprehensive list of LLC fees per state, click here.
State formation fee
Every state has a unique filing fee for forming an LLC. What exactly is being filed? Your Articles of Organization. This is the most important (and most expensive) form that you’ll file to start your LLC. This is because in the eyes of the state, your business doesn’t exist until you file the Articles of Organization.
This cost to file the Articles of Organization for an LLC costs between $40 and $500.The good news is that, as long as it’s accepted, this is a one-time filing, so you won’t need to pay this fee again.
Business name reservation fee
This step isn’t required (unless you’re forming your business in Alabama), but it comes in handy if you have a business name in mind but aren’t ready to file your Articles of Organization. Costing between $10-$28, reserving your business name ensures that no one else can use it.
If you’re ready to start your business, skip this step and simply file the Articles of Organization instead. This will automatically register your name.
In most states, you will have to renew your LLC and file an annual report. The state fees for this process range from $0 to $500 annually. In addition to the annual fee, there are several ongoing fees to running an LLC as well.
Registered Agent Service
A Registered Agent is a person or company who accepts service of legal documents and notifications from the state or other entities. Your registered agent serves as your business’ public address. In many cases, the owner will hire a commercial registered agent to act as their Registered Agent to provide additional privacy for the members. Annual registered agent fees usually range from $100-$125.
Regardless of the business entity, a variety of licenses and permits such as a sales tax id number, business license, certificate of occupancy, and others may be required. To learn more about the costs of licenses and permits in your state, you’ll need to contact your Secretary of State.
Employer Identification Number (EIN)
The EIN is free in all 50 states, but if you decide to use professional LLC services, you could be charged a small fee, usually around $50 to $100.
Starting a business is an exciting experience, but so many people get defeated by the cost. Well, our goal here at Inc Authority is to make business ownership an achievable goal for all. That’s why our LLC setup service is 100% free and comes with 9 free business management tools to make running your business a breeze!
So, get started today and enjoy the perks and protections of entity formation services no matter where the road takes you!
Incorporating is the most powerful thing you can do to legitimize your business. And at IncAuthority.com, our setup LLC services are 100% free. Always. So, don’t wait. Form your free LLC today and enjoy the protection due to you and your business under the law. Start now for free.