Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business weddings
CostHelper > Small Business  > Incorporating a Business

Incorporating a Business Cost


How Much Does Incorporating a Business Cost?

 
low costLow: $100-$200average costMedium: $1000-$2,000high costHigh: $3,000+
post E-mail post Post  

With some research on the Secretary of State website for your state, and maybe a legal help book, you can incorporate your company on your own, paying only state filing fees. State filing fees vary by state typically range between $100 - $200. In California, various filing fees to the Secretary of State and Department of Corporations are approximately $165.

Typical costs:

  • Internet companies like mycorporation.com[1] provide incorporation services for$50-$150 + state filing fees. These services can automate the incorporation process, but often don't explain all the terms or don't customize the incorporation for your business.
  • A small law firm, like a solo practitioner specializing in small businesses, may charge approximately $100 - $300 per hour, totaling around $1,000-$2,000 + state filing fees for a basic incorporation. Many lawyers will require a "retainer" -- payment beforehand.
  • Large law firms may charge approximately $100 to $450 per hour, totaling $3,000 or more + state filing fees.
  • Tip: If you're using a small or even a large law firm, try to negotiate a flat fee or fee cap -- so you know total costs from the start.
Related articles: Setting up an LLC, Accountant, Business Sale Attorney

What should be included:
  • Initial consultation on how you're forming the business (e.g., corporation, Limited Liability Corporation, partnership, etc.).
  • Drafting the state and local documents, including the Articles of Incorporation, Bylaws, Election of Directors, Initial Resolution of Directors, and Share Certificate.
  • Other documents required by the Secretary of State that vary state-by-state (e.g., securities exemptions forms, information about the corporation's officers)
Additional costs:
  • More complex incorporations can require additional documents, like a Contribution Agreement, Shareholders Agreement and Founders Restricted Stock Purchase Agreement which can take an additional 5-10 billable hours each.
Discounts:
  • If you use a law firm and think you'll have a substantial amount of work in the future, try to negotiate a discounted rate.
post E-mail post Post  
CostHelper News


Top 7 Ways to Trim Pet Expenses
Pets, for many, are part of the family; another member that needs love, feeding and treatment, just like anyone else in the household. || Posted September 18 2013


Forgotten Expenses In a Home Addition Budget
Items like construction costs, permit fees or debris removal aren't the only expenses to consider when calculating the total costs of a home remodeling project. || Posted August 5 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With Incorporating a Business
 
Subject:  *
Amount Spent:  *
Firm : Additional Services: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.mycorporation.com/business-formations/incorporate.jsp
More Small Business Topics
Check Out All Costs for Small Business How Much Does a Motivational or Keynote Speaker Cost? How Much Does Payroll Service Cost? How Much Does a Point of Sale System Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Outrageous Expense
Paid: 79000.00
1 hour and 20 minute flight from a hospital who is in my plan to a hospital that is in my plan and both have medflight helicopters... [more]
-Youare KiddingMe
Air Ambulance Cost
Family friend's wedding
Paid: 710.00
1 bridal bouquet/1 toss bouquet, 2 MOH bouquets, 1 jr bride bouquet, 5 bride maids bouquets, 2 wrist corsages, 2 flower girl baskets, 1 ring bearer pillow and supplies for 19 centerpieces (11 tall pilsner vases with approximately 20 flowers... [more]
-Mrs. Murray
Wedding Flowers Cost
Ignition coil
Paid: 46.00
Bought at O'Riley auto parts. Watched YouTube video.Removed 2 screws it sits on top of engine. Replaced coil and bad spark plug... [more]
-James Smith01
Ignition Coil Replacement Cost
Concussion
Paid: 7459.00
Hit my head hard and had speech deficit and blurry/double vision. Urgent care advised I go to Emergency because they had MRI. I was able to understand what I was told, but really having difficulty finding words and talking... [more]
-KS
Emergency Room Visit Cost
Cat declawing just front know anywhere that isn't outrageously priced??
Paid: 0.00
Need to have my 2 yr old cat declawed. Unfortunately where I live they are now making it mandatory. My vet I currently use wants over $450. I really can't afford that. I'm currently dealing with medical issues myself and getting chemo etc... [more]
-Livey
Cat Declawing Cost
Pricing--alterations/custom
Paid: 0.00
I have to chuckle over the comments about pricing. Custom dresses should not cost less than ready to wear (unless you are buying the label/shop name). The things I try to remind brides of are: 1. I make your pattern for you alone... [more]
-smsivulabydesign
Wedding Dress Alterations Cost