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  > Setting up an LLC

Setting up an LLC Cost


How Much Does Setting up an LLC Cost?

 
low costLow: Books or Software Run $17-$400 + Fees ($50-$800+)average costMedium: Attorneys Can Charge $1,000-$3,000+ + Fees ($50-$800+)
post E-mail post Post  

Commonly referred to as an LLC, a limited liability company[1] is a way of setting up legal ownership of a business to combine some of the advantages of a partnership or sole proprietorship with those of a corporation. Unless the LLC "members" (the owners) choose otherwise, an LLC is taxed like a partnership/sole proprietorship with no income taxes at the business level, and with all profits and losses passed through to the LLC members. And similar to a corporation, LLC members are usually not held personally liable for the company's debts. At the same time, an LLC is more flexible and not as formally structured as a legal corporation. Entrepreneur.com explains some of the pros and cons[2] of an LLC.

Typical costs:

  • State filing fees to set up an LLC can run anywhere from $50-$800 or more in some circumstances. Contact your Secretary of State office to find out the fees and requirements in your state. You might be required to publish the formation of your new company in a local newspaper, which typically costs $40-$100 -- although it can be more. (LegalZoom.com[3] reports that in some New York counties publication fees can run as high as $2,000.)
  • Many online services will assist you with the LCC set-up process for fees ranging from $35-$400 depending on the level of services included (the higher prices include rush processing). That's in addition to your state filing fees and publication expenses. LegalZoom.com[4] offers a basic LLC package starting at $149. Nolo Press sells books to guide you through the LCC process for $17-$45, and LLC Maker computer software for $60-$90.
  • A certified public accountant (CPA) cannot provide legal advice, but can guide you through the paperwork and decision-making process of setting up an LLC for an average cost of $400-$900 or more, depending on location and complexity. That's in addition to state fees and expenses.
  • Attorneys charge $100-$300 or more an hour to guide you through the legal niceties of setting up an LLC, for a typical total cost of $1,000-$3,000 or more depending on your location, the number of LLC members and the complexity of the arrangements. In some circumstances (multiple LLC members, varying ownership percentages, other complicated arrangements or situations) legal fees can run $3,000-$5,000 or more. Some attorneys include the required state fees and other expenses in their total cost; others do not.
Related articles: Incorporating a Business, Business Tax Preparation, Accountant

What should be included:
  • Although the specifics vary in each state, the usual steps for setting up an LLC include: deciding on a business name; researching the availability of that name; registering the LLC name; creating and signing an LLC agreement; writing your LLC's Articles of Organization; if required, publishing the formation of your LLC in a local newspaper; filing your Articles of Organization; and obtaining any required business licenses or permits. The process can be fairly easy; in many states, the Articles of Organization is just a one-page form. Nolo Press explains forming an LLC, Lawyers.com provides an overview[5] and FindLaw.com links to business formation forms and fees[6] for each state.
  • In some circumstances, it might be better to form a corporation. FindLaw.com compares corporations and LLCs.
Additional costs:
  • Annual fees to maintain an LLC range from $20-$200 and up, depending on the state. Some states charge an annual franchise tax which varies from $100 in Delaware to an $800 annual minimum in California, and can be higher depending on the volume of business.
Shopping for setting up an llc:
  • If searching for an online LLC service, be sure the company is providing accurate and up-to-date information for your state. Or if you're already working with an accountant, ask what sort of LLC assistance their firm provides.
  • If you want legal assistance with the process, ask about the attorney's training and experience with business organizations. Lawyers.com explains how to select a business lawyer[7] and lists 12 questions[8] to ask any potential attorney.
  • Referrals to business organization attorneys are available through Lawyers.com[9] and FindLaw.com[10] . Your attorney should provide you with a written fee agreement; be sure you understand all the potential costs.
post E-mail post Post  
CostHelper News


3 Ways to Have the Government Pay You Back for Your Energy Efficient Upgrades
Any renovations or upgrades made to your home this year that included energy-efficient appliances could be eligible for some federal energy tax credits. But it's not just appliances. || Posted December 9 2013


7 Lesser-Known Discounts for the 50+ Crowd
As they age, members of the Baby Boomer generation don't like to admit that they're senior citizens, but they love getting discounts. It's kind of a quandary, because some of the best deals available are reduced prices for older folks. || Posted October 21 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With Setting up an LLC
 
Subject:  *
Amount Spent:  * total
Service or Attorney: Law Firm: 
Fee Per Hour:   
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.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Limited-Liability-Company-(LLC)
  2.  www.entrepreneur.com/article/77966
  3.  www.legalzoom.com/llc-faq/llc-operating-costs.html
  4.  www.legalzoom.com/limited-liability-company/limited-liability-company-pricing.html
  5.  business-law.lawyers.com/business-formation/Create-a-Limited-Liability-Corporation-LLC-...
  6.  smallbusiness.findlaw.com/incorporation-and-legal-structures/state-guide-forms-and-fees...
  7.  business-law.lawyers.com/common/content/print_content.php?articleid=1001782&
  8.  research.lawyers.com/12-Questions-To-Ask-Your-Potential-Lawyer.html
  9.  www.lawyers.com/limited-liability-companies/find-law-firms-by-location/
  10.  lawyers.findlaw.com/lawyer/practice/Business-Organizations
More Small Business Topics
Check Out All Costs for Small Business How Much Do Business Cards Cost? How Much Does Office Cleaning Cost? How Much Does an Event Photographer 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
COST OF EXAM, EUTHANASIA & GROUP CREMATION
Paid: 160.00
Exam $48, Euthanasia of our Cat Grasshopper $84, Aftercare group cremation $28, total of $160. Location Southern California / San Diego County on 8/28/2014. Tried to take her to our Vet of 15 years and they could not see her for a week... [more]
-Crisy
Pet Euthanasia Cost
Yearly trust payment
Paid: 12000.00
I pay about $12,000 a year to my trustee's New Mexico office, However I've often wondered if I was being excessively charged... [more]
-paying more then earning
Trust Cost
ER w/belly ache
Paid: 9988.00
Went in & 2 other cases came in later but had 2 be served 1st. Gave me a pain killer & never saw a doctor. Each thing they did was hurry up & wait... [more]
-charles pace
Emergency Room Visit Cost
Bone graft injection
Paid: 7700.00
The dentist said I needed 7cc's of bone @ $1100 per cc. Is this a reasonable amount? This was to secure an implant the was infected... [more]
-Gala Dali
Dental Bone Graft Cost
wheel balance (front tires)
Paid: 38.00
They busted 1 of my wheel studs, didn't tell me, and replaced it with a really crappy looking lugnut. Oh, and the ride quality is worse. I paid them to do this... [more]
-Hue Janus
Wheel Balancing Cost
Deep cleaning and extractions
Paid: 90.00
When we got our 4-year baby from someone she had horrible breath and our vet recommended a deep cleaning for $175. I checked around and the SOHFGA did the same procedure for $80. So I had them do it at the same time we had her spayed... [more]
-Cocoa's Mom - Phyllis Rios
Dog Teeth Cleaning Cost