Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports 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 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 Post  
CostHelper News


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


And the Best Bacon Is...
This little piggy went to market.After that, Consumer Reports bought samples and tasted to determine which little piggy offered the best bacon.Top honors go to Costco, it turns out. || Posted October 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
Replace leaking supply line40' w/copper from meter to house
Paid: 2150.00
Water supply line leaking, need dig trench, 40' Type L copper pipe. 1st plumber quote $6500. Did some research, 2nd quote is $2150. Depth by city code 16 - 18", both licensed, guarantee 1 year... [more]
-Meeept2000
Replacing Copper Pipes Cost
About to start babysitting
Paid: 6.00
I’m about to start babysitting for their first time ever (for pay) and I was wondering if my pay was too high or too low. Tha family has two boys, a ten year old and an eight year old... [more]
-
Baby Sitter Cost
cost of ear drops
Paid: 67.00
I was prescribed antibiotic drops for an ear infection. Went to pick up at Walgreen's and declined due to price of $219. I asked the medical facility to send prescription to Costco. Picked it up there for $67... [more]
-jeffo
Ear Infection Cost
Be aware
Paid: 0.00
Be aware that many of the listed locksmiths are a call service and many of them are in another state. Some even try to pass as other businesses. Academy lock is a thief and abuses they employed too. There are many... [more]
-Martin Y.
Locksmith Cost
Deep cleaning
Paid: 9999.00
As a dental hygienist with 22 years experience, I can tell you “DEEP CLEANING” is not a SCAM! 1st and foremost remember your insurance coverage is to assist with treatment payments... [more]
-Tasha Nicole
Teeth Cleaning Cost
04 Nissan Sentra
Paid: 120.00
I had one key for the car I just bought a few months back, well... While I was closing the front door to my house my key was caught and severely bent, I tried to gently tap it back straight but needless to say it snapped in half... [more]
-Mz Sentra
Key Copy Cost