Starting a business can be expensive, but an LLC is one of the least expensive ways to start up your own company. In fact, you can form an LLC for as little as $39!
The initial costs to form an LLC are usually centered around filing fees. However, there are other costs you’ll need to pay as your company grows and expands.
How Much Does It Cost to Form an LLC?
The cost of forming an LLC can be as low as $250 (plus credit card processing fees) to as high as thousands of dollars. This is largely dependent on your approach to company formation — and the business location, industry, and levels of privacy that you want.
The main legal document that you need to form an LLC is an Operating Agreement. It should contain all the important information about your company, such as who is a member, how profits are distributed, and how decisions are made.
Many websites offer operating agreement templates for free, but you can also hire a lawyer to prepare one on your behalf. The fee for an LLC Operating Agreement can range from $40 to $200, depending on the complexity of the document and how many Members you have.
An LLC must have a registered agent, which is a person or business that receives and files legal documents on the LLC’s behalf. This can be you, a friend or family member, or a commercial registered agent service.
How Much Does It Cost to File an Annual Report?
If you own an LLC or other type of business entity, it’s important to know the annual report requirements for your state. These reports keep the company and its details up to date so that it can continue to operate legally.
In most cases, you can file an annual report by filling out the information from your state’s website and paying a filing fee with a credit card. However, some states require you to mail in paper copies of your report and pay a fee for doing so.
The fee for filing an annual report varies from state to state and can be anywhere from $50 to $400. Some states will also require you to file other business documentation if important information about your business changes during the year.
Filing an LLC annual report isn’t difficult, but it can be time-consuming to stay on top of deadlines and requirements. If you want to avoid the stress of filing your own annual report, consider hiring an annual report service. They will help you keep up with all of your reporting needs so that you can focus on what’s most important to your business.
How Much Does It Cost to File a Tax Return?
When it comes to filing your tax return, different options have different costs. You can hire a tax pro or a service like Collective to handle it all for you, which can save you time and money in the long run.
You can also choose to form your LLC yourself if you have the time and the patience. The cost of doing it yourself can vary based on your filing needs and how much paperwork you have to complete.
Alternatively, you can use an online incorporation service that will do all of the work for you. This is typically the cheapest option, but you will have to pay for filing fees and annual costs.
Whether you are forming an LLC or filing your taxes, make sure that you are doing it right. Failure to do so can result in fines and penalties, which can get pricier the longer you wait to file.
How Much Does It Cost to Hire an Attorney?
The cost of an attorney can vary greatly depending on where you live and the type of law firm you hire. Larger firms usually charge higher hourly rates than smaller ones.
While forming an LLC can be an overwhelming process, there are some simple steps you can take to save money in the long run. For example, you can use a formation service to handle all the paperwork and legalities.
You can also hire a registered agent to serve as the company’s official contact. The cost of a registered agent varies by state, but you can generally expect to pay between $100 and $300 a year.
Moreover, you can also hire an attorney to draft an operating agreement for your LLC. This is an important document for many LLCs, as it protects the company from conflicts among owners.
