How Much Does It Cost To Set Up An LLC?

Turning a new business idea from a dream into reality is what drives most entrepreneurs to form companies.

Unfortunately, dreams aren’t enough to establish a profitable venture – you need to have some capital set aside to get the business up and running.

As a new entrepreneur, you’re probably asking yourself the question “How much does it cost to set up an LLC?”. Well, as a general guideline, you’ll have to be prepared to fork out money in fees that vary depending on the state where your LLC will be established in.

Fees for LLC Formation

There are some common fees that you’ll expect to pay when you set up your LLC. They are as follows:

1. Business License Fee

Every small or medium sized business needs to have a business license in order to operate in the state they are located in. There are exceptions to this rule, such as sole proprietors and freelancers, but for anything more than a small hobby home business or a freelance side hustle, you’ll need a business license or else risk fines and legal action from the state.

2. Registered Agent Fees

A Registered Agent is a required appointment in every Limited Liability Company. This person is responsible for receiving legal documents on behalf of the company. If you are a business owner, you can appoint yourself as the registered agent, otherwise, if you prefer to have someone else receive legal letters for you, you can hire registered agent services at a fee.

3. Articles of Organization Filing Fee

An Articles Of Organization is a foundational document that formally establishes an LLC company at the state level, meaning that the state recognizes that you are a legitimate business selling goods or services. This is the first step every entrepreneur must take in setting up their business, no matter what state they are based in.

Registering your Articles Of Organization document requires you to pay fees which vary from state to state.

If you’re looking for an easier way to register your business without worrying about having to pay more in surprise fees than you’ve budgeted for, Incfile can help you set up an LLC, S Corp, C Corp, or Nonprofit quickly and easily.

Your choice of business entity will determine the rules, regulations, and taxes that your company will be subject to, so it is always worth having a professional, trusted (5 star rating on ShopperApproved) and experienced company like Incfile take a look at your current business situation to evaluate and advise on the next best steps for your business.

Incfile has 3 tiered plans – Silver, Gold, and Platinum:

1. The Silver plan is a basic service; it is completely free with the exception of required state fees. You get a free registered agent for one year, unlimited name searches, and preparation and filing of the Articles of Organization.

2. The Gold plan (recommended): Incfile’s mid-tier package, starts at a fee of $199. It includes all of the services that are included in Silver, with the addition of many other LLC features such as:

– EIN (Employee Identification Number) services that are needed to open a business bank account and to file your business taxes.

– IRS Form 2553

– Operating Agreement that is a requirement in some states.

– Banking Resolution that gives authority to individuals to open and use bank accounts, or lines of credit.

– And lots more…

3. The Platinum plan: Incfile's most premium of services is $299 per year, which includes everything in the Gold and Silver tiers, but with the addition of:

Domain name and Business Email services.
Expedited Filing.
Contract library that contains 25+ legal document templates written by attorneys.
Die-cast corporate embossing seal.
Professional binder to organize all important company documents together.

Overall, for those looking to start their LLC with the least amount of headache and time spent, Incfile’s Gold package is the most attractive option.

Once your business starts picking up, you’re going to need all the default services that are included in the Gold package, which means you won’t need to worry about add-on fees in the long run.

Conclusion:

There are a few fees that new entrepreneurs must take note of when starting their business, and these fees may vary from state to state.

With Incfile’s Gold services, you can save yourself the trouble of breaking down the LLC registration fees you need to pay, as they can do it all for you in a professional and legal way.