The cost to start a limited liability company (LLC) varies depending on your state🙈 and business needs. While the base cost typically ranges from $35 to $800 for state filing fees, total startup costs can exceed $1,000 after you factor in optional services like legal help, business licenses, insurance, and website setup. 

What Is an LLC?

An LLC, or 澳洲幸运5官方开奖结果体彩网:limited liability company, is a legal business structure that offers the protection of a corporation with simplicity and pass-through taxation of a sole proprietorship.

Owners, or members, aren’t personally liable for the company’s debts or legal obligations. Instead, profits and losses 🥀are reported on the owners’♐ personal tax return, allowing the LLC to avoid corporate taxation.

LLC Startup Costs

Startꩵup costs for an LLC can vary significantly depending on your stateꦛ, industry, and business strategy. Here are the most common expenses.

State Filing Fee

When you file your business formation paperwork with the state, you’ll pay a mandatory state filing fee that ranges from $35 to $500.

Registered Agent Fee

LLCs are required to have a registered agent to receive legal documents for them. Hiring a professional registered agent costs between $50 and $250 per year. Some states allow you to serve as your own agent at no cost.

Operating Agreement

An operating agreement defines ownership, roles, and operational rules. It's not always required, but you can write this yourself or pay an attorney or 澳洲幸运5官方开奖结果体彩网:professional service to write one for you. Hiring a 💯professional service starts at around $35.

Business Licenses and Permits

Depending on your industry and location, you may need one or more local, state, or federal licenses to operate your business legally. Costs may range from $15 to several hundred dollars, depending on the type of business, location, and sometimes sales volume.

Publication 

A few states require you to publish a notice of your LLC formation in a local newspaper. Costs vary based on the length of the 🦄notice and newspaper publication rates.

Ongoing LLC Maintenance Costs

An LLC has ongoing expenses and requirements ♏to keep the business active, legal, and in good standing. These costs can vary b♈y state and business type. Here are some of the most common ones.

Annual State LLC Fees

Some states charge a fee or tax each year for the privilege of operating as an LLC. You may have to pay the fee in the state where your business is registered, even if you don’t do business there. This will cost between $15 and $800, depending on the state.

Registered Agent Fee

If you use a registered agent service to receive documents on behalf of your LLC, you will have to pay an annua𓂃l fee.

Business Licenses or Local Permits

Business licenses typi🌳cally need to be renewed annually by paying an additional fee.

Costs by State

Who Is an LLC Right For?

• Freelancers who want liability protection.
• Small business owners who are looking for protection and simplified taxes.
• Partnerships that want flexibility with shared ownership.
• Real estate investors who want to separate assets and limit risk.
• Therapists, coaches, and consultants who want privacy and professionalism.

Alternatives to an LLC

If an LLC doesn't fit your needs or budget, there are some alternative structures you can consider:   

• Sole proprietorship: This is similar to an LLC but with no legal separation between the business and the owner. You don't have to register the business, but you may need a business license or permit depending on your business.
• Partnership: This is a simple business structure for two or more co-owners. A general partnership doesn't have to be registered. Limited partnerships (LP) and limited liability partnerships (LLP) are similar to an LLC and allow for pass-through taxes. They do have to be registered and will pay registration fees, generally ranging from $100 to $965.
• Corporation: A business entity that's entirely separate from its owners. Business and individual taxation is higher for 澳洲幸运5官方开奖结果体彩网:corporations. A corporation offers the most protection from personal liability, but filing costs are higher.