The cost to form a Limited Liability Company (LLC) can vary depending on the state in which you form your business.
In most states, the filing fee is the most expensive cost associated with forming an LLC. However, there are a few other potential costs to consider, such as the cost of a Registered Agent service or additional requirements depending on the state in which you form your LLC.
Filing Fees
The filing fee to form an LLC is usually around $100, although it can be as low as $50 and as high as $500 in some states. To determine your state’s filing fee, visit the website of the Secretary of State in the state where you plan to form your LLC.
For most states, there are annual business license renewal fees that should be considered ongoing costs of operating your LLC.
Public Notice
In addition to the filing fee, there are a handful of states that also require that you publish a notice in a local newspaper announcing the formation of your LLC. These states include Arizona, Georgia, Nebraska, New York, and Oklahoma. The publishing costs of this public notice can range from $40 to $600, depending on the state in which you form your LLC.
Registered Agent Services
Every state requires that you appoint a registered agent when you form your LLC. A registered agent is a person or business that agrees to receive service of process and other legal documents on behalf of your LLC.
Who Can Be a Registered Agent?
There are a few requirements that must be met in order for someone to serve as your LLC’s Registered Agent.
- The registered agent must have a physical address in the state where you are forming your LLC. A P.O. box is not sufficient.
- The registered agent must be available during normal business hours to accept service of process and other legal documents on behalf of your LLC.
- The registered agent must be able to receive service of process via certified mail.
How Much Does a Registered Agent Service Cost?
If you choose to hire a professional registered agent service, the cost is typically around $100 per year.
You can also act as your own Registered Agent, which is free. However, this is often not recommended because it requires that you list your home address on the public record and makes you available to receive service of process during normal business hours.
Additional Business License Fees
Depending on the type of business you are forming, there may be additional requirements in your state. For example, if you will be selling alcohol, you will need to obtain a liquor license. The cost of this license will vary depending on the type of business you are operating and the state in which you are located.
So, How Much Does It Cost To Form an LLC?
The cost to form an LLC can vary depending on the state in which you form your business and the type of business you are operating. However, in most cases, the filing fee is the most expensive cost associated with forming an LLC.
If you have any questions about the cost to form an LLC or the requirements for your state, it is always best to consult with an attorney or accountant who can help you with legal or tax advice.
