Price of starting an LLC [Expert Guide]

Last updated : Sept 12, 2022

Written by : Bernardo Estremera

Current : 2058

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How much does it cost per year to have an LLC?

All Utah LLCs need to pay $18 per year for the Annual Report (aka Annual Renewal). These state fees are paid to the Division of Corporations. And this is the only state-required annual fee. You have to pay this to keep your LLC in good standing.

Do you have to pay the $800 California LLC fee the first year?

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.

How much is a LLC in AZ?

How much does it cost to form an LLC in Arizona? The Arizona Corporations Commission charges a $50 fee to file the Articles of Organization. It is an additional $35 for expedited processing.

How much does an LLC cost in Kansas?

How much does it cost to form an LLC in Kansas? The Kansas Secretary of State charges $165 to file the Articles of Organization. You can reserve your LLC name with the Kansas Secretary of State for $30 when filing online or $35 when filing by mail.

Which state has the lowest LLC tax rate?

Range for individual income tax rates: None.
Average combined state and local sales tax rate: 1.76% (no state sales tax)
Effective property tax rate for homes: 1.02%
State ranking for business-friendly legal environment: 5.
LLC filing fee: $250.
LLC annual fee: $100.

Do I need an LLC?

You don't need an LLC to start a business, but, for many businesses the benefits of an LLC far outweigh the cost and hassle of setting one up. by Jane Haskins, Esq. An LLC, or limited liability company, provides personal liability protection and a formal business structure.

Can LLC Get tax Refund?

Do LLCs get tax refunds? Generally, no. However, LLCs can elect to be treated like C corporations for tax purposes by filing Form 8832. If an LLC elects C corporation status and makes quarterly estimated payments higher than its tax liability for the year, the LLC can receive a tax refund.

How do I avoid LLC tax in California?

Can I avoid the California Franchise Tax? There's no way for a registered business to legitimately avoid the California Franchise Tax. Sole proprietors and general partnerships don't have to pay the California Franchise Tax, but they also don't have any personal liability protection.

How do I start an LLC in California for free?

To form an LLC in California, go to bizfileOnline.sos.ca.gov, log in, select Register a Business under the Business Entities Tile, Articles of Organization - CA LLC and follow the prompts to complete and submit.

What taxes do LLC pay in Arizona?

LLC Tax Returns Arizona Tax: The corporate tax rate is 6.968% of net income. If the LLC elects to be taxed as a Corporation, the minimum tax will be $50.

How long does it take to set up an LLC in Arizona?

Though processing times vary depending on the number of pending applications, it generally takes a little under two months to process an LLC registration in Arizona. Most applicants report the process takes 50 â€“ 55 days. If time is of the essence, you can pay an additional fee for expedited processing.

Do I have to renew my LLC Every year in Arizona?

Unlike most other states, Arizona does not require LLCs to file annual reports.

What do I need for an LLC in Kansas?

To form a Kansas LLC you'll need to file the Articles of Organization with the Kansas Secretary of State, which costs $160-$165. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Kansas Limited Liability Company.

What do I need to get an LLC in Kansas?

Forms. Complete and submit an Articles of Organization form to the Kansas Secretary of State.
Fees.
Limited liability company operating agreement.
Taxes.

How long does it take to set up an LLC in Kansas?

You can get an LLC in Kansas immediately if you file online (or 2-3 weeks if you file by mail).

Where is the best place to set up an LLC?

Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners.
Wyoming offers low fees and great tax benefits for people looking to start an LLC.

What state is best for self employed?

Florida. Total Score: 7.03.
Texas. Total Score: 6.62.
Idaho. Total Score: 6.47.
Utah. Total Score: 6.26.
Arizona. Total Score: 6.07.
Oregon. Total Score: 6.00. Tax Climate: 4.75.
Wyoming. Total Score: 5.96. Tax Climate: 10.00.
Nevada. Total Score: 5.94. Tax Climate: 5.84.

What state has no business tax?

Nevada, South Dakota, and Wyoming have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire and Montana have no sales tax.

How does an LLC protect you?

Personal asset protection. An LLC provides its owner or owners with limited liability. This means that means youâ€”the LLC ownerâ€”are generally not personally liable for any debts incurred by your LLC business or most business-related lawsuits.

What is a good name for an LLC?

Make It Legal. The most important thing when you're choosing an LLC name is to make sure it's legal.
Make It Memorable. You want your LLC name to be something people can remember.
Make It Meaningful.
Make It Original.
Make It Distinctive.
Make It Domain Name Ready.
Make It Social Media Friendly.

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Comment by June Rushen

the process of forming an LLC is different in every state and the costs are different as well in this video we will give you a general overview of the fees you will need to pay when you start an LLC as well as those you need to pay to maintain it over time we will also address fees that you do not have to pay to form an LLC so make sure to watch to the end to save some money forming an LLC requires you to pay a one-time state filing fee in addition to ongoing annual maintenance fees first let's take a look at one time filing fees the main cost when forming an LLC is typically the fee of filing your articles of organization with the state this one-time payment ranges between 40 and 500 dollars depending on your state visit our site to determine the exact filing costs for your particular state several states Arizona Nebraska and New York also require your newly incorporated LLC to publish a statement of formation in a local newspaper these publishing costs can be anywhere from forty to two thousand dollars depending on your state specific requirements visit our site for strategies to publish in your state as cheaply as possible in addition to the initial formation fees there are regular maintenance fees that you'll need to pay to keep your LLC in good standing let's take a look at these now annual biennial report most states require LLC's to submit a fee along with an annual or biennial report which includes updating the name and address with the LLC the report fee varies state by state but in most cases is less than $50 per year some states levy a yearly tax on LLC's often call the franchise tax this is most often a flat tax but can also vary accordingly to your LLC's annual earnings in certain states for instance California LLC's must pay a yearly $800 franchise tax if they make less than 250 thousand dollars and more if they earn more than 250 thousand dollars to calculate the specific costs of maintaining an LLC in your state visit our website for an additional cost of 50 to 150 dollars you can use the professional formation service to create your LLC this can save you both time and the headache of filling out legal paperwork various service providers have different packages which generally charge for LLC formation registered agent service creating your LLC's operating agreement obtaining an employer identification number E I n from the IRS researching which business licenses your LLC will need you may not want all of these services so shop around for different providers and packages you can also visit our site for reviews of the top five formation services the value of a hired professional service goes beyond the convenience however using a service for your registered agent means that they are the first point of contact for all inquiries allowing for an enhanced level of personal privacy of course you should be mindful of certain aspects of LLC formation that are either free or unnecessary if you are looking to save money you can avoid the following research your LLC's name a service may offer this but you can perform a name search for free on your state's website LLC kitten seal these types of fancy documentation are a vanity product and unnecessary from a legal standpoint yah n if forming an LLC on your own you can get your employer identification number for free from the IRS visit our site how to start an LLC com to get all the specific details regarding the costs of setting up an LLC in your state not only do we gather all the essential information in one place we also offer other free resources and tools for getting your business up and running check out the links in the description below and please give us a like and subscribe if you appreciate our content we are dedicated to providing the most useful information for small business owners and would love to see your feedback in the comments on what other information you need to help follow your entrepreneurial dreams you

Thanks for your comment June Rushen, have a nice day.
- Bernardo Estremera, Staff Member

Comment by podlegame

so you decided to move forward with your business idea whether that's selling products online being a consultant investing into real estate or being a 1099 contractor you decided that becoming an llc was the best option and in this way you have limited liability in case someone decides to sue your business they can't go after your personal assets this is the number one benefit of having an llc but what are the costs associated with starting an llc if you've done any research into it you've probably seen a lot of different fees and may not be 100 sure which ones are necessary today i will go over the necessary costs of starting an llc and the costs that you can avoid hey guys i'm crystal cpa at life accounting where we help you boost your profits and reduce your taxes if you're new welcome glad to have you here we post multiple videos weekly about business accounting and tax related topics if this interests you at all please do me and yourself a favor by subscribing to our channel also let me mention by no means am i giving you legal or financial advice as this video is for informational purposes only with that said i'll be sharing the cost associated with starting an llc and some costs you can completely avoid let's jump right into it the very first cost you should be aware of is state filing fees this is a necessary cost for starting your llc every state has its own filing fee in arizona it's 50 nevada 75 georgia's 100 new jersey is 125. alabama is 200. as you can see the fees generally range between 50 to 200 which is the case for nearly all 50 states the only outlier is massachusetts which has an llc filing fee of 500 so what does this fee cover in most cases the filing fee covers cost of filing your articles of organization with the state some business owners may want their articles of organization to be prepared by a lawyer in which case you can expect to pay anywhere between one thousand to two thousand dollars of course there's a diy option but you run the risk of errors the articles of organization generally includes your llc name address registered agent name and address how the llc will be operated and managed and a statement of purpose if you're confident you can file this information correctly with your state then you certainly can it is not legally required that a lawyer prepare this for you so if you want to save one to two thousand dollars it's completely possible for you to do so once you register your llc there's going to be an annual maintenance fee you have to pay to the state to keep your llc active similar to the filing fees it varies by state but generally ranges from 20 to 300 there are some more expensive states like rhode island with an annual fee of 450 or california being the highest of the mall at 800 dollars per year in annual llc fees usually you have to submit some kind of annual report with your annual fees indicating if any changes to the business have occurred again you could pay someone to do this for you but for the majority of you this is something that you can completely do on your own where i see llc owners waste a lot of time and money is registering their llc in a different state from where they live which i get states like michigan or iowa have really low filing and annual fees however if you register your llc in a state different than the state you live in you'll be considered a foreign llc in your resident state and as a foreign llc you'll have to file a certificate of authority and pay registration fees and depending on the state you may also have to pay state franchise taxes all of this is in addition to the filing and annual fees you'll have to pay in the state the llc is registered in unless you're a special case it's generally best to register your llc in the state you live to save those additional costs when you do file your llc there are some states like new york and nebraska that require new llcs to publish a notice of their formation in a newspaper usually the ad must run for a certain time period which can be expensive and cost you easily over a thousand dollars in new york city so we've gone over the required costs in forming your llc but there are some optional costs to consider like registered agent fees if you recall when you file your articles of organization you have to include your registered agent's name and address you can be your own registered agent but you may find it beneficial to pass this responsibility off to another organization a registered agent is a person or business that will receive legal and other documents on behalf of your business such as tax notices or subpoenas if you're a business owner who travels a lot or has a lot of off-site meetings or just generally not around during regular business hours monday through friday it would be wise to hire an outside party to be your registered agent also having an outside registered agent gives you some level of privacy registered agent information is public record which could be of concern if you have a home-based business to hire a registered agent will cost you anywhere between 50 to 500 per year and varies between companies now the cost associated with hiring a lawyer usually includes other services besides just registering your llc with the state like applying for your ein number setting up your bank account or even being your registered agent however you should know it is completely free to get your ein from the irs by applying for it on their website ein is usually available within 24 to 48 hours you also don't need to pay anyone to set up your bank account as i'm sure you've already set up a personal account on your own and your input is needed anyway to complete that process but some people are just not fully comfortable with performing these tasks and if that's you hiring a lawyer to help you along the way is not a bad idea though not required informing your llc is having an operating agreement lawyers can assist with this as well or you can find a template online for one to two hundred bucks the only issue with these templates is that it may not speak directly to the operational details of your particular business so it is important to have an operating agreement that is catered to your business other fees you may come across but are not completely necessary are llc name research fees you can actually look up llc names on your state secretary of state website and see if your llc name is available llc kit and seal which is just a binder that holds your company's documents and a seal used to emboss llc documents if you use a third-party site to start your llc you may see them try to upsell you on this but it's just not necessary rush fees usually when you first file your llc it takes about 10 to 14 days to be approved the state will offer you a rush option for an extra fee this is completely unnecessary though if you are needing the llc as soon as possible to execute a contract or something like that then this is a good option for you that's it for today's video hopefully you understand now what fees are required and not required to start your llc if this video was at all helpful please give it a like or

Thanks podlegame your participation is very much appreciated
- Bernardo Estremera

About the author

Bernardo Estremera

I've studied history of the roman empire at Menlo College in Atherton and I am an expert in international organizations. I usually feel full. My previous job was radio & tv program director I held this position for 10 years, I love talking about psychology and racquetball. Huge fan of Kid Rock I practice commonwealth games and collect trading cards.

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