LLC Cost by State

LLC cost by state

The cost to form an LLC varies by state, but some mandatory fees are common for all states. Some of these fees are one-time while others are ongoing.

Initial filing fees and annual reporting fees are among the largest LLC costs. Some states also have an annual franchise tax.

Initial Filing Fees

The initial filing fees for LLCs vary from state to state. These fees cover a one-time fee for filing your articles of organization with your state Secretary of State (SOS).

Some states also require you to reserve a business name for your company before it’s formed. The cost for reserving a name typically ranges from $10 to $50, and can be paid at the time of filing or within a specific period of time.

Most states require you to file an annual report or periodic report with the SOS that keeps your business’s contact information updated. These reports usually cost $20 to $100, and can be filed online or in person at the local SOS office.

Annual Filing Fees

A limited liability company (LLC) is a business structure that combines the personal asset protection and flow-through taxation of partnerships with the limited liabilities and profit sharing of corporations. Forming an LLC often makes sense for small businesses that want to scale their operations and increase profitability.

Whether you choose to form an LLC yourself or with the help of a lawyer, the costs of starting an LLC vary from state to state. You may have to pay governmental fees for company formation and additional annual recurring costs such as filing fees, taxes, or registered agent fees.

During the company formation process, each state requires you to pay a filing fee to file articles of organization with your state’s business filing office. Depending on the state, this can range from $50 to $250.

Minimum Annual Taxes

Each state levies LLC taxes differently, and it’s important to know which fees are required and what minimum annual taxes your business will be required to pay.

One way to determine the costs of running an LLC is to look at what other businesses in your jurisdiction are paying. Each state also charges different fees for filing and publishing.

Another factor to consider is what type of income your company earns. Some states levy taxes on business income, such as a franchise tax or a gross receipts tax.

An LLC with employees may also have to pay payroll taxes, such as Social Security and Medicare taxes. These taxes are collected from employers and their employees, and withheld from the employer’s paychecks.

Registered Agent Fees

If you want to start an LLC in New York, you’ll need to reserve a name, file articles of organization, and hire a registered agent. You’ll also need to pay for licenses and permits and various taxes.

A registered agent is a person or business that receives court summonses, tax forms, and other government documents on behalf of an LLC. They must have a physical address in the state where your company is formed.

The cost of a registered agent varies by state, but it can be an important business expense for many companies. It can protect the privacy of your company, help you meet compliance requirements, and save on publishing fees.

Publishing Fees

Many states require LLCs to publish some information in a local newspaper before they can start doing business. The publishing requirements vary from state to state, but the overall cost can range anywhere from a few hundred dollars to several thousand.

New York requires that all new LLCs publish their Articles of Organization in two newspapers for six weeks within 120 days of formation. Afterwards, they must submit a Certificate of Publication and a filing fee.

While this may not sound like a big deal, it’s actually an important part of the process. Failure to do so will lead to the suspension of your company’s permission to conduct business in that state.