The cost to form an LLC in the United States varies depending on several factors, including the state of formation, additional services required, and whether you choose to use a professional service to assist with the formation. Here are the typical costs involved:
- State Filing Fees: These fees range from $50 to $500, depending on the state. For example, Delaware charges $90, while California charges $70 but has an $800 annual franchise tax.
- Registered Agent Fees: If you hire a registered agent service, it typically costs between $50 to $300 per year.
- Operating Agreement: While you can draft this document yourself, professional drafting services can cost anywhere from $50 to $200.
- EIN Application: Obtaining an EIN from the IRS is free, but professional services may charge a fee of $50 to $100.
- Professional Service Fees: If you use an incorporation service, expect to pay between $50 and $500, depending on the level of service and additional features offered (e.g., expedited filing, compliance assistance).
- Publication Fees: Some states (e.g., New York) require you to publish a notice of formation in local newspapers, which can cost $100 to $2000.
- Annual Fees: Most states require an annual report or franchise tax, which can range from $50 to $800.
Example Breakdown:
- State Filing Fee: $100
- Registered Agent Service: $100/year
- Operating Agreement: $75
- Professional Service: $150
- Publication (if required): $300
Total Initial Cost: $425 to $725 (without publication)
Annual Costs: $50 to $800 (depending on state requirements and registered agent fees)
Note:
Costs can vary significantly, so it’s advisable to check the specific fees for your chosen state and evaluate whether you want to handle the process yourself or use a professional service.
