When setting up your LLC business, there are certain things you need to know. Initially, you would be required to fill forms for registration and the whole process will cost some money. How much will it cost to set it up? To ascertain the total costs, you need to know how much your state charges for its filing fees, agency fees and if there are any other fees involved.
State regulations most of the time determine the costs of setting up a limited liability company (LLC). Depending on where you intend to set it up, the costs may vary. Here are some of the requirements for setting up an LLC that will give you an idea of how much it will cost.
The first step you take when setting up an LLC is filing the registration forms. The documents of incorporation usually fall between $50 or more depending on your state. Most states specify the costs of filing the incorporation documents. You must file these documents with the relevant agency in your state. Most people prefer to hire a lawyer or use an agency for this process. The cost of hiring a lawyer will be around $1000. Agencies online cost less and the cost of filing online can be anywhere between $99 to $900 to file your incorporation documents.
Another cost you need to consider when setting up your business is tax. After filing your documents of incorporation with the relevant state agency, you will be required to pay some tax. You will also need to acquire a federal tax identification number (EIN) for your business which will be relevant in filing your annual returns in subsequent years. Annual returns can cost about $800 and if you fail to file them, the state can shut down your business. The tax you pay is determined by the revenue your business makes.
The EIN you acquire will be needed to open a business bank account and also for filing your annual taxes. It will also be useful for obtaining credit cards and other financial benefits. It costs nothing to obtain the federal tax number from the IRS. However, you can’t obtain the EIN until your incorporation document for your LLC is approved. If you hire a lawyer or an agency to handle the tax registration, it will cost you about $50 to $100.
Hire A Professional Or DIY?
You have probably seen adverts of agencies offering LLC services for starting your own business online. They handle all the paperwork involved in forming your LLC at a cost. While these offers take away the burden of the work, it will cost you more money to hire a lawyer or an agency. Most online agencies already have the incorporation templates online and all you need to do is fill it out. Even though it may be cheaper to do it yourself, it saves time to hire experts and you can face other parts of your business setup while they handle the registration process.