ContractsCounsel Logo

Incorporation Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,612 reviews
Home Blog Incorporation Cost

Jump to Section

Incorporation cost generally falls from $500 to $700, with most legal offices providing comprehensive services through flat fees. Incorporation cost refers to the expenses associated with forming a legal business entity, such as a corporation, based on the rules and regulations of a place. When starting a business, entrepreneurs often incorporate their company to establish a separate legal entity that offers various benefits and protections. Let us take a closer look at the important aspects of incorporation cost below.

Importance of the Incorporation Cost

Many law firms offer flat fees to cover incorporation costs which range between $500 and $700. Despite such a high cost, clients agree to pay the expenses because incorporation costs serve several important functions when starting a business. Here are some key functions of incorporation costs:

  • Legal Compliance: Incorporation costs ensure that the business entity is established in compliance with the legal requirements of the jurisdiction. The business gains legal recognition and protection by paying the necessary fees and fulfilling the paperwork.
  • Separate Legal Entity: Incorporation costs facilitate the creation of a separate legal entity for the business. This separation establishes a distinction between the business and its owners, shielding personal assets from business liabilities and protecting shareholders from individual legal liability.
  • Professional Guidance: The expenses associated with incorporation often include legal and professional fees. Hiring experienced lawyers or business formation service providers helps ensure that the incorporation process is conducted properly and in accordance with the relevant laws and regulations.
  • Name Protection: By reserving a business name during the incorporation process, the costs associated with name reservation help protect the chosen name from being used by other entities within a specific time frame. This allows the business to establish a unique brand identity and prevent confusion in the marketplace.
  • Access to Funding and Resources: Incorporation can enhance the business's credibility and attractiveness to investors, lenders, and partners. By demonstrating that the business is legally structured and compliant, incorporation costs open doors to potential financing opportunities and partnerships.
  • Perpetual Existence: A corporation has the advantage of perpetual existence, meaning it can continue to operate even if ownership changes or shareholders pass away. Incorporation costs contribute to establishing this perpetual existence, providing stability and continuity to the business.
  • Tax and Financial Benefits: Incorporation can offer tax advantages and financial benefits, depending on the jurisdiction and the business's specific requirements. By investing in incorporation costs, businesses may access tax deductions, favorable tax rates, and potential financial incentives.
  • Limited Liability Protection: One of the primary reasons for incorporation is the limited liability protection it offers shareholders. By paying incorporation costs, owners can separate their personal assets from business liabilities, minimizing the risk of personal financial loss in the event of legal issues or debt.

Factors Influencing the Incorporation Cost

Several factors can influence the incorporation cost of starting a business. The specific elements that impact the total cost may vary depending on the jurisdiction and the complexity of the business structure. Some common factors can influence incorporation costs:

  • Jurisdiction: The jurisdiction where the business is incorporated plays a major role in determining the cost. Countries, states, or provinces have fee structures, filing requirements, and administrative costs associated with incorporating a business. For instance, the incorporation cost for an LLC package in Alaska is $780. However, the same cost goes up to $1000 for an S Corp package in Connecticut.
  • Business Structure: The type of business entity formed can impact the incorporation cost. The complexity of the chosen business structure and the associated legal requirements can influence the overall cost. While an S Corp package can be as low as $480, LLC and nonprofit packages may range up to $1180.
  • Legal and Professional Services: Seeking legal and professional guidance is often advisable when incorporating a business. The fees charged by lawyers, business consultants, or incorporation service providers can vary based on their expertise, experience, and the scope of services required. Complex business structures or specialized legal advice may incur higher costs.
  • Name Reservation: Some jurisdictions allow businesses to reserve a specific name before incorporating. The cost associated with reserving a business name can depend on the jurisdiction and the duration of the reservation. This cost is typically separate from the overall incorporation expenses.
  • Additional Services and Documents: These may be required during the incorporation process depending on the business's specific needs. These include obtaining an employer identification number (EIN), drafting customized bylaws or operating agreements, applying for specific licenses or permits, or conducting additional legal filings. The inclusion of these services will contribute to the overall incorporation cost. For instance, the filing fee for any extra document is $25 in New York.
  • Registered Agent: Many jurisdictions require businesses to have a registered agent. The person acts as a point of contact for receiving legal and official documents on behalf of the company. Registered agent services may involve an annual fee, influencing the overall incorporation cost. Such services will cost around $100-$300 annually.
  • State or Provincial Fees: Some jurisdictions impose annual fees or franchise taxes on incorporated businesses. These fees can differ depending on factors such as the company's revenue, the number of authorized shares, or other relevant criteria. It's important to consider these ongoing fees when assessing the overall cost of incorporation.
Meet some lawyers on our platform

Brian R.

1 project on CC
View Profile

Janice K.

1 project on CC
View Profile

Daehoon P.

159 projects on CC
View Profile

Connie C.

8 projects on CC
View Profile

Benefits of the Incorporation Cost

Despite being an initial financial investment, incorporation costs offer several benefits for businesses. Here are some key advantages associated with incorporation costs:

  • Credibility and Professionalism: Incorporation adds credibility and professionalism to a business. Being a registered and legally recognized entity can enhance the reputation and perception of the company among customers, suppliers, investors, and potential partners.
  • Perpetual Existence: Incorporation allows a business to have perpetual existence. Corporations have a separate legal existence, unlike sole proprietorships or partnerships, which may dissolve or face complications in the event of an owner's departure or death.
  • Access to Financing: Involving a business can improve its chances of getting finances from lenders, investors, and financial institutions.
  • Tax Benefits: Incorporation may provide flexibility in managing taxes, such as the ability to retain earnings within the company or distribute profits in a tax-efficient manner.
  • Brand Protection: Incorporation costs often include preserving and protecting a business name. By registering a unique name, the business can establish a distinct brand identity and prevent others from using the same or similar name in the same industry or jurisdiction.
  • Transfer of Ownership: Incorporation simplifies the transfer of ownership interests. With share certificates and clearly defined procedures for buying or selling shares, corporations offer a structured and transparent mechanism for transferring ownership.

Key Terms for the Incorporation Cost

  • Filing Fees: The mandatory charges imposed by the government or regulatory authorities to process the incorporation documents and register a business entity.
  • Legal Compliance Expenses: The costs associated with ensuring that the business adheres to legal requirements, including drafting and reviewing legal documents, obtaining necessary licenses, and complying with corporate governance standards.
  • Registered Agent Fees: The annual fee paid to a registered agent who acts as the official point of contact for receiving legal and official documents on behalf of the incorporated business.
  • Name Reservation Costs: The expenses incurred for reserving a specific business name before the incorporation process to prevent other entities from using the same name within a designated period.
  • Professional Services Fees: The charges for hiring legal and professional service providers, such as lawyers or incorporation service providers, who offer expertise and assistance in navigating the incorporation process, drafting necessary documents, and providing legal advice.

Final Thoughts on the Incorporation Cost

Incorporation costs may represent an initial financial investment, but they offer long-term benefits for businesses. By paying the necessary fees and fulfilling legal requirements, businesses gain limited liability protection, enhanced credibility, access to financing, and potential tax advantages. Incorporation also provides a structured framework for ownership transfer, brand protection, and compliance with legal formalities. While the specific costs may vary based on jurisdiction, business structure, and additional services required, the advantages of incorporation make it a worthwhile investment for businesses seeking stability, growth, and legal protection.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

Meet some of our Lawyers

Daehoon P. on ContractsCounsel
View Daehoon
4.7 (95)
Member Since:
November 26, 2021

Daehoon P.

Corporate Lawyer
Free Consultation
New York, NY
8 Yrs Experience
Licensed in NY
American University Washington College of Law

Advised startups and established corporations on a wide range of commercial and corporate matters, including VC funding, technology law, and M&A. Commercial and Corporate Matters • Advised companies on commercial and corporate matters and drafted corporate documents and commercial agreements—including but not limited to —Convertible Note, SAFE, Promissory Note, Terms and Conditions, SaaS Agreement, Employment Agreement, Contractor Agreement, Joint Venture Agreement, Stock Purchase Agreement, Asset Purchase Agreement, Shareholders Agreement, Partnership Agreement, Franchise Agreement, License Agreement, and Financing Agreement. • Drafted and revised internal regulations of joint venture companies (board of directors, employment, office organization, discretional duty, internal control, accounting, fund management, etc.) • Advised JVs on corporate structuring and other legal matters • Advised startups on VC funding Employment Matters • Drafted a wide range of employment agreements, including dental associate agreements, physician employment agreements, startup employment agreements, and executive employment agreements. • Advised clients on complex employment law matters and drafted employment agreements, dispute settlement agreements, and severance agreements. General Counsel • As outside general counsel, I advised startups on ICOs, securities law, business licenses, regulatory compliance, and other commercial and corporate matters. • Drafted or analyzed coin or token sale agreements for global ICOs. • Assisted clients with corporate formations, including filing incorporation documents and foreign corporation registrations, drafting operating and partnership agreements, and creating articles of incorporation and bylaws. Dispute Resolution • Conducted legal research, and document review, and drafted pleadings, motions, and other trial documents. • Advised the client on strategic approaches to discovery proceedings and settlement negotiation. • Advised clients on employment dispute settlements.

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (256)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, IL
13 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Michael K. on ContractsCounsel
View Michael
5.0 (37)
Member Since:
June 28, 2021

Michael K.

Associate Counsel
Free Consultation
Miami, FL
5 Yrs Experience
Licensed in FL
St. Thomas University School of Law

A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.

Jesse A. on ContractsCounsel
View Jesse
5.0 (3)
Member Since:
August 1, 2023

Jesse A.

Free Consultation
Kingsford, Michigan
12 Yrs Experience
Licensed in MI, WI
University of Illinois-Chicago

General practice attorney with experience in civil litigation, family law, criminal law, estate planning, business formation, real estate and business transactions.

Diamond R. on ContractsCounsel
View Diamond
Member Since:
July 30, 2023

Diamond R.

Free Consultation
Houston, Texas
1 Yr Experience
Licensed in DC, NY, WA
Wayne State University

July 29, 2023 My name is Diamond Simpson Roberts, ESQ, MSPH and I am convinced that I can be a value added asset to most any company. As the first in my family to graduate a four-year university, I graduated from Wayne State University Law School in 2000 but could not afford a bar prep course upon completion. After over 20 years, I sat for the July 2022 UBE, successfully passed and am currently licensed in three states! This is an example of my self-motivation, internal drive and passion. I offer over 28 years of diverse experience in healthcare, strategy, sales/marketing, legal/policy and business savvy. I have many years building, leveraging, and sustaining long term relations to drive revenue as an entrepreneur and for corporations. My analytical strengths provide me with an innate ability to think through tough situations/topics while viewing both vantage points (which is excellent for law and life). I have been appointed to serve on numerous committees due to my heightened ability to identify client issues and priorities and provide solutions based upon relevant products, services and needs. I have led teams with and without authority; specifically, I have managed teams for an Adult Foster Care Facility called Etonne Cares, during my post-graduate fellowship with the largest Catholic Healthcare System in the U.S. and during my two-year executive order appointment with the Federal Government (Presidential Management Fellowship). Most importantly, I am a collaborative team player who knows how to improvise, overcome and adapt! I offer numerous years of being a pharmaceutical trainer and being an adjunct using the online platform. I welcome the opportunity to continue in the interview so that I may further highlight the skills I can (and will) contribute to my success in the role. Respectfully, Diamond Simpson Roberts, ESQ, MSPH DQSSIMPSON@GMAIL.COM M: 313-942-6747

Esra A. on ContractsCounsel
View Esra
Member Since:
July 30, 2023

Esra A.

Free Consultation
Atlanta, Georgia
7 Yrs Experience
Licensed in GA
University of Georgia School of Law (LLM)

I have worked on various types of contracts throughout my career. My most current experience is the Contract Specialist role at a tech startup called Worksome. During my time there, in addition to managing day-to-day contract related tasks, I also drafted a new master services agreement and new online terms and conditions for the company.

Benjamin M. on ContractsCounsel
View Benjamin
Member Since:
August 1, 2023

Benjamin M.

IP Attorney
Free Consultation
Atlanta, Georgia
2 Yrs Experience
Licensed in GA
Michigan State University

To begin his legal career, Ben was a legal fellow with Georgia Lawyers for the Arts. Ben also assisted Michigan State University in protecting its registered intellectual property as lead intellectual property (IP) intern for Michigan State University's Center for Anti-Counterfeiting and Product Protection (A-CAPP Center). During this time, Ben organized and moderated a panel discussion with U.S. Customs and Border Patrol agents for A-CAPP's annual Brand Protection Strategy Summit. Ben was selected to join a team of law student interns in Lovran, Primorje-Gorski Kotar, Croatia, to handle matters involving cybercrime, international copyright, the Uniform Domain-Name Dispute-Resolution Policy and the General Data Protection Regulation. Before studying law, Ben worked for Core Security and Meridian Link as a software QA engineer. As a member of Million Dollar Minds Entertainment (Est. 2006) Ben produced countless commercial music recordings, engineered hundreds of songs, and served as executive producer seven studio albums. Ben enjoys spending time with his wife and two daughters. He is an alumnus of The South Carolina State University and Michigan State University College of Law.

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need to file articles of incorporation?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city