LLC cost by state varies in general with costs ranging roughly from $40 to $500 including the filing fees. Individuals must know the LLC costs by state to understand the expenses they must bear for their business registration. The cost depends on multiple factors, such as worker compensation, cyber liability, commercial property, business type, business interruption insurance, payroll, etc. The following blog highlights the different LLC costs by state and other associated details.
What is an LLC?
A Limited Liability Company or LLC is a business structure in the United States that protects the owners from personal financial risks related to debts and liabilities. Business owners also enjoy specific tax advantages by registering their organizations as LLCs.
Each US state may use different LLC regulations, and the costs may vary accordingly. It is advised to seek a recommendation from a lawyer if anyone wants to start an LLC and check which state’s laws will apply to the business.
How to Register an LLC
The good part about LLC formation is that anyone can register by following simple steps.
Name the LLC:
The process begins by naming the LLC one should do, keeping the following things in mind.
- Check if the name is available for use in the state.
- Investigate if the name meets the state’s naming requirements.
- Check if the chosen LLC name is available as a web domain.
A business owner can also seek a lawyer’s help to select an LLC name that complies with state laws.
Choose a Registered Agent
All LLCs must appoint a specific registered agent in most US states. The agent will act as the main point of contact for the particular LLC. The person will also accept ‘service of process’ during unforeseen circumstances when someone sues the business.
The LLC registered agent must fulfill the following eligibility criteria.
- The registered individual must be at least 18 years old.
- The person must have a physical address in the LLC state.
- The agent must be available during normal business hours to accept the ‘service of process.’
An experienced lawyer can help business owners get an LLC registered agent quickly.
File the Articles of Organization
Articles of organization are the certificates of organization or formation. The certificates are documents filed from a particular state to form an LLC. The business owners have to pay a specified amount to file the articles of organization in any US state.
Create the Operating Agreement
An operating agreement is a document that outlines the ownership and all operating procedures of a particular LLC. It ensures that all business owners remain on the same page and reduces the risk of future conflict.
Get the EIN
An Employee Identification Number or EIN is a nine-digit number issued in the United States by the Internal Revenue System (IRS). It helps identify a particular business for tax reporting purposes. The EIN is a Social Security Number (SSN) for any company.
The EIN for LLC is required to open a business bank account, hire employees, and for state and federal tax purposes.
LLC Cost by State
The LLC filing fees in the United States range between $40 to $500. Reports suggest that the average cost of forming an LLC is around $132. There are two different types of LLC fees that an individual must pay to form or register the business.
LLC Filing Fee
A one-time fee is paid to a particular state to form an LLC.
LLC Annual or Biennial Fee
It is an ongoing mandatory LLC fee that is paid after every one or two years.
Here is a list of LLC costs by state that business owners must know.
State LLC LLC Filing Fee Annual or Biennial Fee Alabama LLC $200 $100 (annual) Alaska LLC $250 $100 (biennial) Arizona LLC $50 No fee or information report Arkansas LLC $45 $150 (annual) California LLC $70 $800 (annual) + $20 (biennial) Colorado LLC $50 $10 (annual) Connecticut LLC $120 $80 (annual) Delaware LLC $90 $300 (annual) Florida LLC $125 $138.75 (annual) Georgia LLC $100 $50 (annual) Hawaii LLC $50 $15 (annual) Idaho LLC $100 No fee but a mandatory information report Illinois LLC $150 $75 (annual) Indiana LLC $95 $31 (biennial) Iowa LLC $50 $30 (biennial) Kansas LLC $160 $50 (annual) Kentucky LLC $40 $15 (annual) Louisiana LLC $100 $35 (annual) Maine LLC $175 $85 (annual) Maryland LLC $100 $300 (annual) Massachusetts LLC $500 $500 (annual) Michigan LLC $50 $25 (annual) Minnesota LLC $155 No fee but a mandatory information report Mississippi LLC $50 No fee but a mandatory information report Missouri LLC $50 No fee or information report Montana LLC $70 $35 $20 (annual) Nebraska LLC $105 $13 (biennial) Nevada LLC $425 $350 (annual) New Hampshire LLC $100 $100 (annual) New Jersey LLC $125 $75 (annual) New Mexico LLC $50 No fee or information report New York LLC $200 $9 (biennial) North Carolina LLC $125 $200 (annual) North Dakota LLC $135 $50 (annual) Ohio LLC $99 No fee or information report Oklahoma LLC $100 $25 (annual) Oregon LLC $100 $100 (annual) Pennsylvania LLC $125 $70 (every 10 years) Rhode Island LLC $150 $50 (annual) South Carolina LLC $110 No fee or information report South Dakota LLC $150 $50 (annual) Tennessee LLC $300 $300 (annual) Texas LLC $300 No fee but a mandatory information report Utah LLC $54 $18 (annual) Vermont LLC $125 $35 (annual) Virginia LLC $100 $50 (annual) Washington LLC $200 $60 (annual) Washington DC LLC $99 $300 (biennial) West Virginia LLC $100 $25 (annual) Wisconsin LLC $130 $25 (annual) Wyoming LLC $100 $60 (annual)
Key Terms Related to LLC
The LLC laws in the United States can be complicated and not everyone can understand them. That is why it is recommended to know a few key terms related to LLC as mentioned below.
- Administrative Dissolution: It is the dissolution of an LLC by an act of the particular state of the department in charge of different business entities.
- Amendment: It refers to an addition to or deletion from the existing provisions of the operating agreement or articles of organization.
- Cancellation: It is a statutory procedure by which a foreign LLC obtains the consent of a particular state to terminate its authority over business transactions.
- Constituent: It is a party that is a part of a particular transaction.
- Distribution: It refers to the transfer of money or property by an LLC company to a member.
- Voting Rights: It refers to the rights of the members to vote for their specific interests pursuant to particular provisions of the operating agreement.
- Sole Proprietorship: It is an incorporated business with a single owner.
- Reinstatement: It refers to the return of an LLC that is administratively dissolved or had the certificate of authority revoked according to US laws.
- Organization: It is an act of creating or registering for an LLC in the United States.
LLC costs vary from one US state to another and depend on multiple factors related to a business. Moreover, business laws are complicated and not everyone can understand them. That is why it is recommended to take a lawyer’s help when registering an LLC in the United States.
If you are looking for a professional lawyer with experience in LLC registrations, visit ContractsCounsel now. Post a project with your requirements about the attorney on the official website and get the best legal assistance in no time.