Multi-Member LLC Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,787 reviews

Jump to Section

Need help with a Multi-Member LLC?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does a multi-member LLC cost? If two or more people are planning on starting a business, they may have questions about the cost of a multi-member LLC. Let’s explore this question and review general information about multi-member LLC costs and formation.

How Much Does a Multi-Member Cost?

A multi-member LLC is one type of business entity that a business owner can choose when establishing a new company. It is set up just like a regular limited liability company, except for more than one owner.

Owners of an LLC are called members. Multi-member LLCs can have an unlimited number of members. Members can be individual people or other business entities like LLCs or S-Corps.

A multi-member LLC offers members several advantages like liability protection, tax benefits, and flexibility and freedoms that other business entities don’t have. It is the perfect business structure for a married couple starting a business together or a family-owned business.

Forming a multi-member LLC requires the drafting and filing of several documents. Each state will have different requirements and filing fees. It is recommended that new business owners hire a business lawyer to draft these important documents and the filing process.

When establishing a multi-member LLC, members can incur filing fees, legal fees, licensing fees, and some tax fees. Based on ContractsCounsel’s marketplace data, the average cost of a multi-member LLC is $873.75.

How to Form a Multi-Member LLC

Multi-member LLCs are relatively easy to form, but the process and fees will differ depending on the state in which you establish the business. Suppose you are unfamiliar with your state’s laws and regulations for LLCs. In that case, you should consult with a local attorney to guide you through the process.

To form a multi-member LLC, follow these steps:

  • Step 1: Choose a Name. A multi-member LLC needs a unique name not being used in your state. Every state has a searchable database to ensure the name isn’t already used. The business name must include the phrase “limited liability company” in some form (LLC, L.L.C).
  • Step 2: Appoint a Registered Agent. The registered agent is responsible for receiving important legal and tax documents on behalf of the business. The registered agent can be a member or a private third party. They typically need to be a state resident where the LLC is formed.
  • Step 3: File Articles of Organization. Articles of Organization is a formal legal document filed with the state to establish an LLC. This document includes the LLC name, the nature of the business, the name of the registered agent, and the names of all the members.
  • Step 4: Create an Operating Agreement. Most states do not require an operating agreement, but it is good practice to have one, especially for a multi-member LLC. A multi-member LLC operating agreement outlines the ownership and operating procedures of an LLC. It can be vital in preventing and handling disputes within the company.
  • Step 5: Obtain an EIN. You will need an employer identification number ( business EIN ) to open a bank account for the company and file your business taxes.
Meet some lawyers on our platform

Zachary J.

81 projects on CC
View Profile

Briana C.

63 projects on CC
View Profile

Elbert T.

3 projects on CC
View Profile

Ryenne S.

192 projects on CC
View Profile

Advantages of a Multi-Member LLC

Multi-member LLCs are a popular choice for a business structure when establishing a new business with multiple owners because this type of entity offers many advantages. Members will benefit from the liability protection without all the strict regulations that C-Corps and S-Corps must adhere to.

Some advantages include:

  • Unlimited number of members
  • Members do not have to be US citizens
  • No corporate taxes
  • Flexible tax options
  • Option to be treated as a corporation

Multi-Member LLC Taxes

One of the most significant benefits of a multi-member LLC is the flexibility of tax options. Multi-member LLCs are taxed like a partnership and benefit from pass-through taxation by default. This means that each member must file their share of business profits and losses with their individual tax returns.

Multi-member LLCs also have the option of filing IRS Form 2553, which is an election to be taxed as an S Corp. Members can also agree to file IRS Form 8832, which would elect the LLC to be taxed as a C-Corp.

Each of these tax options has different advantages and disadvantages. All members must agree to change the business's tax status.

Multi-Member LLC Projects

Multi-Member LLC Formation

Multi-member LLC formation requires the drafting and filing of several important documents, like articles of organization, with the state in which the business is being formed. It is common for members to hire an LLC lawyer to ensure the documents are correctly drafted and filed to avoid mistakes and delays.

An attorney experienced in multi-member LLC formation can assist you in drafting your articles of organization and making sure these documents are filed with the correct office.

Multi-Member LLC Operating Agreement Drafting

A multi-member LLC operating agreement is especially important for a multi-member LLC because it lays out how it will be governed and run. This allows all members to understand their roles and responsibilities within the LLC, reducing the risk of disagreements.

The operating agreement will dictate how the company is managed, how profits and losses are divided, and how voting will work within the LLC. It will also lay out procedures for how a member can leave the LLC or if a member dies.

For this reason, it is encouraged to hire an experienced business lawyer to assist in drafting the operating agreement to ensure there are no mistakes and protect all members' interests.

Multi-Member LLC Formation Cost

Multi-member LLC formation costs can include filing fees, legal fees for document drafting and review, and license fees. These fees will vary based on the state.

ContractsCounsel’s marketplace data shows the average multi-member LLC formation costs to be $873.75 across all states and industries.

Operating Agreement Cost

Suppose members of an LLC choose to hire a lawyer to draft or review the operating agreement. In that case, the LLC will have to pay for the attorney’s time and legal services. This may include consultations, drafting the documents, revisions, and communication with the members.

ContractsCounsel’s marketplace data shows the average operating agreement cost to be $791.86 across all states and industries.

How Do Lawyers Charge for a Multi-Member LLC Project?

Hourly Rates for Multi-Member LLC Projects

Hourly rate fee structures are one way that an LLC lawyer may charge their clients. When lawyers use this method, they will charge their clients a set rate for each hour spent working on a project. Hourly rate fee agreements ensure that the lawyer is compensated for all time spent working on a project or case.

ContractsCounsel’s marketplace data shows the average hourly rate for an LLC lawyer range from $200 - $350 per hour.

Flat Fee Rates for Multi-Member LLC Projects

Suppose a lawyer is hired for a specific project like drafting an operating agreement. In that case, they may elect to quote their client an upfront flat fee rate that covers all legal costs for the specific task.

It is crucial to ensure the client knows what’s included with the fee before starting the project because it may not include revisions, communications, or consultations.

ContractsCounsel’s marketplace data shows the average flat fee rate for multi-member LLC projects are $873.75.

Get Help with a Multi-Member LLC

Do you need help with a multi-member LLC project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from contract lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Daniel R. on ContractsCounsel
View Daniel
5.0 (19)
Member Since:
January 1, 2023

Daniel R.

Business and Real Estate Atttorney
Free Consultation
New York
27 Yrs Experience
Licensed in NY
New York Law School

NY Admitted Lawyer 20+ years of experience. Focused on Startups , Entrepreneurs, Entertainers, Producers, Athletes and SMB Companies. I have been a part of numerous startups as Founder, CEO, General Counsel and Deal Executive. I have been through the full life cycle from boot strap to seed investors to large funds-public companies to successful exit. Let me use my experiences help you as you grow your business through these various stages. We saw a market for an on-line platform dedicated to Virtual General Counsel Services to Start Ups and Private Companies.

Patrick N. on ContractsCounsel
View Patrick
5.0 (2)
Member Since:
January 18, 2023

Patrick N.

Attorney at Law
Free Consultation
6 Yrs Experience
Licensed in MA
Suffolk University Law School

Before attending law school, I had a prior career in business performance reporting. This experience differentiates me from other attorneys. I can readily read, interpret, and synthesize financial reporting. I also have a passion for legal research and writing.

Wendy C. on ContractsCounsel
View Wendy
5.0 (8)
Member Since:
January 17, 2023

Wendy C.

Free Consultation
5 Yrs Experience
Licensed in AZ, TX
Arizona Summit Law School

Business transactions attorney who is well-verse in general corporate matters, fundraising, and negotiation in technology, blockchain, and consumer product industry

Jonathan M. on ContractsCounsel
View Jonathan
5.0 (1)
Member Since:
January 18, 2023

Jonathan M.

Free Consultation
Charlotte, NC
13 Yrs Experience
Licensed in NC, SC, VA
Charlotte School of Law

Owner and operator of Meek Law Firm, PC. Meek Law Firm provides comprehensive business law representation, precise and informed representation for real estate transactions in the commercial and residential markets of North and South Carolina and efficient succession and estate planning for business owners and individuals.

James M. on ContractsCounsel
View James
Member Since:
January 4, 2023

James M.

Free Consultation
Boise, Idaho
5 Yrs Experience
Licensed in CA, ID, OR
Stanford Law School

Reproductive law attorney focused on reviewing surrogacy contracts and sperm/egg/embryo donation contracts.

Christopher N. on ContractsCounsel
View Christopher
Member Since:
January 10, 2023

Christopher N.

Managing Partner
Free Consultation
25 Yrs Experience
Licensed in PA
Widener University Commonwealth School of Law

Christopher Nuneviller has practiced in the securities, venture capital, corporate and emerging business sectors, and as a contract-advisor to the federal government, a federal government senior level executive, and as Army Judge Advocate. Like you, he also he is a partner in other business ventures and faces the same pressure to succeed, be profitable, and stay sane, all while making his clients, employees, family and business partners happy. As the managing partner for Philadelphia's MNB Meridian Law, Ltd., his focus is on assisting small and mid-sized businesses grow and thrive. As a business generalist, Christopher provides advice and counsel to businesses, their owners, investors and shareholders on matters ranging from formation, organization, governance, routine and special operations, and growth toward IPO. Christopher is also a former U.S. Army Judge Advocate having served seven years in Washington, D.C. where he gained significant experience with "above the fold" matters of great import and an unhealthy insight into the internal workings of the "beltway" underbelly. Mr. Nuneviller is admitted to practice in the Commonwealth of Pennsylvania, and before the Supreme Court of the United States, the Court of Federal Claims, and the Court of Appeals for the Armed Forces.

Dayton M. on ContractsCounsel
View Dayton
Member Since:
January 17, 2023

Dayton M.

Free Consultation
1 Yr Experience
Licensed in WV
West Virginia University College of Law

Business Law - Criminal Defense - Immigration

David A. on ContractsCounsel
View David
Member Since:
January 23, 2023

David A.

Family Lawyer
Free Consultation
41 Yrs Experience
Licensed in FL
University of Florida

Graduated UF Law 1977. 40 years experience in Family Law/Divorce and Prenuptial Agreements. Rated "AV Preeminent" By Martindale Hubble, the oldest lawyer rating firm in the USA. Top 5% of attorneys in Florida as reviewed by Judges and other Lawyers (not client reviews). Personal prompt service and easy to contact--available 24/7. Good negotiator and very personable. My clients are my priority.

Charles K. on ContractsCounsel
View Charles
Member Since:
January 22, 2023

Charles K.

Free Consultation
New York, NY USA
40 Yrs Experience
Licensed in NY
University of Illinois Chicago School of Law (John Marshall)

~ Charles Kramer - Technology, Contracts and Intellectual Property Attorney ~ I am a New York corporate and technology attorney. My experience includes: - representing high-tech companies (including software, military, manufacturing and computer game companies) in connection with negotiating and drafting (1) toolkit, enterprise, Saas, PaaS and other complex agreements and licenses with companies around the world; (2) joint-venture, sales, publishing and distribution agreements; and (3) general corporate agreements. - 5 years as General Counsel of a software company (and many more years representing it as outside counsel); - 3 years as an associate in the Wall Street law firm of Lord, Day & Lord (then the oldest law firm in New York City practicing under the same name); and - speaking at conferences on legal issues including at the annual Game Developers Conference and Miller Freeman's Digital Video Conference. I am comfortable working in areas where the technology -- and the related law -- are new. My recent work includes working as a contract attorney (extended on a month-by-month basis) as American counsel for a publicly traded Swiss industrial corporation with responsibility for drafting form contracts for its planned "industrial internet of things" digital services. Accordingly I am comfortable working in a corporate environment using modern collaboration tools. Charles Kramer (917) 512-2721 (voice, voicemail, text)

Joseph M. on ContractsCounsel
View Joseph
Member Since:
January 23, 2023

Joseph M.

Free Consultation
Boston, MA
2 Yrs Experience
Licensed in MA
Massachusetts School of Law

Joe provides premium legal services to both individuals and businesses throughout the Commonwealth. Experience litigating civil and criminal matters, as well as drafting/negotiation transactional issues involving contracts, real estate, business formation, estate planning and more. Prior to entering private law practice, Joe worked for two decades in financial industry including regulatory and compliance for both national and regional banks and investment firms.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

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

Request a call