ContractsCounsel Logo

Multi-Member LLC Cost

Updated: August 11, 2023
Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 10,596 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Blog Multi-Member LLC Cost

Jump to Section

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

Daehoon P.

194 projects on CC
CC verified
View Profile

Zachary J.

349 projects on CC
CC verified
View Profile

Sara S.

120 projects on CC
CC verified
View Profile

Bryan B.

259 projects on CC
CC verified
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.

Meet some of our Lawyers

Jason H. on ContractsCounsel
View Jason
4.9 (15)
Member Since:
March 5, 2023

Jason H.

Managing Attorney
Free Consultation
Dallas, Texas
23 Yrs Experience
Licensed in TX, VA
Regent University, School of Law

Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.

Michael M. on ContractsCounsel
View Michael
4.9 (291)
Member Since:
September 10, 2022

Michael M.

Principal
Free Consultation
Los Angeles, CA
37 Yrs Experience
Licensed in CA
NYU

www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and top reviews.

Samuel R. on ContractsCounsel
View Samuel
5.0 (41)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
5 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the 2024 Super Lawyers Southwest Rising Stars list. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Jordan M. on ContractsCounsel
View Jordan
5.0 (2)
Member Since:
October 14, 2021

Jordan M.

Partner
Free Consultation
Houston, TX
5 Yrs Experience
Licensed in TX
University of Houston Law Center

I am a software developer turned lawyer with 7+ years of experience drafting, reviewing, and negotiating SaaS agreements, as well as other technology agreements. I am a partner at Freeman Lovell PLLC, where I lead commercial contracts practice group. I work with startups, growing companies, and the Fortune 500 to make sure your legal go-to-market strategy works for you.

Elbert T. on ContractsCounsel
View Elbert
4.8 (7)
Member Since:
March 31, 2022

Elbert T.

Attorney
Free Consultation
Oklahoma City
3 Yrs Experience
Licensed in OK
Oklahoma City University School of Law

Elbert Thomas is the founder of the Thomas Law Group, LLC. Elbert is proficient in contract creation, drafting, reviewing, and negotiating various business contracts and demand letters in industries such as construction, personal, professional services, non-profits, and real estate. Elbert typically represents small and large companies in drafting and negotiating countless agreements such as purchase sale agreements, interconnection agreements, lease agreements, demand letters, cease & desist letters, transfer of deeds in real property, and merger/acquisition agreements. In addition, Elbert is also experienced in start-ups, small business formation, drafting operating agreements, and estate planning.

Jonathan K. on ContractsCounsel
View Jonathan
Member Since:
November 12, 2021

Jonathan K.

Principal
Free Consultation
New York, Europe (Germany, UK)
15 Yrs Experience
Licensed in NY
Georgetown University Law Center

Pico & Kooker provides hands on legal advice in structuring, drafting, negotiating, interpreting, managing and enforcing complex high value commercial transactions. Adept at navigating complex environments, Jonathan has extensive expertise advising clients on a wide range of long- and medium-term cross border and financial engagements, including public tender participation, PPPs, export sales agreements as well as policy and regulatory formulation. Jonathan and his co-founder, Eva Pico have represented and acted on behalf of lenders, global corporations and other market participants across a range of industries including financial services, infrastructure and transportation. As outside counsel, Pico & Kooker, has developed a strong rapport and working relationship with their clients and appropriately work with their in-house teams to increase consistency, processes and procedures. The company employs a unique approach as practical, business minded outside legal counsel who believe in proactively partnering with their clients to achieve desired results while managing and engaging key stakeholders. They listen to their clients to develop customized solutions that best meet their needs while aligning with their objectives, vision and values. Some representative transactions include advising the World Bank on project finance and portfolio options to address the costs and risks associated with integrating renewable power sources. Also advising them as legal counsel, Jonathan developed policies, regulation and models for emerging market governments entering into public-private partnerships. In addition to his work with the World Bank, Jonathan has worked with some of the world’s largest consulting firms, financial institutions and governmental organizations, including the United Nations, the governments of the US, UK and select African countries. Through out his career, he has worked with large, multinational corporations both by consulting in-house and acting as outside counsel on large cross-border transactions. He graduated from Georgetown University’s law school and was admitted practice as a lawyer in New York, England and Wales and, as a foreign lawyer, in Germany. He has written several articles for trade journals and has been cited by several business publications in worldwide. Jonathan is a native English speaker and has high proficiency in German and a functional understanding of Spanish.

Pelin U. on ContractsCounsel
View Pelin
Member Since:
October 18, 2021

Pelin U.

Founding Attorney
Free Consultation
Leander, TX
3 Yrs Experience
Licensed in TX
Rutgers Law School - J.D. / Law

I am a solo practitioner and the founding attorney at Uzay Law, PLLC, where I provide legal services in family-based immigration, citizenship, and naturalization. In the past, I also advised clients on employment-based immigration, contract, and business matters. I am licensed to practice law in Texas. Before practicing law, I worked as a producer and film consultant in New York for almost two decades. I am fluent in English and Turkish.

Find the best lawyer for your project

Browse Lawyers Now

Need help with a Multi-Member LLC?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers
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

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

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