Average Cost of Setting Up an LLC
Starting an LLC is often a viable option for those running a business out of their home. A feat like this naturally necessitates time, money and paperwork. There are several aspects of this task that business owners considering an LLC should know about before making their final decision.
Standard Start-up Costs
An LLC requires filing with a particular state, and there is a fee attached to this. State filing fees average about $127, but they range from $50 to $500, depending on where the LLC is filed. Often professional assistance from a lawyer is needed to ensure everything is in order, and this can cost anywhere from $1,000 to $1500.
Another requirement is attaining an Employee Identification Number, or tax ID number. There is a fee connected with this service, as well. For example, if filing for an ID number through a service like Gov Doc Filing, it will cost right about $175.
Advantages of an LLC
There are numerous benefits of launching an LLC:
- Tax advantages over a sole proprietorship (see LLC tax form)
- Limitations on personal liability, as business assets are separate from personal accounts
- Flexibility in regards to management and ownership
Tips on Where to Set Up an LLC
If the business owner lives near a state border, it might be that his or her street address is on one side, but the business happens in the next state over. The recommendation is that business owners set up an LLC in the state where they conduct business. However, it is important to keep in mind that if the street address is not in that state, then one might need a friend or family member whose address is in the same state as the LLC to serve as the Commercial Registered Agent. Otherwise, it might become necessary to hire an agent, which is an extra fee ranging from around $100 to $300 per year.
Reliable LLC Assistance
For a dependable document filing service, contact Gov Doc Filing today. Their trusted agents should be able to help with all documentation and LLC filing needs.