When people are interested in starting a company, they look at the various options available to them for starting a business, such as whether they want a corporation, or a limited liability company (LLC). This article focuses on the establishment of the limited liability company and provides information to those who are planning to start one, including the costs associated with an LLC. The LLC combines the best of the sole proprietorship/partnership and the corporation, making it a desirable choice for business owners. The first thing the business owner will be interested in is the actual cost of establishing an LLC because that will determine whether the business owner goes this route or looks for other options.
What Are the Costs Associated with an LLC?
To begin with, the state fees for limited liability companies will range from $50 to $500, but the average filing fee in the United States is around $127. Parties starting an LLC will need to check with their respective state to find out exactly what the area’s fees will come to. An Operating Agreement will be a document that the LLC will need to have, and depending on how the LLC was set up, it can be included in the cost, or the agreement can be a separate cost. The Operating Agreement can cost as much as $500, or it could be $50 to $100 if an online incorporation website is used. Another cost might be if the LLC needs to hire an outside Registered Agent.
Other Possible Fees for an LLC
A person who is a member of the LLC can be the registered agent for the LLC if he or she has a physical address in the same state the LLC is established. This will save some money on establishing the limited liability company, and many of the other fees that are normally associated with an LLC can be waived or dismissed altogether if the LLC members go online and find services for free (however, a few states could give you anonymity if you use a registered agent service). A Federal Tax ID number does not have to be paid for, but it is important for the LLC members to wait until the LLC has been approved before filing for this number. Failure to wait will end up in the tax id number being assigned to a person personally, but this can be canceled if this mistake was made.
Getting Help with Establishing an LLC
Online business formation services, such as QuickStart Docs, are available to assist people with establishing their businesses with minimal costs, leaving them to focus on the business itself. The time taken to establish an LLC, for example, can be done as quickly as 24 hours, and with less expense than it would be if a person used an attorney or law firm to do the same thing. The goal of online business formation services is to make the service user-friendly and to help users get started on their businesses without paying excessive fees. Visit the websites of services like QuickStart Docs to get the best deals for establishing corporations and LLCs.