The cost of LLC Filing varies from state to state and can range from $40 to $800, according to where you are filing. Below we will look at the process of filing as an LLC and answer the question - How much does filing an LLC cost?
What is an LLC?
An LLC (a Limited Liability Company) is a business entity that will protect business owners from being liable for company debts. These limited liability organizations combine some of the characteristics of sole proprietorship and corporations.
Depending on where you filed your LLC, the IRS will treat your company as a corporation, partnership, or sole ownership for tax purposes.
What is an LLC Filing?
To start to conduct business in your state, you will need to file your company and notify the IRS that you have formed your LLC. This process will involve paying LLC filing fees for your application to be processed.
What Are the Different LLC Costs When Registering Your LLC?
There will be two LLC costs when you first register your organization. These are your LLC Filing Fee and your LLC Annual or Biannual Fee.
LLC Filing Fee
This is a one-off payment to the state, which you will make when you have formed your LLC. However, you will need to pay this fee in full as there is currently no option to pay this sum monthly.
Annual or Biannual LLC Cost
You will also pay the Cost of LLC Annual or Biannual fees to keep your file up-to-date and compliant. You will pay late fees if you are late in paying this LLC Cost. If you neglect to pay the fees, the state will shut down your official LLC status.
You Need to File Your LLC in The State in Which Your Business Operates
When you look at our rundown of "How Much Does an LLC Cost?", you may consider filing your business in a cheaper state to cut costs. But you should be aware that this may mean you are then running your business illegally and may find that you will have two different LLC costs – a Domestic LLC and a Foreign LLC Cost!
How Much Does an LLC Cost in My State?
So now that we are familiar with the basics of the cost of LLCs, let's look at the various LLC Costs state by state. As we saw above, the fee varies according to where you are and what your states require.
Takeaway: How Much Does an LLC Cost? A Breakdown For Each State.
The cost of LLC filings will vary depending on the state. The cost of starting an LLC and initial filing will usually be the larger cost, and you will pay an annual fee. However, as you can see above, some states will waive the annual fee altogether, only requiring you to file each year to keep your status up-to-date.
Remember, you must make sure that you file your LLC in the state where you do business and do not try to evade the cost of LLC filings in your state if it is expensive. You could find yourself liable to fines and having to pay not one but two LLC fees, increasing the cost of LLC filing even more.