Here is a breakdown of the costs for setting up an LLC:
1.You do-it-yourself (DIY), hire a lawyer, use an online incorporation website
If you hire a lawyer, you will pay between $1,000 and $1,500.
If you use an online incorporation website, you will pay between $99 and $900 (note: if you pay just $99, you will need to pay extra for your Operating Agreement and Federal Tax ID Number i.e. EIN).
Regardless of which method you choose to form an LLC, you will quite have to pay state filing fees.
2. Hire a Registered Agent
A Registered Agent is a person or company who agrees to obtain Service of Process on behalf of your LLC. Service of Process is the delivery of any legal documents pertaining to a lawsuit.
It doesn’t matter if youdo-it-yourself (DIY), hire a lawyer, use an online incorporation website. You have the same choices as mentioned above.
3. Pay for an Operating Agreement or getting one for free
Depending on how you design your LLC, your Operating Agreement will either cost money or be included in your package.
If you do it yourself, you will most likely need to purchase an Operating Agreement online. Fees range $50 to $200.You may also be able to get one freefrom online.
If you hire a lawyer, this will most likely be part of the package deal, unless your business is very complicated or requires special agreements among the LLC members. Fees range $0 – $500.
If you use an online incorporation website, it’ll either be included (if you purchase a mid-level or high-level package), or you will need to pay extra. Fees range $50 to $100.
4. Federal Tax ID Number (EIN)
You will need to get a Federal Tax ID Number (EIN) in order to open your business bank accounts. Your EIN will also be used for filing taxes, obtaining finances, and obtaining credit cards to name a few. The IRS provided a free service for obtaining a Federal Tax ID Number.
If you do it yourself, your EIN will be free from the IRS.
If you hire a lawyer, this should be covered in their fees. Some will charge extra, through fees could be $50 to $100 depending on their hourly rate.
5. Annual LLC Fees
Most states have an annual LLC fee as a requirement in order to keep your LLC in a good position. If you do not pay your annual LLC fee on time, your state may vanish and shut down your LLC.
Annual fees range between $0 to $800, with the average fees coming out to $101.