[2 Minute Read]
Incorporating your business is an important step. It’s kind of like the transition from late teens to adulthood; things are getting serious.
As you probably already suspect, the price for incorporation varies from state to state. There are also service providers who incorporate on your behalf to save you the hassle, their prices also vary.
Read through this short article to get all your questions answered and your best options explained.
What Is the Cost of Incorporation for an LLC?
The cost of incorporation in the USA, ranges from $40 to a whopping $500. Big range, huh?
The good news is that the 50 states average at around $100. So, there’s plenty of choice, and most of it is affordable.
Now, you may not have much choice if your business is physically tied to a state. What we’re talking about here is termed as ‘nexus.’ When you have nexus in a state (this could be an office, or a warehouse) you have to incorporate in that state. It’s the law.
If you don’t have nexus, then good news; you can choose, because you don’t have to incorporate in the state you live in! You can also choose the state of your preference if you’re a nomad, even if you’re not a resident or citizen of the USA.
Different States, Different Rules!
This is a long-ish topic, but each state has its own rules and regulations. This is great, it creates variety. So, some states offer great benefits for businesses, while others don’t.
If you’re in the position to choose which state you’ll incorporate in, we recommend you head over here. It’s an article which explains which states are the absolute best for incorporation.
We’re talking about more than just incorporation fees. Some states are very business friendly because of their tax rates. So make sure to check out the post.
Which State is the Cheapest to Incorporate In?
The cheapest state to incorporate in is Kentucky coming in at $40, but is the saving worth it?
Let’s put it this way; there are states that offer many more benefits for businesses than Kentucky.
‘Why even mention Kentucky then?’ you might ask…
To illustrate that choosing the state to incorporate in, by the incorporation fee, is like buying the cheapest home on the market without considering anything else at all. The chances of you loving that home are pretty small.
What you want to do is choose a state that offers your business the best opportunities and benefits.
Again, I’ll direct you to the article that clearly explains which states offer the best benefits. Click here.
What Fees Do I Have to Pay When Incorporating an LLC?
The state filing fee (the incorporation fee) is the main one, but there are some additional fees you might have to pay, depending on the state.
Here’s a list of other fees that you might have to pay when incorporating your LLC.
Business License and Permit
There are federal, state, and local licenses and permits. You can usually get them online. The amount you have to pay will depend on what your business does, where you’re filing, and so on. You can expect to pay anywhere from $50 to $500.
Name Reservation Fee
This is optional in all states but Alabama. The fee is usually between $10 and $30.
Some states (Arizona, New York, and Nebraska) require that you publish a statement of formation within 120 days of incorporating your LLC.
New York asks that you publish it in two newspapers, because one isn’t enough.
Arizona and Nebraska ask that you publish in one newspaper, but for 3 consecutive runs.
The cost of publication can vary from $50 to anything in the thousands of dollars.
A filing fee is a one time fee, but there are also ongoing fees associated with the maintenance of your LLC. Again, these can range from $40 to $500+ annually and are paid to the state.
Additionally, business licenses and permits usually require annual renewal.
Company Formation Services
If you want to get everything right, the state of formation, the paperwork, and all the details, then your best bet is to go with a professional service provider.
Beware though, some services charge a fortune and make you go through a really complicated process.
We specialize in modern and easy company formation. You can fill out a straightforward form, and we’ll take care of the rest for you.
We offer the best rates and packages, giving you flexibility, choice, and value.
Click here to see our pricing.