How Much Does It Really Cost to Start an LLC?

Such expenses should be known in advance and can enable you to plan your budget and avoid unexpected expenses. This guide makes the most popular expenses of starting a LLC easier to understand, and you are aware of the exact expenses you should expect.

Common LLC Fees and Costs

Fee Type	Normal Fee Range
LLC Filing Fees	$35–$500
Name Reservation Fee	$10–$50
Operating Agreement	$0–$600
DBA (Doing Business As) Fees	$10–$100
Registered Agent Fees	$0–$300
Business License Fees	$50–$1,000+
Annual Report Fees	$10–$800

Name Reservation Fee

Business name is one of the initial processes in establishing an LLC. When you have a name that you like, you can reserve the name with your state until you are willing to actually form your LLC. This fee is often the initial one that new business owners have to meet.

You will have to ensure that the name is not in use before you can reserve a name and that it is not against state regulations. Here's how to do that:

1. Name Availability at Your State

Go to your state business registration site - most of them are sites with the Secretary of State - and see if your name of choice is available and what variations of it are available. This will make sure that your name is not used or too close to another registered business, which would make your name be rejected.

2. State of Review LLC Naming Rules

In the majority of states, your business name must contain either Limited Liability Company, LLC or L.L.C., not to mention that names which lead to the understanding that the company belongs or is associated to a government are usually not allowed. Different states have different rules; that is why it is necessary to examine the rules in your state.

3. Trademarks- Search

The name might be registered in the state level but can be already a trademark in the country. The U.S. Patent and Trademark Office database is one of the resources where you can make sure that the name is not safeguarded on the federal level.

4. Domain Name Availability Check

In the case you intend to establish an online presence, ensure that an equivalent domain name is free. This can be done with websites such as GoDaddy. The addition of a domain to a ".com" or the open-organization domain tends to give your business some credibility.

5. Perform a Google Search

Lastly, general internet search to find out whether the name is in use elsewhere in the U.S. or in other countries. This is necessary particularly when your business would be online based or when it would be selling on a national scale.

After verifying that the name of your choice is not used by anyone or it is not offensive to anyone, you can fill out a name reservation form with your state. The reservation fee is normally small but again depending on where you are forming your LLC.

Fee to Incorporate LLC in the State

You will have to submit a document, commonly referred to as the Articles of Organization, to your state in order to form your LLC officially. This is achieved via the proper state agency which is most likely the office of the Secretary of State.

In general, the information to be given when filing includes:

• Your LLC's legal name
• Physical or mailing address of the business
• Name and address of registered agent
• Contact and name of the organizer

Since different states charge different sums of money as filing fees and may charge extra amounts, it is essential to become familiar with the requirements of your particular state. Checking the fee schedule of your state will give you an idea of the total amount that you will pay before applying.

Business Licenses and Permits Costs

You can also be obligated to acquire some licenses and permits to operate your business legally in addition to establishing your LLC. Such requirements may be federal, state, and local, with fees required on each.

In most cases, federal licenses and permits are industry specific at the federal level. As an example, the health, safety, or transportation related businesses may be subject to the federal approvals, such as the permits of the agencies like Occupational Safety and Health Administration (OSHA).

At the state level, a great number of businesses are required to acquire a general business license. At the time of selling taxable goods or services, you will probably need a sales tax license, also commonly referred to as a seller permit.

Small Business Administration offers you a good guideline on what licenses and permits can be applicable to your business.

Examples of common licenses and permits are:

• Professional licenses in building, plumbing, electrical, childcare, food service, sale of alcohol, architecture, and finance
• Building and zoning permits
• DBA also allows you to operate under a different name other than the legal name of your LLC
• Federal, state and local licenses and permits in health
• Fire safety permits
• Sign permits

It is important to make sure that you have the proper licenses and permits. Their absence may lead to the huge fines, penalties, or even the closure of a business. Look constantly with state and local authorities to establish requirements and cost involved.

In case the process is overwhelming then a business attorney can be consulted to make sure that there is complete compliance. Or alternatively you can hire a professional service like MyCorporation to conduct a research about licensing requirements and make the required paper work.

Doing Business As (DBA) Name Costs

When you want to use a name that is not the formal legal name of your LLC to conduct your business, you will be required to file a name known as Doing Business As (DBA) name, also known as fictitious business name.

The registration of DBA is done by a state agency or a local agency (depending on where you are). Different fees apply according to the state or municipality and one should enquire with the relevant office.

Annual Report Fees

The majority of the states compel LLCs to submit a periodic statement or annual report. This filing confirms the existing information of your business including address, ownership and the registered agent and validates that your company is still in operation.

Annual reports are normally submitted on the internet, the related charges are normally small. The prices, however, depend on each state and not filing in time will lead to pay the late or administrative dissolution of your LLC.