What are the Costs to Form an LLC?
An LLC, or limited liability company, is a legal business entity that is a cross between a partnership and a corporation. To form an LLC, you need to file your statement of information with your Secretary of State and have received articles or organization.
Here we look at the cost to form an LLC and the associated costs of additional services.
Why Form an LLC in California?
An LLC offers the business owner limited liability, this means the only assets you are liable for are those you have invested in the business. Your personal assets are not liable. This type of legal business entity has a particular organizational structure and must be registered with the US Secretary of State.
If your business is located in California, you will want to form a domestic California LLC. California is a popular state to form an LLC, with the second most formations in the 2023 US Census.
Costs to Form an LLC Business
There are various costs to form an LLC, depending on what service you decide to use. The options include an online formation company, an attorney, a DIY business formation, or the Legal Stepz course.
The cost to establish an LLC can be anything from $35 to $500 to electronically file your Statement of Information, depending on your state. In California, it costs $70 to file a statement of information to form an LLC. You may have to pay an annual registration fee which also varies by state.
Reserve a Business Name
There is a $10 filing fee for a name reservation form. You do not need to use the reservation form if you want to go ahead and form your business, but you might want to use this option if you are not yet ready.
You may require additional services and costs to establish an LLC. So make sure you know what to expect from the service provider you choose to use. If you decide to have an attorney form your business, which can be more costly than other options; you need to check which additional costs are included. The Legal Stepz course guides you through your formation yourself so you can pay for the services you need as you go.
There may be some additional costs to form an LLC. You might want to trademark the name you want to use for your product or company with the United States Patent and Trademark Office (USPTO). You might also need to register your name as a fictitious name. You may need to pay for any licenses depending on the type of business you wish to set up.
What is the Cheapest Way to Form an LLC?
The cheapest way to form an LLC is to do it yourself. This way you only have to pay required fees such as your filing fees. The problem with a DIY formation is depending on the business entity you wish to form, there may be operational aspects that are required legally for your business structure. This includes minutes and bylaws, for example.
There are cheaper options when looking at the costs to form an LLC, like a business formation company but they may charge for additional services. With the Legal Stepz course, you are going through the process with a video and accompanying workbook. You then pay for services as you go.
How Much Are Filing Fees?
It costs anything between $35 to $500 depending on the state, to electronically file your statement of information at the Secretary of State website. In California, it costs $70 to file a statement of information.
What Information Do I Need?
There is a particular way to set up and organize each business entity. You will also need to select a registered agent among other aspects.
What Is the Cost to Form an LLC?
There is a State fee to file your statement of information, and depending on your state, an annual registration. You may wish to reserve your business name or register a patent and require a license depending on the type of business you plan to set up.
Final Word: Costs to Form an LLC in California
The cost to form a business varies depending on the services you need. To form your LLC you will need to file your Statement of Information at your Secretary of State website and receive your Articles of Organization among other important steps.
You may want to consider a Legal Step course to make sure you complete all the necessary steps to correctly form your chosen legal business entity, like an LLC. You can work through the workbook and accompanying video to form your LLC in just a short time!