One of the most frequently asked questions we encounter is: "How much does it cost to set up an LLC?" This question is difficult to answer because there are so many factors involved. However, the majority of people are looking for an answer along the lines of, "it will cost X amount of dollars to do so." That is why we have set out to provide the best answer to the question, "Can I set up an LLC for free?"
The short answer is "yes." You can set up an LLC by yourself. The process is not difficult. Business owners, new entrepreneurs, and wannabe business owners frequently ask if they can set up an LLC for free. The answer is "yes." An LLC is a business entity that is formed with the state government. You can form an LLC at any time, for free. You can form an LLC without an attorney. You can form an LLC without any startup capital. You can form an LLC on your own.
There are many business structures to choose from, and the limited liability company (LLC) is one of the most common. We understand that setting up an LLC and getting your business up and running comes with many challenges. LLCs are flexible with tax structure, so you may elect to have yours taxed as a corporation instead.
• Fill out the Articles of Formation, which is your business's corporate charter.
• File Articles of Incorporation with local Secretary of State office.
• Gather necessary signatures.
• Pay filing fees.
Your operating agreement may stipulate how the LLC's assets will be distributed among them in the event of dissolution. To fully terminate the LLC, all debts, taxes and other liabilities must be paid or settled, and a Certificate of Termination must be filed for an additional fee. Because default laws are broad and not tailored to your specific business, they are often not in the best interest of your LLC, so it is best to avoid them by being as complete as possible in your agreement.
The exact amount required to start a business depends largely on the type and size of the business. Creating an LLC is one of the best ways to start your entrepreneurial journey and get the right legal structure for your new business.
In addition, an LLC formation service can take care of maintenance items, such as annual reports, so you can remove them from your to-do list. However, some LLCs can reduce their federal tax liability by electing S corporation (S corp) status. The Certificate of Organization may have made your business legitimate, but your LLC may still need to obtain a license before doing business. If the time comes to close your business and cease all operations, then you will want to properly dissolve your LLC to limit your liability for government claims and fees.