So you’re ready to start your business. Congratulations! You have a lot of options.
According to Forbes, the United States is the number one startup country in the world, followed by the United Kingdom and then China. In fact, between 2013 and 2016, the number of active startup companies in the UK grew from approximately 100,000 to more than 130,000.
But what does that mean for you? When you're freelancing or starting a business, it's easy to be intimidated by the technicality of it all. It's easy to talk to your peers and ask, "How much does it cost to start a business?
How much does it cost to register an LLC?"
One of the most popular options is to register an LLC (Limited Liability Company) for your business.
An LLC is a business structure that provides liability protection to its owners. This protection limits your personal liability as a business owner to your investment in the business.
So how much does it cost to register an LLC? One of the best benefits of an LLC is that in most states they are easy and inexpensive to register. You simply fill out standard or online forms.
The filing fees to form an LLC or corporation can vary from state to state. Use this filing fee tool to easily research and compare state fees before you start your business. Be sure to consider all possible costs associated with forming an LLC. To help you, we have compiled the most common Pennsylvania formation fees here.
It is always a good idea to incorporate your LLC in the state in which you plan to conduct most of your business, or you may end up with additional fees and a considerable amount of additional paperwork.
Federal Employer Identification Number - Although there is no cost to apply for an EIN, most LLCs will need to apply for one for tax purposes and to open a bank account.
Once the LLC is incorporated, most states also have a fee for filing the Annual Report (sometimes called the Periodic Report or the Information Return). In exchange for paying the fee, you get assurance that important documents sent to your LLC will be received and forwarded.
In addition to the various LLC filing fees, you may incur service fees if you use a business lawyer or formation company to set up your LLC.
Having an LLC provides security and adequate payments to each partner or member of the LLC. In an LLC, the business entity status separates it from the owners in case of personal liability.
In addition to state LLC processing fees, there are several other costs and filing requirements for setting up an LLC that you may need to consider.
Depending on your state, you may have to pay special annual minimum LLC taxes, sometimes referred to as franchise taxes or fees.
Purchasing a customized operating agreement from an online formation service is an easy way to ensure that you will have a complete and legally binding document governing your new LLC.