LLC Start Up Costs and Fees
LLC start up costs vary. In my 30 years as a lawyer, I’ve seen people pay LLC (Limited Liability Company) start up costs ranging from $50 to $25,000. The average LLC fee is about $750 today. That’s what the run of the mill boiler plate lawyer will charge.
You can find some deals on line which lower the LLC start up costs, but I’m not sure that’s the best deal in the final analysis. What you may not realize is the total LLC start up costs consist partly a “service fee” and partly state “franchise fees” or “filing fees.”
The minimum LLC fees are dictated by the state where you are forming the LLC. In some states the LLC fees are a little as $12 and others, like California and New Jersey, the LLC fee runs nearly $1,000. Those costs are not just LLC start up costs, they are annual LLC start up costs, and are there whether you do it yourself, use an internet site, or get taken advantage of by your local attorney. Here is a link that to a site that will take you to your state website, so you can explore the fees.
New York is very expensive to set up an LLC in, because LLC start up costs include advertising in each of the big three newspapers. That will add several thousand dollars to your LLC start up costs in New York. Welcome to the Big Apple – they’ll take a bite out of your apple for you.
When the internet site or attorney quotes you $300 for your LLC start up costs, often that does not include the LLC filing fees with the state. The lawyer’s quote may or may not include the LLC filing fee. You’ll have to ask what is included.
I’m down on the internet sites, because they just get you halfway there. Actually, most lawyers only get you halfway there. There’s no asset protection discussion, no tax discussion, no disaster planning, no money management discussion, no formalities training, no, no, no.
You’re going to use the LLC to make your money, protect your assets, and pass on your business to your family. You’ll work your whole life to build your business. Don’t you think that you should worry more about your “business vehicle” than answer three questions on the internet site or at the lawyer’s office and get a stamped piece of paper?
The most expensive LLC start up cost is the cost of ignorance. The LLC Wizard has 6 hours of audio training on using your LLC so you get the maximum tax benefits and asset protection out of your LLC. The LLC Wizard is the LLC financial bible. Do you really care what your LLC start up costs are, if you will get hundreds of thousands more dollars out of your business over the years and save all your assets when disaster strikes?
