When determining the cost to form an LLC, it is important to understand that there are two distinct financial consequences of initiating the process. First, there are the costs to form an LLC associated with the filing itself. Any time a business structure becomes legally recognized, the government charges fees associated with incorporation. The second is the attorneys’ fees. It is important to seek out the assistance of an experienced attorney in order to ensure that the formation documentation and fees are properly filed. Failure to take this step could leave your company’s incorporation incomplete or vulnerable to liability.
Hiring an Attorney
The costs associated with hiring an attorney for the incorporation process will vary depending on a few factors.
- Location – Attorneys located in cities with a high cost of living range will likely charge more for their services than those located in lower cost of living cities.
- Rate Type – Some attorneys charge a flat rate for handling incorporation while others charge an hourly rate. It helps to ask any candidates what they charge and, if they charge by the hour, how many hours they believe it will take them to finish the job. At that point, it becomes easier to compare pricing.
- Experience – Not all attorneys handle this kind of business law on a regular basis. If you have any complex incorporation challenges to overcome, you may benefit from speaking with an attorney experienced in unique ways that will benefit your company. Such an attorney may charge more than an average business attorney or a general counselor.
It is possible to find an attorney that is both affordable and capable of handling your LLC’s incorporation. But it is important to seek counsel instead of attempting to handle the process yourself. Forming an LLC or a company is not a minor endeavor. It is critical that you ensure that all paperwork is filled out, supported and filed properly in order. Skipping even a single step could leave your company vulnerable to fines, penalties and liabilities.
The LLC Formation Process
The actual filing fees associated with forming an LLC vary by state. Once you have chosen that state in which you are going to incorporate, you can research the fees mandated by that state. For example, California charges two fees amounting to less than $100. However, the taxes associated with LLC filing are steep. In addition, states charge a compliance fee for LLCs every one or two years. Your attorney can advise you of your state’s specifics.
Legal Assistance Is Available
The team at LawTrades has aided more than 5,000 startups in matters ranging from formation and financing to compliance and intellectual property protection. If you are considering forming an LLC, please consider contacting us today. In addition to being experienced, our team is approachable and efficient. As an added incentive, our services are affordable. We are eager to help answer any questions you may have about the startup process and to aid you in forming an LLC or company.