Business Formation Fees
Posted Wednesday, July 8, 2020
Here are the formation fees by each state for domestic limited liability companies (LLCs) and corporations, including foreign entity registrations. Domestic and foreign does not mean U.S. and international… it is stated based. Wal-Mart is a foreign entity in Colorado since they are domiciled in Arkansas. Typically you will register your business where your butt resides or where you do substantially all the work. State nexus issues and state income tax sourcing is complicated, and we can certainly help.
For now, here are the formation fees to get your business registered with the Secretary of State. Our fee is $425 plus the fees below… if you need an initial report or something similar (California, Nevada, etc.) then our fee is $100 plus the fee for filing the report. If you have foreign owners (ie, not U.S. citizens or non-resident aliens), then our fee is $750 plus the fees below.
We have also included an Annual Fee amount below. Be careful with this! There are multiple sources of annual fees; first is the Secretary of State and second could be a Department of Revenue or some other taxing agency. For example, California’s annual report with the Secretary of State is $20 but California’s Franchise Tax Board also charges a minimum franchise tax of $800. Therefore, your minimum cash out of pocket would be $820 but being paid to different recipients. Other states such as Delaware, New Mexico, New York and Texas are similar.
State Filing Fees
|State||Domestic LLC||Domestic Corp||Foreign Entity||Annual Fee||Extra Crud|
|Alaska||250||250||350||100, due every 2 years|
|Arizona||85||95||185||NA||Publication fee of 299 for either entity|
|California||75||145||70||20, plus franchise tax|
|Delaware||145||145||250||NA, but annual tax|
|District of Columbia||220||220||220||300, due every 2 years|
|Georgia||100||100||225||50||C Corp publication fee of 199|
|Idaho||100||101||120||0, still need to file report|
|Indiana||100||100||125||20, due every 2 years|
|Iowa||50||50||100||45, due every 2 years|
|Louisiana||105||100||150||35||Notary fee of 19|
|Minnesota||160||160||205||0, still need to file report|
|Mississippi||50||50||250||0, still need to file report|
|Nebraska||125||65||120||10, due every 2 years||Publication of 199 for either entity|
|New Mexico||50||100||100||NA, but franchise tax|
|New York||210||145||250||9, due every 2 years||LLC publication fee varies by county|
|Pennsylvania||125||125||250||70, due every 10 years||C Corp publication fee of 399|
|South Carolina||146||135||110||NA, unless taxed as an S Corp|
|Texas||310||310||750||0, still need to file report, possible franchise tax|
Business formations can appear straightforward, but there can be some pitfalls. Which entity should you select? Does it matter if you are in California when choosing between an LLC or Professional Corporation (spoiler, it does)? The first button below will go through various business entity types and review the benefits of each.
Next is a multiple entity arrangements. Are you going into business with someone else? How do you want to share profits? Or… do you own equipment or real estate that you want to lease back to your business?
The last button is about operating agreements which are not as critical for a single-member limited liability company (SMLLC)… but if you have partners beyond a spouse, then there are some serious things to consider. Check out these additional resources.
Business Formation Consultation
Do you still have business formation questions? Not sure which state you have nexus in? Still confused on S corporations, and how that factors into forming an LLC or corporation? Let’s chat!