business formation

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 $625 plus the fees below… if you need an initial report or something similar (California, Nevada, etc.) then our fee is $125 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 $925 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
Alabama 195 165 150 100
Alaska 250 250 350 100, due every 2 years
Arizona 85 95 185 NA Publication fee of 299 for either entity
Arkansas 50 50 270 150
California 75 145 70 20, plus franchise tax
Colorado 50 50 100 10
Connecticut 175 455 120 20
Delaware 145 145 250 NA, but annual tax
District of Columbia 220 220 220 300, due every 2 years
Florida 155 78.75 160 138.75
Georgia 100 100 225 50 C Corp publication fee of 199
Hawaii 50 50 50 15
Idaho 100 101 120 0, still need to file report
Illinois 260 285 150 75
Indiana 100 100 125 20, due every 2 years
Iowa 50 50 100 45, due every 2 years
Kansas 160 90 165 50
Kentucky 55 55 90 15
Louisiana 105 100 150 35 Notary fee of 19
Maine 175 145 250 85
Maryland 220 220 100 300
Massachusetts 520 295 500 500
Michigan 50 60 50 25
Minnesota 160 160 205 0, still need to file report
Mississippi 50 50 250 0, still need to file report
Missouri 50 58 105 NA
Montana 70 70 70 20
Nebraska 125 65 120 10, due every 2 years Publication of 199 for either entity
Nevada 425 725 425 350
New Hampshire 100 100 100 100
New Jersey 128 128 125 75
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
North Carolina 125 125 250 202
North Dakota 135 100 135 50
Ohio 125 125 99 NA
Oklahoma 104 78 300 25
Oregon 100 100 275 100
Pennsylvania 125 125 250 70, due every 10 years C Corp publication fee of 399
Rhode Island 156 230 150 50
South Carolina 146 135 110 NA, unless taxed as an S Corp
South Dakota 150 150 750 50
Tennessee 325 125 300 300
Texas 310 310 750 0, still need to file report, possible franchise tax
Utah 72 72 70 20
Vermont 125 125 125 35
Virginia 104 79 100 50
Washington 200 200 180 60
West Virginia 132 82 150 25
Wisconsin 130 100 100 25
Wyoming 103 103 100 52 minimum

Additional Resources

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 Entity Types
Multiple Entity Arrangements
Operating Agreements

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!

     

                 

    We typically schedule a 20-minute complimentary quick chat with one of our Partners or senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax prep + planning?

     

    Should we need to schedule an additional consultation, our fee is $250 for 40 minutes. Fun! If we decide to press forward with a Business Advisory or Tax Patrol Services engagement, we will credit the consultation fee towards those services.

     

    Appointments are typically held through Microsoft Teams and are scheduled on weekdays during the work day. Yes, we can easily accommodate nights and weekends, but those are reluctantly agreed to after some eye-rolling and complaining. Additionally, our schedules are more compressed during tax season.

     

    Shockingly we will return all appointment requests via email with 24-36 hours weather-permitting, or perhaps a phone call (if the moment strikes us). No black holes here! In a hurry, please call us at 719-387-9800 or use our chat service in the lower right corner.