How much it costs to incorporate your business is relatively minimal in comparison to how much money you can save both yourself and your company. Even though each state will have its own fee structure for incorporation, all states remain comparatively the same.
Incorporating a business can cost anywhere from $99 to over a couple thousand dollars. Two factors that will play a role in determining the cost are using an online vendor, or choosing to work with your attorney. Deciding to work with an attorney will result in additional fees, but is well worth the assurance that each step and all paperwork have been done correctly. If you would rather work with a vendor service to form your legal entity, do research and shop around to make sure you can receive incorporation fees you will be content with.
Hiring an attorney that specializes in start up businesses to help you incorporate your company can cost anywhere from $500 to $700 as a flat rate, and up to $5,000 in accumulated attorney fees. Your attorney will be able to help you fill out the necessary documents for incorporating your business, explain the incorporation process in detail, and review your paperwork before submitting. If your firm has more than one partner or shareholder, there will be a higher fee. Attorney rates will vary and are based on each law firm, and although they can be helpful, attorneys are not required for incorporation.
Generally, corporations cost less in legal and accounting fees to initially organize, but could cost more to maintain over time. Upfront analysis and preparation can be more expensive because LLCs set up internal rules and regulations. Maintenance fees, however, can be less expensive over time, as they do not require separate taxable entity tax returns. Other additional costs to consider include when corporations introduce multiple classes of stock or voting restrictions, or when new members are added to an LLC.
It is required that you file the Articles of Incorporation with the Secretary of State, which also has a fee associated with it. Registration fees range from $25 to $1,000, depending on which state the Articles of Incorporation are filed in. A business legal entity becomes officially incorporated once the required documents have been successfully filed with the Secretary of State.
Required government filing fees are based on business type and the state the business is incorporating in, and can range from $50 to $200. Business licenses are required in some states, and can be purchased at a nominal fee. Depending on the state, annual report fees will range from $25 to $200. New corporations will have to pay a publication fee in Arizona, Georgia, Nebraska and Pennsylvania will require a new corporation to pay a publication fee. These fees can range anywhere from $150 to $300. The Secretary of State offices will also charge $100 to $250 in necessary fees.
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