2024 LLC Costs by State
Filing Fees and Annual Compliance Expenses
Estimate the state fees for forming an LLC, and begin your journey with us today.
Each state and federal district has different required fees for the formation and creation of an LLC. During your sign-up process, Kyuka Solutions collects this fee and passes it on to the state. Find your state below to learn about the local filing fees required in that state.
State Fees for Initial Filing
Each state mandates a filing fee to establish “statutory entities,” which include businesses formally registered with the state, such as Limited Liability Companies (LLCs), corporations, limited partnerships, and limited liability partnerships. In contrast, common law entities like sole proprietorships and general partnerships typically don’t require any state paperwork or fees before beginning operations.
The initial filing fees are paid by statutory entities to officially form the business with the state. These fees vary depending on the state and the business structure being registered.
Many states offer expedited filing options for an additional cost, allowing businesses to be registered more quickly. Some states even provide multiple expedited tiers, enabling faster processing for a higher fee.
To form your LLC or corporation in days rather than weeks, Kyuka Solutions offers a rush filing service. Our expedited filing option ensures your paperwork is processed as quickly as possible, getting your business up and running without delay.
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Name Reservation
If you’re not yet ready to file your formation paperwork but want to secure a business name, most states allow you to reserve a name for your statutory business. There is a fee for this service, and the name is reserved for a limited period of time. This ensures that no one else can claim your desired business name while you finalize your plans.
With Kyuka Solutions’ name reservation service, we can reserve your business name on your behalf, preventing others from using it while you prepare your paperwork. We will also conduct thorough research to ensure the name is available and complies with your state’s naming regulations.
Many states, such as Georgia and Maryland, require LLC names to include “limited liability company” or an approved abbreviation at the end.
DBA Name Fees
A “doing business as” (DBA) name allows you to operate your business under a name different from its legal name. Some states refer to DBAs as trade names, fictitious names, or assumed names.
Sole proprietorships and partnerships often use DBAs to appear more professional and allow them to accept payments under the business name rather than the owner’s name. Without a DBA, most states require sole proprietors to use their own name as the business name. For example, if your name is Sarah Jones, you would need to operate your business as “Sarah Jones.” However, if you want to name it “Eclipse Photography,” you will likely need to register a DBA.
LLCs and corporations can also benefit from a DBA when expanding their services beyond what their legal name describes. For instance, if your LLC is named “Paul’s Windows, LLC,” but you decide to offer roofing and siding services, you might want to register a DBA as “Paul’s Home Improvements, LLC.”
DBAs are only required if you are operating under a name other than your legal business name. However, not all states require a DBA, and some states don’t even have a DBA process. Check with Kyuka Solutions to see if we can help you register your DBA in your state.
Employer Identification Number
An Employer Identification Number (EIN) is essentially a Social Security number for your business. Also known as a Federal Employment Identification Number (FEIN), it is issued by the IRS. Most statutory entities, and many common law entities, especially those with employees, are required to have an EIN. You’ll also likely need an EIN to open a business bank account, hire employees, or obtain business licenses.
Before applying for an EIN, your business must be officially registered. While the IRS provides EINs for free online, Kyuka Solutions offers an EIN service to handle the process for you, saving you time and effort for a fee.
Operating Agreements, Partnership Agreements, and Corporate Bylaws
Every business can benefit from having a set of rules that govern its internal operations. Depending on your business structure, you might need to adopt an operating agreement, partnership agreement, or corporate bylaws. These documents are separate from your formation papers and typically do not need to be filed with the state.
While they may not always be legally required, operating agreements and bylaws play a crucial role in managing your business, defining responsibilities, preventing disputes, and ensuring proper distribution of profits. Kyuka Solutions can assist in creating these essential documents for your business.
LLC Operating Agreement
An operating agreement is a document that outlines the operations of the LLC and states the obligations of all members. Operating agreements typically include the following information:● Profit sharing,● Percentage of ownership,● Management structures,● Roles and responsibilities of members,● Ownership interest transfers, and ● Dissolution procedures.
Most states do not require that you create or file an operating agreement, but we highly recommend that you do. Having a single document that lays out the rules and expectations makes for a much smoother and successful business operation.
Partnership Agreement
Similar to an operating agreement, a partnership agreement is a legal document that outlines how a partnership operates and governs the relationship between the partners. Typically, partnership agreements include similar provisions as operating agreements. Depending on whether your business is a general partnership (GP), limited partnership (LP), or limited liability partnership (LLP), you may be required to file your partnership agreement with the state.
For a GP, there is no formal registration requirement, and thus, no need to file a partnership agreement. However, LPs and LLPs may be required by some states to register their business and establish a partnership agreement. Whether or not filing is required, it’s always a smart business move to formalize a partnership agreement. Kyuka Solutions can guide you through the process.
Corporate Bylaws
Corporate bylaws outline the structure and functioning of a corporation. Each state has its own regulations governing corporate bylaws, addressing matters such as organizational meetings and board of director requirements. Typically, these documents cover the following key provisions:
● Basic corporate information, such as business name, address, and purpose;● Board of directors appointment, removal, qualifications, and term limits;● Officer (president, vice president, secretary, and treasurer) duties, appointment, and removal;● Shareholder information, such as number of shares, voting rights, and transferability of shares;● Annual meeting information for shareholders and board of directors;● Fiduciary responsibilities of directors, including conflict of interest disclosures; and● How to amend the bylaws.
Corporate bylaws must be approved by the board of directors and should always be accessible for review by the state or the IRS.
While hiring a lawyer to draft your governing documents is an option, it can be costly, especially when you’re already facing the expenses of starting a new business. Drafting these documents yourself may seem like a way to save, but it’s not recommended, as missing key terms could harm your business later on.
If you want to save on legal fees while still ensuring you have comprehensive agreements that protect your business now and in the future, consider using a template like Kyuka Solutions’ online LLC operating agreement or corporate bylaws templates. These templates will guide you in drafting documents tailored to your business needs.
Licenses and Permits
Most businesses will need licenses and/or permits to legally operate. In some regions, states, counties, and municipalities require a general business license, which must be obtained before conducting any business activities. These typically involve an initial fee and recurring renewal costs.
Since licensing requirements can vary at the federal, state, and local levels—depending on industry, location, and other factors—there isn’t a single source that can provide every permit or license your business may need, nor the associated costs. This means you’ll need to conduct some research.
If you’d prefer to save time, Kyuka Solutions’ business license service can assist you. Our experts will provide a comprehensive report outlining the local, county, state, and federal licensing requirements for your specific business.
Fees for Foreign Businesses
A foreign business may not be what you expect. It doesn’t necessarily refer to companies from other countries; rather, any business operating in a state other than where it is registered is considered a foreign business.
If you plan to conduct business in a different state, you’ll typically need a foreign qualification or certificate of authority, which involves paying a fee to that state. Note that some states use different terminology for these certificates, but the function remains the same.
Each state has specific requirements for foreign entities, and here are a few key factors to consider:
● Do you employ anyone from another state?● Does your business own real or tangible property in another state?● Do you have any physical presence in another state?● Does a substantial portion (25% or more) of your revenues come from another state?● Do you take orders in another state?● Do you have a bank account in another state?
If you answered “yes,” “maybe,” or “sort of” to any of these questions, it’s important to review your state’s requirements for foreign businesses.
Most states will also ask for a “Certificate of Good Standing” from your home state before allowing you to do business there. This certificate confirms that your business is legally authorized, compliant with state regulations, and current on filings and fees. Keep in mind that some states may refer to this document by a different name.
If you believe you need to register your business in another state, Kyuka Solutions is here to assist you.
Annual Report Fees
Most states require statutory business entities to submit an annual report and pay a fee to keep the state’s records up to date. In some states, this report is due biennially (every two years), or there may be a similar periodic report that goes by a different name. A few states, like Ohio, have no such requirement. The purpose of these reports is to ensure that the state has the most up-to-date information about your business. Failing to file an annual report can lead to penalties, loss of good standing, or even forfeiture of the business.
With numerous filing fees and deadlines, it can be easy to get overwhelmed. Kyuka Solutions offers an annual report service to help you stay on track, ensuring you never miss a filing deadline.
Reporting Changes to Your Business
To make certain updates to your business, such as changing your address or appointing a new registered agent, you may need to file paperwork with the state, often accompanied by a fee. Kyuka Solutions can take care of this for you. With our amendment service and Worry-Free Compliance service, which includes two amendments per year, we can help you make the necessary changes to keep your business up to date.
Our Business Formation and Compliance Services
Filing your business formation documents correctly and staying on top of reporting requirements can feel overwhelming. Let Kyuka Solutions take the stress off your shoulders. With our Business Formation service, you can be confident that your documents are filed accurately and on time. We also help you avoid costly mistakes and penalties with services like our Worry-Free Compliance offering. Let us handle your compliance needs so you can focus on growing your business.
For more information on setting your business up for success, check out our break-even calculator to estimate how long it will take to reach profitability.
Please note, the content on this page is for informational purposes only and does not constitute legal, tax, or accounting advice. For specific questions, we recommend consulting a licensed professional.