Forming an LLC
To get an LLC for free, use an online service and pay only the mandatory state fees.
Costs of an LLC
The main cost is the state filing fee, which ranges from $40 to $500 depending on the state. Kentucky has the cheapest LLC filing fee at $40.
LLC vs. Sole Proprietorship
An LLC legally separates personal and business assets, protecting your personal assets if the business is sued.
Setting up an LLC
- Decide on a business name
- Designate a registered agent
- Get a unique address
- Fill out the formation document
- File it with the state
The process takes 1-2 weeks depending on the state.
Does my LLC need to be formed in my home state? The best state for your LLC is often your home state, but it depends on your business type, location, and taxes. A lawyer can help decide the optimal state.
Can I use a virtual address for my LLC? Yes, a virtual mailbox provides a legal, permanent physical address you can use to register your LLC.
What are the steps to form an LLC online? The same as listed earlier, including getting an EIN and complying with any additional state requirements.
Should I get a business loan or use my own money? Loans help small businesses during cash flow issues, but make sure the repayment terms are realistic to avoid future liability.
Affordable LLC formation
Get a unique business name and address in your state, appoint a registered agent, fill out and file the formation documents.
Use an online service and pay only the mandatory state fees. Some companies falsely claim free registration.
The cheapest state to start an LLC is Kentucky, with a forty dollar filing fee.
Legal Structure and Liability
An LLC legally separates personal and business assets, which provides protection in the event of a lawsuit.
Filing fees range from $40 to $500 depending on the state.
Is LLC hard to get?
Forming an LLC can be straightforward following the mentioned steps. Consulting with the best LLC service provider will help you understand what is required before setting up a limited liability company. Make sure to get all necessary licenses and permits before opening your doors.
To avoid absolute protection, get business insurance to minimize liability. Check with local municipalities about what you need.