An LLC legally separates personal and business assets. Most owners form one rather than a sole proprietorship for protection if sued.
Starting an LLC
To get an LLC for free, use an online service. Pay only mandatory state fees. Some companies falsely claim free registration.
State Filing Fees
Filing fees range from forty to five hundred dollars depending on the state. The cheapest state to start an LLC is Kentucky, with a forty dollar filing fee. Arkansas is second cheapest. Check your state for financial incentives.
Get a unique business name and address in your state. Get the formation document. Get a registered agent. Fill out and file the document.
Choosing the Best State for Your LLC
Some states are better for LLCs but the best is often your home state. Using a lawyer can help decide the optimal state. Suitability depends on business type, location and taxes.
A limited liability company (LLC) protects personal assets and maintains limited liability. Forming an LLC gives flexibility to choose taxation and allows easy transfer of ownership. But forming an LLC can be expensive and time-consuming. There are ways to get an LLC for free or at a discount.