The Cost To Set Up An LLC – Determining Factors

Abbreviated as LLC, a limited liability company is a type of business structure that provides liability protection to you and your personal property. In other words, it separates you from your business, and hence, your personal assets and finances won’t be at risk of claims and auctions in case of a lawsuit, according to an article published by the Business News Daily. While there are different fees necessary to set up an LLC, the specific amounts may vary due to factors such as location, state laws, and the hired personnel. Here’s a detailed look at some of these factors.

State Filing Fee

This is basically the fee incurred in submitting your articles of organization to the state department at the initial stages of setting up an LLC. More specifically, it involves filling a form with information such as name, nature, and address of your business, list of owners, as well as the name and address of the registered agent. This information is essential in creating rights, duties, liabilities, and other responsibilities of the members of the company. Currently, the average state filing fee in the U.S. is $132, according to the LLC University.

Registered Agent Fee

Also known as a resident or statutory agent, a registered agent is a third-party entity that deals with the state on your behalf in terms of receiving official papers such as lawsuits. While it is mandatory to have a registered agent, you can opt to act as your own agent, provided you have a physical address and are available during business hours. To hire a registered agent, you will have to pay a registered agent fee, which may vary from one service provider to another.

Additional Expenses

Depending on your state and location, you may also need to complete additional tasks that require some fees. For instance, some states may require you to publish a notice in the newspaper, informing the public about your intention to set up an LLC. Others may oblige you to search your proposed business name in the state database to ascertain that it’s not among the registered companies. You can also incur some costs in developing the operating agreement of your company, which outlines the management and financial responsibilities of the members. These are additional expenses, which the state expects you to pay for out of pocket.


In general, the set up an LLC varies depending on factors such as registered agent fee, additional expenses, and state filing fees.