Limited liability companies are business structures in the United States where the owners are not responsible for any of the debts or liabilities of the company. With both characteristics of a corporation, as well as those of a partnership or sole proprietorship, it is somewhat of a hybrid entity.
There are specific laws in every state that govern how much an LLC is to form, and how much it costs to pay its annual fees. State filing fees range between $40 to $500. The average filing fee for an LLC in the United States is $132.
What are LLC Expenses and Fees?
Although every state is different when it comes to how much is required to operate, there are always some types of LLC Fees and expenses required. Some of these fees are to start the LLC, while others are to maintain it. If you do not pay these fees, your LLC will be dissolved and you will have to pay to reinstate it if you wish to have limited liability protection.
LLC Fees: What are the Costs to Start an LLC in Delaware?
If you want to start an LLC in Delaware, it does cost money. Although Delaware is a very LLC friendly state, businesses are required to pay a fee before for processing and handling of state documents.
These are a few of the fees Delaware LLC owners are required to pay.
Filing Articles of Organization
In order to establish an LLC you must file articles of organization, also known as certificate of formation or certificate of organization. In Delaware it will be filed with the Secretary of State, and the fee to file articles of organization is $90. The LLC filing fee is a one-time fee paid to the state to form your LLC.
Reserving Name
Every LLC is required to have a unique name in the state of formation. This means you will need to pick something that represents your LLC, but is also individual. In Delaware you can put in a name reservation application to save your name before you officially file, the cost is $75.
File a DBA Name
If you wish to operate your LLC under a different legal name than what is listed in your articles of organization you can do so. This is called a DBA, or “doing business as” name. It is optional, the cost is $25.
What are the Annual Costs of Delaware LLCs?
LLCs aren’t off the hook after paying their initial startup costs, they also have to pay annual fees to stay in good standing with the state. Make sure
LLC Annual Fee
The LLC annual fee is paid each year to the state of Delaware. It is required in order to keep your LLC in compliance. In the state of Delaware, it is paid every year and is $300.
Reporting Fees
In some states, an LLC is required to pay a reporting fee along with an annual fee. This will also come along with a franchise tax. In the state of Delaware, there is no annual reporting fee.
Registered Agent Fees
Every LLC must have a registered agent for service of process in the state. Although this can be the owner or an employee, it can also be a business that specializes in acting as a registered agent. It is important because they need to accept legal papers on the LLC's behalf if it is sued. They will most likely charge a fee to act as your registered agent.
Fees Vary By State
Depending on the state that your LLC is formed in the fees will vary. Despite this, Delaware has been known as a state that is beneficial to form in, primarily for tax purposes.
