All kinds of businesses can benefit from using a limited liability company (LLC) as their legal form of organization. The hybrid nature of the LLC makes it special because it combines corporate asset protection with partnership flexibility. Meaning, you get all the tax filing options you need and liability protection for your personal assets. After deciding on a name and the type of business you want to operate under an LLC, there are three key options for setting up an LLC that you can choose from. We’ll start with the least expensive and end with the most expensive.
1. DIY. Go to Your Home State’s Secretary of State Office and Fill Online
You can set up an LLC by going to the secretary of state’s website for your state and filling out the form online. Typically, you’ll have to create a user account and you will need to complete paperwork that includes the names of the LLC owners, the name and address of the LLC’s registered agent, and other basic information about you and your business.
You will also need to pay a filing fee, which is typically between $50 and $200 depending on your state. There may be various other questions asked such as whether it will be member-manager or manager-managed.
Cost: Government Filing Fee (and time spent researching).
2. Drafted Legal Will File for You
Drafted Legal is a top-rated supplier of online legal services for startups and businesses. They can help to make sure your business complies with the law. Drafted Legal offers LLC registration services that help you start a business LLC, create, set up, and register without filing with your home state’s Secretary of State office and hiring an expensive lawyer. For only $197, Drafted Legal will take care of all of your LLC filing needs.
Drafted Legal’s LLC filing services include:
- Filed for you in seven days, any state
- Operating Agreement included
- No upsells
- Best practices video demonstrating how to open a bank account, obtain a company license, and perform wise actions for your business
The best part is that Drafted Legal is owned and run by a trusted and reputable lawyer — giving you peace of mind knowing that your LLC registration process is handled expertly and is secure and legal from the start. This one is sort of an in between DIY and the high costs of paying for a lawyer but with many of the same benefits.
Cost: $197 + Government Filing Fee.
3. Pay a Lawyer To Do It
At the beginning of your business, forming an LLC is a crucial step, thus it makes sense that hiring a lawyer to set up your LLC is a good idea. If you have the budget to do so, it is typically recommended to involve an attorney early on. A lawyer can give you legal guidance and help you decide if an LLC is the best type of business entity for you. Also, lawyers can assist you with the many legal requirements to set up an LLC and file all the necessary documents completely and on time.
However, hiring the service of a lawyer to set up an LLC will cost thousands of dollars. Most lawyers charge you for legal services at their usual hourly rate.
Cost: $1,500 and up. Varies depending on the lawyer but should start on the lowest end around $1,500.
Check out Drafted Legal for more information about LLCs and learn more about how Drafted Legal makes it easier and cheaper for you to set up an LLC.