If you’re seeking to form a Limited Liability Company, or LLC — also known as a Limited Liability Corp — you’re making a smart decision with a number of benefits. Depending on the state you register in, however, you may be facing different costs for acquiring LLC status. Forming an LLC may offer many protections, but you should also be aware of your options when it comes to choosing a state to file in.

State-Specific Fees

The LLC fee for registration can be as low as $40 or as high as $500 depending on the state, and can change with new regulations and legislations each year. Check changes in state-specific requirements each year before filing a new business, or submitting your initial and annual reports.

Understanding Tax Structures

LLC corporation tax structure isn’t quite as fixed as other types of corporations. LLCs often use a pass-through structure that eliminates taxes at the business or company level, instead placing tax accountability for business income and loss onto the owners. If they choose, though, owners of an LLC can use S corp or C corp tax structures, with different filing requirements and tax rates.

Benefits of an LLC

Just as the name suggests, an LLC comes with limited liability compared to other companies, protecting owners from loss of personal assets in the pursuit of debts or other settlements. LLC require compliance with far fewer regulations, and face only minimal restrictions on ownership by persons or legal entities. Organizational structures are also highly variable, with no requirements involving a Board of Directors or other managing body.

Start Your Business Today

If you need help deciding where and how to incorporate your business or require assistance applying for a tax ID number, GovDocFiling can help you. Our easy guides, simple forms, and helpful staff can simplify the process and make it nearly effortless to incorporate your LLC in the state of your choosing.