The cost of creating a Limited Liability Company (LLC) varies greatly from state to state and can be fairly expensive. The good news is that some states have substantially lower formation fees for LLCs and other related expenses than others. So, which state has the lowest formation costs for an LLC?
Wyoming is thought to be the least expensive state to create an LLC. The state charges only a $100 registration cost and a $50 annual report fee. Additionally, Wyoming has no minimum annual tax obligations and no state-level taxes on LLCs. This makes it the perfect state for business owners wishing to create an LLC without spending a fortune.
The price of incorporating an LLC is not the only aspect to take into account when deciding on a state, though. The state’s business rules, taxes, and regulations, among other things, should also be taken into account. Due to its business-friendly legislation, robust legal system, and well-established corporate infrastructure, Delaware is regarded as the finest state for LLCs. Delaware also charges only $90 for filing and $50 for annual reports.
With a $100 filing fee, Louisiana has one of the lowest LLC formation costs when compared to other states. Additionally, business owners must submit a $35 annual report. However, there can be additional charges associated with getting an Employer Identification Number (EIN) in Louisiana. Although requesting an EIN is free, there are certain businesses that provide services to do so for a fee.
The acquisition of a State Tax ID may also be required for those wishing to run a business in Louisiana. The Louisiana Department of Revenue’s website offers a free online application for a state tax identification number. In conclusion, there can be large regional differences in the price of incorporating an LLC. Wyoming may be the least expensive state in which to incorporate an LLC, but business rules, taxes, and regulations should also be taken into account while making this decision. Louisiana has rather cheap formation charges for LLCs, but business owners should be aware that getting an EIN and a state tax ID comes at an additional cost. Prior to selecting the finest state for your business, it is crucial to conduct research and evaluate several states.
You must submit a Trade Name Registration form to the Louisiana Secretary of State’s office in order to establish a DBA (doing business as) in that state. This can be done by mail or online. The registration is valid for five years and costs $75. A notice of your new trade name must also be printed in the parish newspaper where your company is located. These procedures must be followed in order for you to legally utilize your trade name for your company in Louisiana.