Frequently Asked Questions

What are the ongoing operational costs associated with running an LLC?

The ongoing operational costs associated with running a Limited Liability Company (LLC) can vary depending on several factors. These costs are over and above the initial formation costs, which include business name registration, document filing fees, service fees, and state-specific expenses. One of the ongoing costs is the annual franchise tax imposed by some states. This is a yearly fee and varies widely between states. For instance, the franchise fee in Delaware is $80 a year, whereas in California, it starts at $800. Another ongoing cost is the fee for a registered agent if your company is located outside the state of formation. Registered agents usually charge an annual fee of about $100. In some states, you may also have to publish a notice in a local newspaper regarding the LLC formation. Depending on the requirements of your state, you may have to publish such notice every week for a period of six months. This can be quite expensive in some places. Additionally, there may be costs associated with maintaining your LLC's legal and financial records, as well as any costs associated with hiring a manager to oversee operations if the LLC is manager-managed.