Cost to form an LLC?
So whats the cost to creat a simple LLC if you are just creating like a small software company...many ppl on here have said they started a business in college and I have met a lot that have (using their rents money or existing LLC). From research I've seen 5-15K depending on legalities.
Anybody know from experience?
Yes - $250-$400 to form an LLC. Do it in Delaware.
My buddy had a lawyer do some basic review of the articles of incorporation of his LLC, draft documents, help him file, etc., and I think he paid 1500-2000 for that alone, plus state filing fees which are fairly easy to look up. If it's just you and you don't have other partners, investors, etc., I see no reason not to forgo the lawyer for now and use docstoc, etc. to look at basic examples. I'd just make sure you involve the lawyer when taking the next step.
I've used:
https://www.delawareinc.com/index.cfm
$400ish - they file all the paperwork, mail you a nice little packet with your company info.
Adding to what some other folks have said: the above just registers your entity. It basically creates a federal EIN for you to use in tax returns, which also lets you create a bank account in the name of that entity (so you can write and receive checks to and from that entity).
Any legal review is separate from the above, and not needed for just setting up the entity. It's strictly for any partnership agreement, i.e. if you're just creating a one man LLC, you don't need anything more than the incorporation services. If you are establishing a partnership, then you'll want an attorney to help draft the partnership agreement because THAT is what dictates everything about how your company operates, distributes profits, distributes liability, etc.
I used Legalzoom to form a corporation for a nonprofit I started. Experience was pretty good. Imagine it would be similar for an LLC. If you really start to gain traction that's when you shell out the big bucks on the legal eagles.
You can usually go to a local college, Small Biz Admin, etc. groups for free advice. Most states have all the resources needed as well, for instance I'm in FL and you can use sunbiz.org.
If you do it yourself, it's only like 200 bucks to register with the various state, taxing and IRS documents. I had one back in high school which did College Admissions.
It depends on how much revenue you make, if it's under around $10,000, many states will waive your taxes as well.
You can use legalzoom or northwest registered agent. Depending on your future plans, you need to incorporate in Wyoming, Delaware, or Nevada. The least expensive is Wyoming. Delaware and Nevada have franchise fees each year, around $250, plus you'll most likely need a registered agent, $100-$150 a year. The filing fee in Wyoming is only $100 and there are no personal taxes on the distributions from your LLC income. Wyoming only taxes what assets or whatever you have in the State, which you won't have any. So instead of paying $250 every year in Nevada or Delaware, you can pay $50 in Wyoming annually.
Since you'll be a single member LLC you, by default, will be taxed as a sole proprietorship. There are no personal income taxes in Wyoming so you'll basically be taxed the $50 annual fee and whatever your home state income taxes will be.
For a college student not bringing in boatloads of money, I would go with Wyoming. Delaware is the best if you are planning on going public with an offering.
Don't pay someone to get you a Federal EIN number. It takes you 10 minutes on the IRS website to get one for free.
Good luck, if you have any questions you can PM me.
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