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Cheapest way to start your LLC

Discussion in 'Business & Tax Advice' started by xphase, Jun 11, 2011.

  1. xphase

    xphase Junior Member

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    There are tons of websites out there that will help you setup your own LLC..for a fee. This post is to show all of you how you can do it yourself and for CHEAP.

    First, you need a registered agent. There is a company out there that offers the first year free. Sign up here:

    http://www.freeregisteredagent.com/

    Then go to the secretary of state website for the state you want to register in. You can find all the links here:
    http://www.coordinatedlegal.com/SecretaryOfState.html

    See if your state allows registering for your LLC online. If so, DO THIS. You will also need to do a search to see if the business name you want is available. This will be on the same site. You will need to pay the fee for registering, it ranges from $90-$120 depending on the state.

    Next, if you want a EIN (Federal Tax ID) for your business go here, it is FREE:
    https://sa2.www4.irs.gov/modiein/individual/index.jsp

    You might need this for various things you come across, getting a bank account in your business name, etc.

    After you're done you just filed for your LLC and Tax ID for only around $100. And if you did it online usually you get a response in less than a week.

    I took a look at the prices of a site offering this service..here's what it would've cost if you used them.

    Basic LLC Package $99.00
    Prepare Federal Tax ID Application $30.00
    Prepare & Obtain Tax ID from IRS $79.00
    Registered Agent Fee $159.00/year
    State Filing Fee ~$100
    Shipping ??
    Total ~$467

    You just saved ~$367 doing it yourself, and you get your LLC in a week. These other services take around 30 days and charge you extra for expedited shipping!
     
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  2. Sarge902

    Sarge902 Newbie

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    Very good info and easy to follow. As retired atty I can help as needed. PM me and I will evaluate.
     
  3. VelvetVampire

    VelvetVampire Junior Member

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    @ xphase: do you know if its possible for someone from the netherlands to register an LLC in the US. The dutch tax system is a bit crazy, if you earn more than a certain amount you even have to pay +50% income tax.
     
  4. JesusBack

    JesusBack Executive VIP Premium Member

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    Interesting, usually I just go and pay the crazy ass fees. Suscribed for when I open another company.
     
  5. s1wg4u

    s1wg4u BANNED BANNED

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    Could I then use the LLC information to create a paypal account not linked to my social?
     
  6. Cnotey

    Cnotey Power Member

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    Yea those help you start your companies straight rape you. It's actually easier to do it the cheap way anyways hah.
     
  7. Roparadise

    Roparadise BANNED BANNED

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    If I live in the state i'm registering,do i still need a agent?
     
  8. xphase

    xphase Junior Member

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    Sorry I don't know anything about international law..

    Yes, you do. It's required to have one. A registered agent is someone and an address all legal documents can be sent to. The rules vary by state, but usually it has to be a different address than the one on file for the LLC. Also, it can't be in your name, has to be someone different. If you know someone you can use instead of paying for a registered agent service that would be the best scenario. Most people opt for the service but it does cost $$.

    The service I mentioned above gives you the first year free and it's only $99/year after that. Cheapest I've found anywhere.
     
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  9. reinie

    reinie Elite Member

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    This is a lot of help for me since I will be registering one soon.
     
  10. dkanalie

    dkanalie Junior Member

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    Good guide, definitely. Does anyone maybe have any information about the setup for foreigners or non-US residents? Do the same rules apply?
     
  11. Roparadise

    Roparadise BANNED BANNED

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    It depends on the state,some states require that you actually be located there where others don't. Nevada is one,and I think Delaware is another one.
     
  12. JB2003

    JB2003 Registered Member

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    Great info here thanks for the share.
     
  13. liquidx

    liquidx Power Member

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    exactly what i was looking for one thing i never heard about is the registered agent part
     
  14. junkie2

    junkie2 Regular Member

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    That cost you ~100 bucks and a lot of hassle. I just paid $147 at amerilawyer.com and it took me 15 minutes tops.

    I guess if you want to save a few bucks but run into huge annoyances it is worth it.
     
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  15. liquidx

    liquidx Power Member

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    anyone tried them before^ looks like it may be the way to go
     
  16. ukescuba

    ukescuba Jr. VIP Jr. VIP Premium Member

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    i recently went with the $99 package at legalzoom - the state that i live has a fee for filing that you cant avoid which is approximately $247 regardless who you use or if you do it yourself, but for $99 it took me about 20 minutes and i got it back in a week even though they said it would be 28 days...

    was no hassle at all - only thing i had to do after paying and submitting my online application was sign a form and send it back to them... i opted to scan it and email it... but was no hassle at all - Texas state automatically created my EIN number.

    I did all this manually one time before - never again! lol would much rather spend that time making $$$$ :)
     
  17. junkie2

    junkie2 Regular Member

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    Are you saying that you opted to make the LLC in the state that you live in rather than delaware/nevada depending on your exact needs?
     
  18. broker

    broker BANNED BANNED

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    In most states you don't need to hire a registered agent and can act as one yourself if you are in the state

    Code:
    http://en.wikipedia.org/wiki/Registered_agent#Who_can_perform_the_function_of_a_registered_agent
     
  19. jkwak

    jkwak Regular Member

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    In my mind
    Usually a registered agent is a lawyer or CPA who sets up the LLC or corp for you. You really don't need to have a registered agent if you are filing all the forms yourself. I set up my LLC and I'm my own registered agent and it has been 6 years now with no problems whatsoever for me.
     
  20. wowhaxor

    wowhaxor Executive VIP Premium Member

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    This is inaccurate. You don't have to have a registered agent that is different from yourself, you can do it yourself. I have opened a LLC twice, in two different states. One cost like $115 and the other one just under $100 for the LLC. I just went online to the state website and filled out the forms, took about 10 minutes, then paid with my credit card. Then you go to the IRS website and get your EIN in your LLC name, that takes about 5 minutes.

    All you have to do now is wait for your fancy certificate to arrive in the mail.

    This is really simple no need to pay $100 to some middleman for 15 minutes of filling out info that you will most likely have to fill out and give to that middleman anyways.
     
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    Last edited: Jul 10, 2011