Starting an LLC incurs fees for submitting Articles of Organization, reserving a name, converting or dissolving the company. Fees vary by jurisdiction and can be reduced by completing procedures online. Dissolving the company costs as much as starting it, and changing from a partnership to an LLC incurs fees.
Starting an LLC, or Limited Liability Company, costs money in nearly every region. The fees are usually nominal, but are usually enough to keep anyone from starting a business before giving it a second thought. The most commonly observed fee is the one that is charged upon submitting the Articles of Organization, which must be drafted carefully as there is also a fee for changing them. Reserving a name, whether fictitious or not, also tends to cost money in any area. Converting or dissolving the company is also fraught with LLC fees, which is a factor that should be considered when first starting such an entity.
The first of many LLC fees is the cost associated with initial filing of articles of organization. This document typically includes the name and address of the LLC, its registered agent, and all officers and members. It should also list the nature of the business so that the company’s point is clear, although it should be kept fairly broad since changing articles of organization also costs money. LLC fees for filing tend to vary by jurisdiction, but in general, the cost for item changes is less than the initial filing fee.
Many companies choose to reserve a unique name for their company so that no one else can use it. They can apply under their own name or create a fictitious name to use, but both are subject to LLC fees. Also, transferring the name to another owner usually costs money. Those wishing to reduce the fees associated with such activities can make the changes online, rather than going to the appropriate government agency, as many areas offer reduced LLC fees for online procedures.
LLC commissions do not go away when the owners of the business decide to dissolve it, as this action also costs money. In fact, filing dissolution articles typically costs as much as filing organization articles when starting the company. In addition, you usually need to pay to file a final franchise tax report during the last year of the LLC’s existence, which should be considered before dissolving the corporation. Finally, those looking to change their company from a partnership to a limited liability company may also be faced with fees, so they should make sure the change is worthwhile before completing this task. In most cases, they should also expect to pay the fees associated with starting a new company when they transition their current assets to an LLC.
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