LLC and C-Corp Filing Fee with State Taxes (50 States)

Startups are exciting but it is essential to understand the legal and financial landscape before taking the leap. It is vital to consider the type of business entity you choose.

That said, two common types are Corporations (C-Corps) and Limited Liability Companies (LLCs). One significant difference between them is that there are various filing fees and state tax obligations across the United States.

We will look into LLCs as well as C Corps when it comes to filing fees and state taxes in this guide. This starts with initial formation costs through ongoing tax implications so that you can decide on the best business structure for your organization.

Price Segregation for LLCs and C Corps

When comparing between a Limited Liability Company (LLC) and a C Corporation (c Corp), ensure you understand different fees that may come up.

In this case, we will break down these costs into clear categories to comprehend them better.

Initial Formation Costs

LLC

Filing Fees: The cost to file articles of organization can range from $50 to $500, depending on the state.

Operating Agreement (optional but recommended): If outsourced usually ranges from fifty dollars ($50) to two hundred dollars ($200).

Name Reservation Fee (optional): Typically from $10 to $50.

C Corp

Filing Fees: Filling of articles of incorporation can run between $100 and $800 depending on the state.

Bylaws and Initial Board Resolutions (optional but recommended): Usually around $50 to $200 if outsourced.

Name Reservation Fee (optional): Usually about $10 to $50.

Initial Report Fee (required in some states): They vary from as low as $20 to as high as 100 dollars in some states.

Ongoing Compliance Costs

LLC

Annual Report Fee (varies by state): Ranging usually from around $20 to $200.

Registered Agent Fee (if using a service): In most cases, it is roughly $100-$300 per year.

Franchise Tax (varies by state): It can be anything from $50 up to $800 per year depending on the jurisdiction where you operate your business.

C Corp

Annual Report Fee (varies by state): Generally between $20 and $200.

Registered Agent Fee (if using a service): It often starts at one hundred and ends at $300 annually for this item of expenditure;

Franchise Tax (varies by state): it ranges between 100$ – 800$ every year.

Corporate Minutes and Meeting Documentation (if outsourced): Normally at least $100 to not more than $300 per annum.

Tax Preparation and Accounting

LLC

Basic Tax Preparation (Form 1065 for multi-member LLCs): Typically between $500 and $1,500.

Bookkeeping Services (if outsourced): Generally around $50 to $300 per month.

Self-Employment Taxes (for owners): 15.3% of net earnings.

C Corp

Basic tax preparation (Form 1120): Costs between $800 and $2,500.

Bookkeeping and Payroll Services (if outsourced): Generally around $100 to $500 per month.

Double Taxation (corporate profits taxed at 21%, plus personal income tax on dividends).

Legal and Professional Services

LLC

Attorney Services: The fee for attorney services may range from as low as $200 up to or higher than $500 in an hour.

Consulting Services (for strategic planning or compliance): Typically between $100 and $300 per hour.

C Corp

Attorney Fees (for legal advice or complex agreements): Generally between $200 and $500 per hour.

Consulting Services (for strategic planning or compliance): Typically between $100 and $300 per hour.

Security Compliance: Depending on the complexity, costs of securities compliance can vary widely from $500 to a few thousand dollars if issuing stock.

LLC and C-Corp Filing Fee with State Taxes (50 States)

Frequently Asked Questions (FAQs)

What is the best LLC formation service?

1. Easyfiling
2. IncFile 
3. Northwest Registered Agent 
4. LegalZoom 
5. Rocket Lawyer

Which state is the cheapest to open an LLC?

The cheapest state to open an LLC is often considered to be Wyoming due to its low filing fees, no state income tax, and minimal ongoing compliance requirements. Other affordable options include Delaware and Nevada, which also offer business-friendly environments.

How long does it take to get an LLC approved?

The time it takes to get an LLC approved varies by state, but it typically ranges from a few days to a few weeks, depending on the processing time of the state’s business filing office.