The Cost of Setting Up a Corporation or LLC: Everything You Need to Know

If you’re an entrepreneur, there’s a good chance you’ve considered starting your own company. But before you can start selling your products or services, you need to decide whether to set up a corporation or a limited liability company (LLC). The good news is that both types of businesses provide legal protection for your personal assets, but the cost to set up a corporation or LLC can vary depending on the level of service you require.

Using a Company Formation Agent

Using a company formation agent can be an excellent choice for those who don’t have the time or desire to learn corporate procedures. A good company formation agent can help you avoid costly mistakes and delays, refer you to qualified legal and accounting professionals, and ensure your set up is handled properly and efficiently. Although using a company formation agent involves paying fees, it can be a great value for the peace of mind that comes with knowing your company has been set up correctly.

The Levels of Service

If you’re a do-it-yourselfer, you can set up your company on your own and just pay the filing fees. However, if you’re not comfortable handling the paperwork yourself, it may be more cost-effective to use a company formation specialist. Basic level service involves filing the paperwork yourself, obtaining a federal tax number from the IRS, completing organizational minutes or an operating agreement, and launching your business. If you are filing on your own, just beware of unique post-incorporation requirements that many states require, including legal publication, first annual reports and other miscellaneous compliance requirements.

For those who prefer more assistance, the standard level of service includes company formation, obtaining a federal tax number, preparing organizational minutes and bylaws or an operating agreement, and up to three share certificates, all FedExed to you after completion. And if you’re a non-US resident, don’t worry! We have 40 years of experience helping non-US residents set up companies in the USA, and we offer a free incorporation consultation to guide you through the process.

Where to Incorporate Your Company

If you’re seeking venture capital, angel investment, or private equity, incorporating in Delaware from the beginning can simplify your life later on. Delaware’s laws and legal system are very attractive to investors and their legal advisors, which can make the process of securing funding easier. Incorporating in Delaware means continuity and simplicity, for a small additional cost. To learn more about why Delaware is a great place to incorporate your company, click here.

Conclusion

Setting up a corporation or LLC involves a variety of legal procedures, and the cost can vary depending on the level of service you require. Although it’s possible to file the paperwork yourself, it may be more cost-effective to use a company formation agent to handle the details for you. Incorporating in Delaware can be an excellent choice for those seeking venture capital, angel investment, or private equity, as the state’s laws and legal system are very attractive to investors and their advisors. Whether you’re launching a small business or seeking funding, it’s important to choose the right type of company and ensure it’s set up correctly from the beginning.

Where do you want to take your business?

Are you seeking venture capital, angel investment or private equity? If so, incorporating in Delaware from the beginning can simplify your life later on. Delaware’s laws and legal system are very attractive to investors and their legal advisors. Starting with a Delaware entity means continuity and simplicity, for a small additional cost. To learn more about why Delaware is a great place to incorporate your company, click here.