How much would it Cost to Incorporate a Business
What are the basic costs involved in incorporating a business? How much should you pay for hiring a lawyer to help you file the paperwork and help you understand the process?
Have your questions answered by reading our guide on how much do states ask for having your business registered, and how much lawyers charge for helping you do so.
The most basic costs that business owners would have to pay when incorporating a business are: fees for filing articles or certificate of incorporation with the Secretary of State, and fees for various governmental filings. The expenses are what business owners must have to pay if they choose to incorporate by themselves and not employ interactive software, incorporation services or an attorney. Incorporating a business may be done with or without an attorney by following state-issued guidelines, although it would be easier and faster with the help of one.
Articles of Incorporation and Governmental Filing Fees
Filing fees vary from state to state and may be a set amount and/or based on the number of shares authorized. Filing fees are typically between $75 and $125, although they could also be as low as $45 and as high as $300, which is the case when you are incorporating in Texas. Filing fees could also vary depending on whether the corporation is a non-profit or for-profit organization. In California, it is $100 for a traditional "general stock" corporation and $30 for a non-profit. Depending on the type of business being incorporated, the state might collect between $50 and $200 in government filing fees. Add to this bill about $100 if the filing was done with the aid of an online incorporation company.
First Year Franchise Tax Prepayment
Some states require new corporations to pay franchise tax in advance. That amount could range from $800 to $1000.
Incorporation Attorneys Fees
Attorney fees could vary depending on the package included in the service offerings and on the case type – whether it is an expedited or a regular processing. An expedited processing could cost an additional $50 to $100. The most basic service could cost $300, which only covers business name search/reservation and preparation and filing of the articles of formation. That is exclusive of fees for articles of incorporation and governmental filing. Legal Club of America charges members $295 for regular processing.
A complete service, which includes, in addition, tax application and complete corporate kit, could cost $450 -- still exclusive of filing fees. Usually, attorneys help clients fill out documents, and understand the process; give advice on the best business structure for the company; prepare minutes of meetings; and review the paperwork.
Attorneys could also charge a flat fee of about $500, inclusive of filing fees. That could include the name reservation fee, publication fee, as well as the minute book. The bill could go up depending on the number of shareholders involved and the complexity of the agreement between shareholders, and of how the company plans to conduct its business (whether it plans to do business in another state, for instance). Attorney fees could run up to thousands of dollars for complicated transactions.
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