Costs to set up an LLC, Business Corporation or NonProfit Corporation

The cost to set up a new business depends on what level of service you need. If you are a do-it-yourselfer you can set up a new company on your own, and just pay the filing fees. While this works for many people, it is often not the best, cheapest nor fastest way to get started. When you rely on the skill and experience of a seasoned company formation firm, you will benefit by having your set up handled properly and efficiently.

Using A Company Formation Agent

Using a company formation agent involves paying fees, but can be a good value for you. A good Company Formation Agent with help you by:

• Knowing the requirements and advising you on how to avoid mistakes and delays
• Reviewing your documents to make sure they will work the first time
• Letting you know when it makes sense to have your documents expedited
• Avoiding regulatory problems
• Taking care of needs you didn\’t know you had – procedures that must be followed but are not well documented on a Secretary of State website

Some costs depend on your preferences. For example, in California would you rather wait 6 to 8 weeks, or pay $350.00 and be filed in 24 hours? Your service company can help you with insider information like this.

How much risk will you take?

You can save money on your incorporation by getting the classic package of incorporation filing and a corporate outfit with a corporate seal. This has been the trend for several decades, from when only attorneys filed new corporations. The records of the company were typed (yes, using typewriters) on forms and kept in the binder and slipcase. As business owners started setting up companies on their own, they often went with the cheapest solution, and thereby did not finish their documentation, and left themselves at risk of losing their limited liability.

Where do you want to take your business?

Are you looking to obtain 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.