So I went to file an LLC online because I read somewhere it's like $50. Turns out my state charges $200 just to file, plus I need a registered agent, plus annual fees. I'm sitting here with my card out feeling like a clown. Did anyone else get blindsided by the real cost? What's the actual damage here?
LLC Filing
I thought forming an LLC would cost a few dollars
Oh buddy. Wait till you hear about the annual report fee. And the franchise tax. And the 'convenience fee' for paying online. It's a racket.
Depends on the state. I filed in Wyoming for $100 and $60/year. If you're in California or New York, bend over.
registered agent is only expensive if you pay a service. I just used my own address. saved like $150/yr.
Unless your address is a PO box or you move. Then you're refiling paperwork and praying the state doesn't lose it.
Wait, there are annual fees too? I literally just filed mine last month and now I'm scared to check my email.
Yep. Most states want an annual or biennial report. Some are $25, some are $300. It's wild how much it varies. What state are you in?
honestly if you're a solo side hustle making under like 30k, an LLC might be overkill anyway. sole prop + insurance is cheaper.
That's the trap though. People hear 'LLC' and think it's a magic shield. It's not. You still have to keep personal and business finances separate or a lawyer will laugh at you in court.
I paid $500 total my first year. Filing, registered agent, and the annual report that snuck up on me. Now I just budget for it like a subscription to being legit.
A subscription to being legit is the best description I've ever heard.
Also don't forget the BOI report if you're in the US. That one is free but if you ignore it the fines are like $500/day. Not a joke.
wait what
And this is why I'm still a sole prop. I'll take my chances with the scary paperwork later.