So I just renewed my LLC with the state. That part was $75. Fine. But then I started adding up the other annual stuff: registered agent ($120), business license renewal for the city ($50), annual report filing fee ($25), plus the CPA charged me $350 to review my books at year-end. That's over $600. Am I missing anything? Is it like this for everyone?
Licensing
The state fee is only part of what I pay annually
You forgot the part where they nickel and eime you for the privilege of existing. Mine's about the same. The registered agent is the one that gets me because I use a service and it auto-renews unless I cancel 60 days out. Learned that the hard way.
what kind of business? because if you're just a single-member LLC with no storefront or employees, you can often skip the city license and be your own registered agent. unless you ctually need the anonymity or aren't in-state.
I'm a home-based graphic design gig,single member, no employees. I do have a physical office I rent part-time though. Does that change the city license thing?
Probably does, yeah. If you have a lease on actual space the city wants its cut. Sucks. My CPA charges me $350 just to say 'looks fine' too. I keep thinking I'll learn QuickBooks and file myself but then I look at the forms and go nope.
also not all cities require a general business license. some just want you to pay a flat fee if you're in certain zones. worth calling and asking. also, beingg your own registered agent is literally just putting your name on the form and having a mailing address. if you're not hiding from anyone it's a waste of $120.
I think a lot of people treat the registered agent service like insurance. Sure you can do it yourself, but then you get the fun of getting served legal papers at your house if anything ever happens. $120 feels cheap for avoiding that specific anxiety tbqh.
If you're a one-person LLC with basically no assets and no employees, the odds of getting served are pretty low, but ellbee has a point. That said, I'd cut the CPA before I cut the agent service. $350 to 'review' books that you probably already keep pretty simple? That's the one I'd shop around on.
I asked my guy if the annual report fee was the same as the license. He laughed. ten minutes later I was more confused than before. accounting is just paying people to explain why you're pa ying other people.