Understanding Business Formation Costs
Forming an LLC typically costs $50-$500 in state filing fees, while corporations may cost $100-$800. Delaware and Wyoming are popular for their business-friendly laws and lower fees. Beyond formation, consider ongoing costs like annual reports, franchise taxes, and registered agent fees.
LLC vs Corporation
LLCs offer flexibility and pass-through taxation with less formality. S-Corps can save on self-employment taxes but require payroll. C-Corps are ideal for venture funding but face double taxation. Consult a tax professional to determine the best structure for your situation.