How Much Does it Cost to Start an LLC?

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How Much Does it Cost to Start an LLC?

First Things to Consider for Your LLC

For most entrepreneurs, forming a Limited Liability Company (LLC) is the first step in starting their small business. Whether you are up and running and seeking to reduce personal liability, or you are just getting started and want to legitimize your venture, the business registration process is quickly encountered by most entrepreneurs.

The most common questions posed to the Duquesne Small Business Development Center (SBDC) consultants are:

1) Do I need an LLC?

2) How Long Does It Take to Form an LLC?

3) How Much Does It Cost to Form an LLC?

In any case, the Duquesne SBDC is here to help clients understand these questions, and you can access no-cost consulting, business tools, and education resources through our website at https://www.sbdc.duq.edu/.

How Much Does It Cost to Start an LLC?

So, what does it cost to start an LLC in the state of Pennsylvania? If this is as far as you want to read and you are looking for the short answer, the cost of forming an LLC in Pennsylvania is $125. While there are many steps involved in forming an LLC, below are 3 of the high-level steps and their associated costs:

Make sure your business name and website domain are available for use here

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Get an Employer Identification Number (EIN) through the IRS here           

$0

File a certificate of organization with the Pennsylvania Department of State here

$125

 

Registration costs that differ from what’s shown above can occur if entrepreneurs utilize a legal representative to assist them in the registration process. Having a lawyer assist in the process will cost $500 - $1,000, which includes the $125 State registration fee. Online legal services such as LegalZoom charge businesses $200 - $300, which includes the $125 State registration fee. Businesses that choose to register themselves, with the help of their SBDC consultant, will spend $125 in addition to 30 to 60 minutes of their time. Here at the Duquesne University SBDC, our consultants can help you with forming an LLC at no-cost (except for the $125 application fee).

Frequently Asked Questions

Lastly, we’ll cover some common frequently-asked questions associated with the cost of forming an LLC:

Q: Does the name of my business need to match my LLC name?

A: No, businesses can file a fictitious name or “doing business as” (DBA) for an additional cost of $70.

Q: Does my LLC from another state cover me in Pennsylvania?

A: No, you’ll need to re-register with Pennsylvania as a Foreign LLC for a cost of $250.

Q: Do I have to pay yearly to renew my Pennsylvania LLC?

A: No, the cost to form an LLC is a one-time fee. However, you should consult an accountant on any local, state, and federal taxes associated with your LLC. 

 
The Duquesne University Small Business Development Center (SBDC) offers no-cost, confidential consulting services and educational programs in Southwestern Pennsylvania to empower entrepreneurs and small business owners with the knowledge they need to start, grow, and prosper.

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