Category Archives for Uncategorized

Analyze Life Force Fitness, Inc.

Activity-Base Usage (hrs. per unit) X Activity Rate per Hour = Activity Cost
  • Motor assembly 1.50 x $20 = $30.00
  • Final assembly 1.00 x 18 = 18.00
  • Testing 0.25 x 22 = 5.50
  • Rework 0.40 x 22 = 8.80
  • Moving 0.20 x 15 = 3.00
  • Activity cost per unit = $65.30

All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive.

Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor to the treadmill during final assembly.

Thus, motor issues can be diagnosed and solved without having to disassemble the complete treadmill. This change will reduce the average rework per unit by one-quarter.

Determine the new activity cost per unit under the rework improvement scenario. Round your answer to 2 decimal places.

Answer

New Activity cost per unit = $63.10.

Explanation

The computation of the new activity cost per unit is shown below:

Activity Hours per Unit Per Hour Activity Cost
Motor assembly 1.5 $20 $30
Final assembly 1.00 $18 $18
Testing 0.25 $22 $5.50
Rework 0.30 (0.4 – (0.4 ÷ 4)) $22 $6.60
Moving 0.20 $15 $3.00
Activity cost per unit $63.10

The TRUE Cost to Form an Illinois LLC

Starting your new business in the state of Illinois? Want to learn the costs of forming an Illinois LLC? We are here to help! Before you get your business up and running, you will need to form an LLC. You have to keep an eye on filing fees, registered agent charges, annual reports, etc.

To make sure you know how much it costs to start an LLC in Illinois, we have put together this comprehensive guide with the common Illinois LLC costs you’ll have to pay.

Quick Summary

We know that as a new business owner, you are going to be short on time. To save your time and energy, we will provide you with quick highlights about the true cost to form an Illinois LLC.

The LLC filing fee in Illinois is $150 for hard copy submissions.

If you file online and use an expedited filing service as well, it will cost you $250. Thinking about reserving the name of your LLC? You will have to pay $25 for an LLC name reservation in Illinois. Apart from these major expenses, you will have to pay annual report fees, business operating agreement costs, etc.

Form Your Illinois LLC Quickly

Don’t want to get lost in confusing legal paperwork? You can choose a qualified, professional LLC incorporation service such as ZenBusiness or IncFile. By paying a minimal service fee, you will be able to relax and let them handle the job for you!

  • Signup for ZenBusiness if you are looking for a professional LLC incorporation service with affordable rates and excellent customer feedback to help you form your LLC in Illinois
  • Signup for IncFile if you are working with a small budget, and can’t afford expensive services. With the free Silver package by IncFile, you can not only get your LLC formed but will also get a free year of registered agent services!

Illinois LLC Costs

Requirements Cost
LLC Name Reservation $25
Registered Agent $0-$125 (per year)
Certificate of Formation $150
Business Operating Agreement $0 (free templates available)
Federal Tax ID Number (EIN) $0 (free on IRS site)
Annual Report $75
Taxes Varies

To get your LLC formed in Illinois, you have to select a name for your LLC, choose your registered agent, and file the articles of organization. These are the essential steps that you have to take so that your company can be incorporated.

After that, you will have to get an EIN, pay annual report fees, business taxes, along with a few other expenses. Getting confused? Don’t be – we are going to explain all these details for you below!

Certification of Formation Filing Fee

Articles of Organization are the documents that you have to fill to incorporate your company. To legally create your LLC, you need articles of organization. You have the option to file the articles of organization for your Illinois LLC through mail or online.

  • Filing Paperwork by Mail. If you file your paperwork through the mail, you have to pay a one-time filing fee of $150. Within 10-15 business days, your Illinois LLC will be formed!
  • Filing Paperwork Online. You can file your documents online. It will also cost you $150. However, if you want to expedite your filing process, you will have to pay $100 additionally. Instead of 10-15 business days, your LLC will be formed in only 1-2 business days!

This is the biggest expense when it comes to forming your LLC.  We recommend that you file your paperwork online since it is easy, efficient, and you have the option for expedited filing as well. Moreover, make sure that you have selected the name for your LLC as well as your registered agent.

Want to save your time? Hire a professional LLC formation service!

Illinois LLC Name

Decided on your LLC’s name yet? If you have, and don’t have the filing paperwork ready, or haven’t selected a registered agent yet, you should reserve your LLC name. We know the time and effort it goes into selecting a name for your business and you don’t want someone else grabbing it just because you weren’t vigilant!

By paying a $25 fee, you will be able to reserve your name for a period of 90 days. This is non-renewable. On the other hand, for Illinois LLC formation, name reservation is not a prerequisite. This means that if you select a name, search the Illinois business database, and then file your articles of organization immediately, you can do so.

Illinois Registered Agent

Going to file your articles of organization? Haven’t selected a registered agent? Well, you can’t file your paperwork! A registered agent is an individual or service that will accept legal documentation on your behalf from the state of Illinois.

Moreover, a registered agent acts as a point of contact for receiving payment reminders, annual report notices, business tax notices, etc. For an individual to become a registered agent in Illinois, they are required to have a physical street address in the State.

Moreover, they have to be available during business hours in case the state of Illinois contacts your LLC. You have three options here. You can become your own registered agent.  If you become your own registered agent, you will have to be vigilant about potential legal issues and business filings which will create added pressure.

Moreover, your address will become part of the public records, thus, no privacy! However, you will not have to pay anything if you are your own registered agent. Secondly, a family member or close friend can act as your registered agent.

However, they would need to be a resident of Illinois. The third option is to hire a professional registered agent such as Northwest Registered Agent. Forming an LLC is a time-consuming and complicated process.

We recommend that you spend more time planning and growing your business instead of going through piles of paperwork. Hire a professional incorporation service such as ZenBusiness or IncFile to form your LLC and they will provide you free registered agent services for a period of time as well!

IncFile’s free package is a great option if you want to get your LLC formed free of cost and get a whole year of free registered agent service! Read our comprehensive Best Registered Agent Services review to know more about high-quality registered agents!

Illinois Operating Agreement

What is the hierarchical structure of your company? What will be the governing rules and principles for the working of your company? How will you share the profits? All this, and a lot more, is part of your business operating agreement.

Unlike the articles of organization, you don’t have to file the business operating agreement with the state of Illinois. This is an internal document and paperwork that defines how your taxes will be paid, how your LLC will be run, etc.

You can easily find operating agreement templates online and customize them according to the needs of your LLC. However, if you choose a professional LLC formation service, they will provide you with customized business operating agreements as part of their incorporation packages.

You can also buy operating agreements separately from these companies by paying $40-$60. You can also get the help of a business attorney to make sure that all the legalities are covered. However, LLC incorporation services charge less than a professional business attorney!

Illinois EIN Number

As citizens of the US, we all have social security numbers. Similarly, for LLCs, the government has EINs. EIN stands for Employer Identification Number and you get one from the IRS after your LLC is formed. With the help of EIN, the IRS can easily identify your LLC for filing and tax purposes.

With the help of an EIN, you can open a bank account in Illinois for your business. Moreover, you can handle employee payroll, apply for specific permits and licenses, and a lot more. Before you apply for EIN, you have to wait for your LLC to be formed. In case your LLC filing is rejected due to any reason, you will have an EIN for a non-existent LLC.

You can apply for an EIN yourself from the IRS and it will cost you nothing. However, it is possible that you will not be able to understand the legal jargon, and will end up wasting time and effort. Therefore, you should get the help of professional LLC formation services.

EIN acquisition is part of most of the packages offered by LLC formation services. You can buy this service separately by paying $40 to $100 as well. Moreover, a business attorney can help you with EIN acquisition as well but the charges for this will vary from one lawyer to other

Illinois LLC Bank Account

It is a prudent choice to keep your personal and professional bank account separate. To open a business bank account in Illinois for your LLC, you need a copy of your articles of organization, the business operating agreement, and your LLC’s EIN.

Moreover, if your LLC has multiple members, you can also bring the banking resolution to authorize the other members to open business accounts in the name of your LLC. Northwest Registered Agent not only helps you with LLC formation but also provides banking resolution templates to ensure a smooth business for you!

If you open a business bank account yourself, you will save money since opening a bank is free of cost. However, you will have to pay in terms of the time you spend going to the bank several times to get a bank account opened! Hire a professional LLC formation service and save your time and energy folks!

Illinois Business Attorney Fees

Have questions about the LLC formation procedure? Have been searching all over the internet for information but are still not satisfied? It is better that you consult a business attorney instead of taking chances and making errors on your own.

Even though the rates of professional attorneys are pretty steep, at least you will have peace of mind! Business attorneys usually offer free consultations for the first time and then charge you for the rest of the consultations.

Another option that you have is to contact the customer services of a reputed LLC incorporation service. Northwest registered agent has a stellar customer service system with personalized and one-on-one customer service. If you have any queries, their Corporate Guides will be happy to answer them for you!

Moreover, LegalZoom and Rocket Lawyer are comprehensive legal services that offer legal assistance as part of their LLC formation packages.

Foreign Qualification Fees

Do you have an LLC in another state and are now expanding your business into the state of Illinois? You will have to pay foreign qualification fees. Instead of filing the articles of organization, you will have to submit an application for transacting business in Illinois.

You will have to pay $150 for this as well. However, it is a one-time fee, so you don’t have to worry about the hefty expense every year.

Illinois LLC Annual Fees

Every LLC in Illinois is required to submit an annual report. This report keeps the state aware of the status of your LLC and keeps your information up-to-date. The annual report fee is $75. However, the real killer is the late submission penalty fee.

If your annual report is late by 60 days, you will have to pay a $100 penalty every year after that! You can submit the report online or send a hard copy. It is better to use a professional LLC formation service for this because we, as humans, tend to miss deadlines.

And we can’t afford to miss the annual report filing because of the hefty penalty!

Illinois LLC Taxes

Since LLCs are “pass-through” entities, the members of the LLC have to file their personal taxes instead of the LLC filing a tax return. Moreover, there is no Franchise Tax for your Illinois LLC. However, LLCs have to pay “Personal Property Tax”.

This tax is 1.5% of your overall income. Other than that, there may be additional taxes for your company as well. Which taxes you are going to pay is determined by the type of business you own, the location of your LLC, etc.

From income withholding tax to accommodations tax, there are various kinds of taxes you will have to pay. If you are selling goods through your Illinois LLC, you are legally obligated to pay sales tax to the state.

You have to submit the sales tax returns annually to the state of Illinois. To know which taxes are applicable to your LLC, you should consult a professional business attorney or tax consultant. LLC formation services such as ZenBusiness or IncFile offer business tax consultation services so that you can know everything clearly.

It is better to get professional help in this case because you are not going to be well-versed in the tax requirements of your state as well as federal taxes.

Business Licenses

Do you need a business license for your LLC in Illinois? Well, this depends on the location of your business as well as the type of your business. For example, if you are going to open a brewery in Illinois, you will need a Liquor Manufacturing License.

Moreover, every city and county has its own licensure rules for businesses. Make sure that you check out the rules of your local government to see what permits and licenses your business requires. The cost of each license varies.

You might need federal and state licenses as well, so check the respective websites to know more. Instead of making errors on your own, hire a professional to check the licensing requirements for your business in Illinois.

How to form an Illinois LLC yourself

Running a successful business is a dream that most of us have. Forming your Illinois LLC is the first step you have to take to make your dream a reality. We know how important your time is and so we have put together this list of steps you have to follow to get your LLC up and running.

One of the lesser-known Illinois LLC costs is the cost of your time to prepare and file the paperwork when you could be focusing on your business!

To make sure that you don’t waste your time and make errors, get a professional LLC formation service such as ZenBusiness or IncFile to handle all the paperwork for you.

  • Signup for ZenBusiness if you value excellent customer services and are looking for affordable rates and stellar quality
  • Signup for IncFile if you have a small budget yet want professional services with glowing customer reviews to handle your paperwork.

However, if you want to form your LLC yourself, here are the steps you need to follow!

  1. Naming your Illinois LLC

The first thing you have to do is decide the name of your LLC. After choosing the name, search the Illinois business database to ensure that the name you have selected is not already taken up by someone else.

You can reserve your LLC name for a period of 90 days as well. Moreover, the name of your LLC must contain the words LLC, L.L.C, or Limited Liability Company. Illinois law doesn’t allow abbreviations such as Ltd. Or Co. Moreover, words such as Corp., Inc., etc. are also not allowed.

Check the Illinois State Name rules to know more.

  1. Choosing a Registered Agent

The next thing you need to do is select your registered agent. Anyone who has a physical address in Illinois can act as the registered agent for your LLC. You are legally obligated to designate a registered agent for your LLC otherwise your articles of organization will be rejected.

We advise that you hire Northwest Registered Agent or pick one from our Best Registered Agent Services review instead of becoming your own registered agent.

  1. Filing your Articles of Organization

After choosing a name and registered agent for your LLC, you have to file the articles of organization with the Secretary of State of Illinois. The paperwork must include:

  • The name of your LLC
  • The address of your LLC
  • Name and address of the Registered Agent

A few other things such as the name and addresses of your managers, duration of the LLC, are also required. The filing fee for the articles of the organization is $150 and you can file online or through the mail.

  1. Creating a Business Operating Agreement

Once your LLC is formed, you should get a business operating agreement. As we have discussed above, you are not legally obligated by the state of Illinois to create a business operating agreement. However, this internal document will help you a lot in the future in case of any legal issues.

With the help of the best LLC formation service you choose, you can get a business operating agreement customized to your LLC.

  1. Getting an EIN

Even if you don’t have any employees, if your LLC has more than one member, you are required to get an EIN. You can easily obtain an EIN by filling an online application on the IRS website. It doesn’t cost you anything if you do it on your own.

However, choosing a professional LLC service for EIN acquisition will take loads off your back!

Cost to Start an Illinois LLC: Conclusion

To get your business up and running and form your LLC, you have to pay a filing fee of $150 in the State of Illinois. You will also have to get a registered agent, business operating template, EIN, etc.

Frequently Asked Questions

Why should I form an LLC?

If you are starting your business in Illinois, it is a good idea to form an LLC. If you form an LLC, it will limit your personal liability in case of lawsuits and business debts. Moreover, you will have a lot of flexibility when it comes to management, taxation, and ownership.

How can I check if the LLC name I have chosen is available?

To ensure your LLC’s name is distinct and unique, you can search the Illinois State Business database for free. The name search option is available on the official website of the state.

How much does it cost to form an LLC in Illinois?

For filing your articles of organization, you will have to pay $150. If you want to reserve the name of your LLC, you can do so by paying a $25 reservation fee.

Do I need a business operating agreement for my LLC in Illinois?

No, you are not legally obligated to get a business operating agreement. However, it is an important document that prevents any managerial and financial misunderstandings in the future.

Are there any business licenses that I have to get to operate my LLC in Illinois?

This depends on the type of your business and the location of your business. To check which local licenses you need, you check with your local government’s office. For state licenses, you can check the Illinois state website.

The TRUE Cost to Form an LLC in Texas

Are you an entrepreneur starting your new business in Texas? Before you can get started officially, you have to form your LLC.

One of the first questions you’ll probably have is about the Texas LLC costs. In this comprehensive guide, we’ll cover exactly how much it costs to form an LLC in Texas to help you on your entrepreneurship journey.

Quick Summary

When it comes to forming an LLC in Texas, there are specific requirements that applicants need to meet. If you are in a hurry and don’t want to read through all the details that we have provided below, we will make it easier for you!

To start an LLC in Texas costs $300. This fee is paid to the Secretary of State of Texas when you file the certification of formation of your LLC.

Form Your Texas LLC Quickly

Forming an LLC yourself is a long process full of paperwork! To make sure you get it right, you should hire an LLC service to do it for you. Here are our top two picks to get all of the legal requirements taken care of.

Texas LLC Costs

Requirements Cost
LLC Name $0-40
Registered Agent $0-$125 (per year)
Certificate of Formation $300
Operating Agreement $0 (free templates available)
EIN Number $0 (free on IRS site)
Franchise Tax Reports $0 (for most LLCs)
Taxes Varies

Apart from the Certification of formation, there are several other costs that you need to consider when you form an LLC in Texas. Let’s take a look at them one by one.

Certification of Formation Filing Fee

The first thing that you need is to file the Certification of Formation. This is the largest of the Texas LLC costs and the filing fee for this is $300. If you file the Certificate online, it will take 2 to 3 business days. If you file it by mail, it will take 7 to 10 business days.

Whether you file the certificate of formation online or send a hard copy, the cost is the same. For expediting the filing process, you can pay an extra $25 fee as well. The good news is that you have to pay the filing fee only once. To maintain your LLC, you don’t have to keep paying monthly or annual subscriptions.

Once your LLC gets approved, the Secretary of State will send you a Certificate of Filing, a Welcome Letter, along with a stamped copy of the Formation certificate.

Texas LLC Name

For starting an LLC in Texas, you don’t have to reserve a name as an obligatory step. However, it can be helpful if you reserve a name for your LLC. For example, if you are working out some business details and have a perfect name for your company in mind, then it is a good choice to apply for a name reservation.

For $40, you will get exclusive rights to the name for 120 days. If you want to renew your subscription after that, you can do so as well. You can reserve the name either online or by filling a paper form. However, if you have worked all the details and are prepared to file your LLC, then you can get the Certificate of Formation instead of reserving a name.

Simply call the state or email them before you file the Certificate of Formation in order to check if the name you want for your LLC is available. Registering your company name in this scenario will not cost you any money.

Texas Registered Agent

If you are forming an LLC in Texas, you are obligated by the law to nominate a registered agent for your company. Are you asking what a registered agent is? Well, let us explain. Your state needs a reliable and credible way of communicating with you and your business.

An individual or a professional service must be there during regular business hours to receive legal documentation from the state. This person or service is the registered agent for your business. Therefore, it is very important to designate a registered agent for your LLC.

Your registered agent will not only handle the sensitive tax and legal documents but will also keep your business compliant with state law.  You can become your own registered agent or you can hire a professional to do so for you.

If you become your own registered agent, it will not cost you anything. However, you will have to be available during the working hours, in case the state contacts your business. Furthermore, your address will become a part of the public records and you don’t want people to violate your privacy, now do you?

Moreover, it will be an added responsibility and as humans, we are likely to make mistakes and miss deadlines on important legal documents.

Therefore, we recommend that you hire a professional registered agent like Northwest or ZenBusiness to take care of your needs. With affordable prices and discounts for the first year of usage, you will be in very safe hands.

Texas Operating Agreement

You would need an LLC operating agreement as well. There are several websites that will help you get an LLC operating agreement as a part of their LLC formation packages, or as a standalone feature as well. The operating agreement outlines the hierarchy of the company as well as the operating rules of the company.

It doesn’t matter whether you are forming a multi-member LLC or a single-member company. There are a few things that every operating agreement should have such as naming the organizational members, their role and positions, etc.

The rules should shed light on important matters such as management and voting, capital contributions, distribution of profits, dissolution rules, etc.

Texas EIN Number

Once your business is formed, you will need a federal tax ID known as the EIN (Employer ID Number). There are plenty of incorporation services out there that will get your EIN for nominal charges. However, you can get an EIN from the IRS for your newly registered LLC free of cost.

To hire employees for your business, you will have to create an account with the Texas Workforce Commission. Here, you can register an unemployment tax account, learn about the employment law, and file unemployment taxes.

Texas LLC Bank Account

Every company needs a business bank account to manage its finances. If you keep your personal account separate from the business account, it will help a lot when you will file your tax returns. It doesn’t cost any money to open a business bank account.

Once you get your EIN, you can go to the local bank, and get in touch with them to create a bank account for your business.

Texas Franchise Tax Reports

Depending on the size of your business, and the revenue you generate, you don’t pay the franchise tax to the Texas Comptroller’s office. However, you do have to file the report for the franchise tax even though your total revenue is below the threshold.

Moreover, you also have to file a PIR i.e. Public Information Report. To file both of them, you don’t have to pay anything. Usually, you have to file the first PIR a year after your LLC has been formed.

Texas Business Attorney Fees

Do you have any questions regarding the LLC incorporation process? Do you have any concerns that you want to address? You can get in touch with a business attorney to alleviate your fears. Even though business attorneys are not cheap, they do provide professional business advice that can help you in the long run.

Moreover, you can also contact the customer services of reputed incorporation services like ZenBusiness or Northwest Registered Agent and get your queries answered.

Foreign Qualification Fees

If your LLC was formed in some other state, and now you are expanding into the state of Texas, you will have to pay the foreign qualification fee. Instead of the Certificate of Formation, you will have to get the Application for Registration.

You will have to pay a steep price of $750 for your application. You can apply for registration online or through a paper form.

Business Licenses

You need a few more licenses apart from the Certificate of formation to do business in the state of Texas. The type of license and the cost will depend on the type of business you are doing as well as the location of your business. Your LLC might require state, federal, or local permits to legally operate.

Contact the Texas Department of Licensing & regulation to see if your LLC needs any permits or licenses. Moreover, you need to contact the local chamber of commerce in your area to learn about any licensing requirements.

Once you have created your Texas LLC, you will require a sales tax permit to do business in the state. You can apply for the permit online. There are going to be a few other business licenses that your city or county might require, so it is always a good idea to do your homework first.

How to form a Texas LLC Yourself

Now that you know the costs of creating an LLC in Texas, is time for the big question: how to register a Texas LLC yourself? Well, don’t worry – with the help of a few tips and tricks, you will be able to form your LLC in no time!

Before you file your paperwork, you need to plan out your business details, hierarchical structure, business operating rules, etc. This will be helpful when you actually file your articles of organization with the state and you are required to provide the information.

It’s worth noting here that one of the Texas LLC costs if you form the company yourself is simply your time. There is a process and paperwork involved that is not a financial cost, but your time might be better spent on your new business.

This is why we recommend you use ZenBusiness or IncFile to form your Texas LLC. It’s quick, easy, and covers all of the paperwork for you!

Naming your Texas LLC

The first step in starting your LLC in Texas is finding a suitable name. Make sure that you choose a name that is available and is not already being used by some other entity. Moreover, the name should meet the Texas business naming requirements. Lastly, if the name is available as a web domain, that would be a huge advantage for you as well.

Your business name needs to have the phrase “Limited Liability Company” or any of its abbreviations such as L.L.C, LLC, Company, Co., Ltd., etc. Moreover, it should not have any words or phrases that would confuse your company with a governmental agency such as the FBI, State Department, etc.

It is a good idea to read the Texas Secretary of State’s guidelines to learn more.

Choosing a Registered Agent

All LLCs in the state of Texas have to designate a registered agent to act as the LLC’s point of contact with the state. The individual you choose as your registered agent must be 18 years of age or older. Moreover, they should have a physical address in the state.

They have to ensure their availability during normal business hours so that the state can get in touch with them if required. You can become your own registered agent. However, there are plenty of incorporation services out there, like ZenBusiness and IncFile, who give discounts and a free year of registered agent services if you use their services. We recommend that you check them out and take a load off your shoulders.

Filing your Articles of Organization

Once you have appointed your registered agent, the next step is to file for the certification of formation. You will have to pay a $300 fee for this certificate. You will be required to fill in the information regarding the type of business entity you want, the membership structure of your company, etc.

Creating a Business Operating Agreement

You are not legally obligated to have a business operating agreement, but it is a good choice to get one. A business operating agreement is a document that outlines the hierarchy of your company as well as lays down some operating rules for your LLC.

It not only ensures that all the owners and partners are on the same page, but it also avoids future conflicts. If you choose a quality LLC formation service such as ZenBusiness or Northwest Registered Agent, you will get business operating templates as part of their LLC formation packages at very nominal prices.

Getting an EIN

The last thing that you need to do is obtain an EIN from the IRS. It is basically the social security number for your business. With the help of an EIN, you can open your business bank account, file federal taxes as well as state taxes. Moreover, you can hire employees for your company as well.

Cost to Form a Texas LLC: Conclusion

You must be thinking that it costs a lot to get your LLC up and running. Don’t worry, most of these charges are one-time fees, and you won’t have to pay them again. Moreover, if you hire professional incorporation services, then you can get features like business operating templates, registered agent services, etc. at discounted rates.

As a new business owner, you are bound to be swamped with loads of pending tasks. Forming an LLC is a time-consuming process and instead of spending your time sorting out paperwork, you should let a professional LLC formation company help you form a Texas LLC.

Frequently Asked Questions

To form my Texas LLC, do I need a business attorney?

It is not a legal obligation to hire an attorney for forming your LLC in Texas. However, if you want to hire one to take care of your business needs, make sure that you know the hourly costs of an attorney. Instead of hiring an attorney to form your LLC, you can get the services of a professional incorporation service that costs less and provides a lot more facilities.

What is the difference between a corporation, LLC, and LP?

Corporations are owned by several shareholders and are managed by a particular board of directors. In the case of LLCs, they are owned by members who usually manage and run the LLC as well. An LP is a partnership between various limited partners.

You can form a corporation, LLC, or LP, by filing a certificate of formation with the Texas state.

What is a close corporation?

A domestic, for-profit corporation is known as a close corporation. You have to state clearly in your certificate of formation if your company fulfills this criterion.

Can one individual act as the director, sole shareholder, and member of an LLC?

Yes, this is possible. For professional corporations and for-profit entities in Texas, one person can be the president, sole director, and sole shareholder of the LLC. However, in the case of non-profit corporations, the Texas Business Organizations Code states that LLCs should have a minimum of at least three directors.

What is the difference between a manager of an LLC and a member of the LLC?

A person who holds membership interest or ownership in an LLC is its member. An LLC requires at least one member for its formation. A manager of the LLC can be a member with management authority. On the other hand, the manager of the LLC can be an individual who is overseeing the day-to-day operations without having any membership interests in the LLC.

In your certificate of formation, you have to mention how your LLC will be managed. If you are not sure which management structure will be best for your LLC, you can call a business attorney or contact professional LLC services such as ZenBusiness or Northwest Registered Agent.

Do I have to submit an annual report with the state for my business?

Not every LLC has to file annual reports with the state. Only specific types of business have to do so. If your company is registered as a Limited Liability Partnership (LLP), then you are required to file an annual report before June 1 every year. The secretary of state will send you a notice to file the annual report before March 31.

All non-profit corporations are required to submit a report when they receive a notice from the state. Usually, they have to submit a report once every 4 years. The notice will be sent to the registered agent to ensure that you don’t miss the deadline.

A few limited partnerships that are not obligated to file franchise taxes will have to file a report upon receiving notice from the Secretary of state. Again, the period is usually four years in this case.

Can I create a non-profit LLC in Texas?

Under the Texas Business Organizations Code, no specific term like “nonprofit LLC” exists. However, the code allows you to form an LLC and run it for non-profit purposes. A non-profit LLC is not automatically exempt from paying state taxes or federal taxes. You will have to check with the IRS or get in touch with the Texas Comptroller to see if your LLC can get tax-free status.

Why is a Texas LLC the best for you?

When it comes to choosing the type of business entity, you have many choices. However, a few choices such as limited partnership, sole proprietorship, etc. might place your personal assets at a risk. How? Well, if you get sued, or you can’t pay your business debt, then your personal vehicles, funds, assets, etc. can be seized to cover the costs.

However, if you create a Texas LLC or a Texas Corporation, then you will get personal asset protection. You and your business are considered separate entities, so you will not be responsible for the business debts.

How many types of LLCs are there?

There are various types of LLCs. If you are the owner of your LLC, the LLC will be termed as a single-member LLC. If you have partners, then your LLC would be a multi-member LLC. If your LLC is being formed in the state where you do business, it will be termed as a domestic LLC.

If an LLC is formed in a state other than the one in which it does business, it is termed as a foreign LLC. Professional LLCs are those entities that represent industries like medicine or law. Texas series LLC provides protection across multiple divisions of the company, which is very common in real estate.

Enter Mia’s total profit/loss for the month of January account in the box below

Are you stuck on this EverFi answer? Let’s break this down for you to give you the correct answer AND show you how to work it out:

For the month of January we can see that Mia has Revenue, Fixed, Expenses and Variable Expenses like so:

Revenue

Dog Food $3,500
Cat Food $2,100
Pet Treats $1,200
Pet Suppies $2,750
Total $9,550

Fixed Expenses

Rent $2,000
Salaries $2,000
Utilities $1,000
Product Stock $4,000
Total $9,000

Variable Expenses

Newspaper Ad $200
Total $200

Okay, so the question here is asking us to “Calculate whether Mia had a profit or loss”.

The first thing you need to do is add up the expenses.

Total Expenses = Fixed Expenses + Variable Expenses
Total Expenses = $9,000 + $200 = $9,200

So now we know that total expenses is $9,200 and total revenue is $9,550.

All you have to do is deduct total expenses from total revenue:

Profit/Loss = $9,550 - $9,200 = $350

Mia’s total profit/loss for the month of January account is $350.

Hope that helps you!

Enter Mia’s total profit/loss for the month of May account in the box below

Are you stuck on this EverFi answer? Let’s break this down for you to give you the correct answer AND show you how to work it out:

For the month of May we can see that Mia has Revenue, Fixed, Expenses and Variable Expenses like so:

Revenue

Dog Food $3,650
Cat Food $2,850
Pet Treats $1,650
Pet Suppies $1,800
Total $9,950

Fixed Expenses

Rent $2,000
Salaries $2,000
Utilities $1,000
Product Stock $4,000
Total $9,000

Variable Expenses

Card Purchase $300
Total $300

Okay, so the question here is asking us to “Calculate whether Mia had a profit or loss”.

The first thing you need to do is add up the expenses.

Total Expenses = Fixed Expenses + Variable Expenses
Total Expenses = $9,000 + $300 = $9,300

So now we know that total expenses is $9,300 and total revenue is $9,950.

All you have to do is deduct total expenses from total revenue:

Profit/Loss = $9,950 - $9,300 = $650

Mia’s total profit/loss for the month of May account is $650.

Hope that helps you!

IncFile Bank of America Offer

Had a great idea for a business and are ready to get your company up and running? To ensure the safety and protection of your personal assets, the first thing you need to do is form an LLC. However, we are not all lawyers and all that legal jargon and paperwork goes right over the top of our heads.

IncFile Bank of America Offer

With the help of a professional, high-quality LLC incorporation service, you can get your LLC formed quickly and efficiently. There are so many business incorporation services out there so that it becomes difficult to choose one that fulfills all your needs and requirements.

IncFile is a very popular, well-known LLC incorporation service that is loved by its users and respected by its competitors. With stellar customer feedback and reasonably priced packages – they even have a free starter package – IncFile is a company that we absolutely trust and recommend.

Normally, we are not big supporters of third-party offers since they don’t bring a lot of value to the table. Usually, they are just attempting to increase the potential amount of revenue by the services. However, this IncFile Bank of America Offer is something that caught our attention and we deem it worthy enough of being shared with you.

Both IncFile and Bank of America are trusted brands in their own industries which makes this offer highly interesting for the users. In this comprehensive IncFile Bank of America Offer review, we will take you through everything that you need to know about this offer and help you decide whether it is a good fit for your business or not!

Without further ado, let’s get started!

IncFile is one of our recommended LLC formation services, and with the Bank of America offer in the mix as well, it’s a great choice to quickly and easily form your new LLC.

Therefore, IncFile teamed up with the Bank of America to make the most of their offers. If you are an IncFile client, you will receive exclusive offers and benefits from the Bank of America if you establish your business banking account with them.

The IncFile Bank of America offer provides you $450 value in terms of various bonuses along the way. If you open a new business banking account with Bank of America, and you are an IncFile client, you will earn $100 if you deposit $1000 within 60 days of opening your bank account.

Moreover, if you pay a minimum of 2 bills through the bank, you will earn $50. Another benefit you will get is a $300 statement credit if you use the credit card associated with the bank account and make purchases worth $3000.

All in all, they give you $450 for using their different services which is a pretty great offer if you ask us! Therefore, this feature makes using IncFile as your LLC incorporation service even more enticing!

  • IncFile is the best LLC formation service when it comes to efficient and affordable professional business formation service. They not only help you get your LLC up and running but with their Silver starter package, they do so absolutely free of charge!

IncFile Bank of America Offer – Detailed Review

Now that you know what the Bank of America offer from IncFile is briefly, it is time for us to delve deeply and thoroughly into all the aspects of this offer. When you are completing the order form for the formation of your LLC at IncFile, you will come across a third-party offer from the Bank of America.

Importance of a Business Checking Account

What are the benefits of having a business bank account? Plenty, to say the least! Not only will you be able to keep your personal and business finances separate, but you will also be able to use the various banking features such as online bill payment, credit cards, and a lot more.

Moreover, with the help of a business bank account, it will be easier for you to keep track of all your financial transactions. Furthermore, you will have an easy way of receiving payments from your customers.

When you start a new business, you need to separate your personal and professional finances. To do this, you need to open a separate business checking bank account to maintain your corporation’s or LLC’s corporate veil.

The greatest feature and benefit offered by an LLC is the limited liability protection that it provides to its users. Under this limited liability protection, your personal assets such as your house, car, etc., remain safe and protected no matter what your business financial standing is.

If you don’t keep your personal and business finances separate, it is likely that you will lose the protection offered in case you get sued or face bankruptcy. Therefore, every LLC needs a separate business checking account.

Bank of America Offer for IncFile Users

This offer is for a business bank account with the Bank of America for the customers of IncFile. They offer you a value claim of $450 which can be broken down as follows.

  • Earn $100 on Money Deposits. If you open a new Bank of America business checking account while being an IncFile client, you are eligible for a $100 value claim. If you deposit $1000 in your account within 60 days of its opening, you will get $100.
  • Earn $50 on Online Bill Payments. The second bonus that this offer gives to the users is $50. We live in a digital world where most of our lives are lived online from office work to business transactions.

The Bank of America comes with an online bill-pay feature that allows you to pay different bills without the hassle of physically visiting the bank. If you pay a minimum of two bills through the Bank of America within 60 days of opening your business checking account, you will earn a bonus of $50.

  • Earn $300 on Credit Card Usage. Bank of America offers credit card accounts as well. If you have a business checking account at the bank, you can open up a credit card account as well and link both the accounts with each other for ease of use.

Once you do that, you are eligible for a $300 bonus if you fulfill a condition. The condition is to make a minimum amount of $3000 worth of purchases using your credit card within 90 days after you have opened your credit card account.

It is clear that the offer does provide you bonuses worth $450 if you fulfill certain conditions. Let’s see whether you need a business checking account and a credit card account, and a few other things before we make a decision regarding this offer.

Bank of America Offer for Non-IncFile Users

Now that you know the importance of having a business checking account, comes the next question. Should you go with the Bank of America for your business checking account or not? Bank of America offers business checking accounts to everybody, even if they are not IncFile clients.

To know whether the IncFile Bank of America offer is worth availing of, we need to compare this offer with the amenities accessible to non-IncFile users.

Bank of America offers for business checking accounts vary from one location to another, but overall, the Bank does offer a few things that you should take a look at.

  • Earn $200. If you open a business checking account with the Bank of America and deposit $5000 in the account within 15 after you open it, you can earn a $200 bonus.
  • Earn $500. Another offer that they have is a bonus worth $500. You will get this bonus if you deposit $20,000 in your account within 15 days of opening it.
  • Earn $750. The last offer they have for non-IncFile clients is a bonus of $750. If you deposit over $50,000 in your business checking account, you will earn $750.

However, these bonuses all have a common catch: You have to maintain your balance for at least 60 days to be eligible for the bonus. Moreover, you also have to make 5 electronic payments via your bank account.

If you fulfill both of these conditions and keep the respective amount of deposits in your bank, you will get these bonuses.

Comparison of the IncFile Users Offer vs Non-IncFile Users Offer

If we compare the offers for IncFile and non-IncFile clients, we can clearly see that IncFile clients get more value in the long term. Even if you get less amount in terms of money, but you don’t have a time limit for your deposits.

Moreover, the amount of money you need to earn the bonuses is quite less as well, which as new and emerging business owners, you will highly appreciate. Furthermore, there is no bonus offer for online bill payment or linking up your credit card account with your business checking account.

Therefore, if you are going to start a business, it is better than creating a business bank account at the Bank of America as an IncFile user to avail of the maximum benefits.

Things to Keep in Mind Before Opening a Business Bank Account

Opening a business bank account is an important decision that will prove to be beneficial for you down the road. There are a few mistakes while opening a business bank account that you should avoid. Moreover, there are few things you need to keep an eye out for while opening a bank account.

Let’s see what they are.

Don’t Open a Business Bank Account without creating an LLC

Haven’t formed your LLC and are thinking of opening a bank account? Think again. It is foolhardy to open a bank account before you form an LLC and an EIN to pay your taxes. Having a legal business entity, an LLC ensures that your identity is separate from that of your business.

You can open a personal bank account as a sole proprietor, but in that case, you will not only miss out on the benefits of having an LLC, you will not be able to enjoy the benefits of the IncFile Bank of America offer.

By missing your business and personal funds, you will forgo the advantages of deductible business expenditure when it comes to taxes. The last thing that anyone wants is for their business issues to seep into their personal lives and without a business checking account, and an LLC, this is highly likely.

Get all the Required Documents Professionally

When you open a personal bank account, you need to provide identity verification documents to your bank. Similarly, when you are opening a business bank account, you have to give documents to the bank regarding your business.

The documents that you need for a business bank account are:

  • Articles of Organization
  • Federal Tax ID (EIN)
  • Business operating agreement
  • Business Licenses

These documents are the requirement for opening a business bank account. Therefore, instead of going around making mistakes on your own, you should get professional and expert help. This will save your time, effort, and energy, which is extremely important as a new business owner.

Thus, we recommend that you go for the professional services offered by IncFile to get your LLC formed in a professional manner. Moreover, you will be able to enjoy the perks of IncFile’s Bank of America Offer as well!

Thoroughly Search the Features of the Bank Account

Are you the owner of a single-member LLC or are running a multi-member LLC? Would you be going to the bank to withdraw your money or will someone else do that for you? There are various things that you need to consider when you are creating your business bank account.

There are various bank account packages available, and if you don’t keep your business’s needs in mind, it is very likely that you will end up choosing the wrong package for your LLC. Usually, an LLC needs a business checking account (like the one offered by Bank of America), a business savings account, and a business credit card for future use.

Moreover, banks offer features such as online-only bank accounts, line of credit, merchant services accounts, etc. However, it is likely that you don’t need them. For example, what will you do with an online-only account if you’re going to deposit cash, right?

Therefore make sure that the services and offers you choose are perfect for your LLC’s needs. Consult the expert and courteous customer services available at IncFile to know everything in detail before you make a decision, folks!

Look for a Long-Term Banking Partner

The bank you choose to create your business account with is going to be a long-term partner for you. From keeping financial records straight to putting in requests for future loans, you are going to have a lot of interactions with your bank.

The longer you stay with a bank, the more offers you will get from them in the form of discounts, special features, and other value-added services. Therefore, even if you don’t need a lot of banking services today, keep an eye out for the features provided by the bank to ensure that they are the right choice for your LLC’s future.

IncFile Bank of America Offer – Final Word

For your business, you are going to need a business checking account. There are plenty of bonuses that the Bank of America offers. If you keep $5000 in your account, they will even waive the $15 monthly fee that they have.

Moreover, you can do 200 transactions without paying any fees as well. Moreover, if you deposit up to $10,000, they will not charge a deposit fee. Moreover, they have a mobile app, so that you can transfer funds, pay your bills, and access your account no matter where you are!

All in all, the Bank of America is a great bank, with plenty of credibility and loads of beneficial features for their customers. The offers available at Bank of America are enticing and alluring but as an IncFile user, you will get an even better deal.

Therefore, we recommend that you avail the services of IncFile for forming your LLC. Even if you have no money, you can go with their Silver business formation package, which is absolutely free of cost!

IncFile Bank of America – Frequently Asked Questions

What is an LLC?

An LLC is a type of business structure that keeps your personal and professional assets separate by providing limited liability protection. Limited liability protection ensures that even if your business assets are under stress, in case you are being sued or are on the verge of bankruptcy, your personal assets such as your house, car, etc., will remain safe and protected.

Is IncFile a good choice for LLC formation help?

To form an LLC, you need plenty of legal paperwork from filing the Articles of Organization to opening a business checking account. To save your time, energy, and efforts, you should get the help of a professional LLC incorporation service.

However, these expert services cost a lot of money, which makes them less feasible for new business owners working on a budget. For LLC owners like these, IncFile is the perfect option. They help you form your LLC without charging you an LLC formation service fee. All you need to do is pay the state fees and you are good to go!

What is the Bank of America IncFile offer?

All business owners need a business bank account to keep their finances straight. The Bank of America offers various benefits to its customers when they open a business banking account with them.

However, if you are an IncFile user, and go to the Bank of America to open your business banking account, you will get added value in form of a $450 bonus, once you fulfill certain criteria.

How does having a business bank account help?

A business bank account will help you stay legal and compliant with the tax rules of your state as well as the federal tax rules. Moreover, you will be able to track your business finances and costs and will be able to keep an eye on them effectively.

Which types of businesses need a business bank account?

If you have an LLC, an S-corp, a C-corp, a non-profit organization, or are even running a sole proprietorship, you should get a business bank account to keep your finances straight.

What details you are going to need in order to open your business bank account?

To open your business bank account, you are going to need the following things:

  • Federal Tax ID (EIN)
  • Name of the State of Business Formation
  • Date of Business Formation
  • Legal Business Name
  • Personal Information of the Business owner(s)
  • Details of the business manager(s)
  • Banking Business Resolution

Moreover, you will also need the articles of organization that you filed with your state of formation. If you are operating under a fictitious name, then you have to send the fictitious name certificate or the DBA certificate to the bank as well.

Is there a discount code at IncFile?

No, IncFile doesn’t offer a discount code. Rather, they provide you absolutely free services! For new business owners, they offer their Silver Business Formation package that is free of cost. They will form your business for you and will also act as your registered agent for the first year without charging you anything at all.

The TRUE Cost to Form an LLC in Virginia

Have big plans for your new business? Before you can get started, you will have to incorporate your company. When you are starting an LLC in Virginia, there are a few startup costs that you should keep an eye on.

Virginia LLC Costs

To make sure you know how much it costs to start a Virginia LLC, we have put together this comprehensive guide with the common Virginia LLC costs you’ll have to pay.

Quick Summary

Short on time and want to get a jump start? Before we dive in with the detailed cost review, let’s give you brief highlights of the cost to start a Virginia LLC. To start an LLC in Virginia, you will have to pay $100 to file the Articles of Organization.

You can file the documentation online or send them through the mail. If you want same-day processing, you will have to pay $200. Moreover, if you want next-day processing, you will have to pay $100. Moreover, you want to reserve your business name before you file the documents, you will have to pay $10 for that as well.

The fee for same-day processing of name reservation is $200 and $50 for next-day processing. There are going to be additional costs such as annual report fees, registered agent charges, operating agreement costs, etc. as well.

If you choose a professional LLC formation service such as ZenBusiness or IncFile to form your LLC for you, they will take care of everything you need to get your LLC up and running.

Form Your Virginia LLC Quickly

Want to save your time and energy and don’t want to get lost in legal paperwork? You can hire a professional incorporation service that will take care of all your business needs. Services such as ZenBusiness and IncFile will take care of your LLC formation process at a very nominal fee.

  • Signup for ZenBusiness if you want high-quality services at affordable prices. Not only will they form your LLC, but you will get free registered agent services for a year as well!
  • Signup for IncFile if you are on a tight budget. IncFile has a free LLC formation package that not only helps become a proud LLC owner but offers various enticing features as well.

Virginia LLC Costs

Requirements Cost
LLC Name $0-$10
Registered Agent $0-$250 (per year)
Certificate of Formation $100
Operating Agreement $0 (free templates available)
EIN Number $0 (free on IRS site)
Franchise Tax Reports $0 (for most LLCs)
Taxes Varies

In order to form a Virginia LLC, you have to register your company with Virginia State Corporation Commission. However, before you get started, you have to choose your LLC’s name, select a registered agent for your company, and create a business operating agreement.

Moreover, you will also need a Federal Tax ID (EIN) from the IRS as well as figuring out taxes your LLC will have to pay taxes at federal and state levels. Sounds a lot? Don’t worry – we are here to help. We will lead you through all the steps you need to follow to establish an LLC.

Ready? Let’s get started!

Certification of Formation Filing Fee

The first thing you have to do is prepare your articles of organization and file them with the State Corporate Commission. This is the largest and most important of the Virginia LLC costs and you will be charged $100 to process the Certification of Filing.

However, it is a one-time charge and you will not have to pay the fees again as long as your LLC is up and running. The filing process usually takes 3-12 business days. If you want next-day or same-day processing, you will have to pay $100 and $200, respectively for expedited service.

If you choose a professional LLC formation service, they will handle all your paperwork and will keep you informed about the status of your order.

Virginia LLC Name

Have you selected a name for your LLC? Working out a few business details and want to reserve your tentative company name beforehand? If you want to reserve your name before you file your documents with the State of Virginia, you can do so.

For a small fee of $10, you can reserve your LLC’s name for 120 days. If you want to renew the reservation later, you can do so by paying $10 again. You can reserve your name online or by filling out a form.

However, you are not legally obligated to reserve your name. You can call the State Corporation Commission in Virginia, and confirm the name availability. If the name is available, you can simply file your Articles of Organization and register your company’s name.

You will not have to pay anything for the Virginia LLC name as long as you don’t reserve it first.

Virginia Registered Agent

After selecting your company’s name and before filing your paperwork, you have to select a registered agent for your business. A registered agent is a person who communicates with the State of Virginia on your behalf.

Your registered agent will handle all the tax documents, sensitive legal documents, and will keep your company compliant with the Virginia business law. Therefore, you need to choose a registered agent that you can trust.

You can become your own registered agent as well. However, you will have to keep up with all the business filings and handle any potential legal issues. Moreover, since your address will become part of the public records, you will have to say goodbye to privacy.

Want to save yourself from the stress of all the paperwork and any penalties due to delinquent filings? It is a good idea to hire a professional registered agent such as Northwest Registered Agent or ZenBusiness to ensure your annual reports and any other legal forms are filed in an efficient and timely manner.

Usually, most professional LLC formation companies offer registered agent services as a part of their LLC formation plans. For the first year, you won’t have to pay anything to companies like ZenBusiness and IncFile. After that, you will have to pay yearly subscription fees that vary from $99 to $250.

If you choose to become your own registered agent then you will not have to pay anything. For the sake of convenience, privacy, and discretion we recommend that you hire a professional registered agent.

Virginia Operating Agreement

The next thing you need for your LLC is an operating agreement. A business operating agreement is the legal document that not only outlines the hierarchical structure of your company but will also lay down a few rules your company will run by.

It doesn’t matter whether you are going to start a single-member LLC or multi-member LLC. Having an operating agreement is pretty important for your LLC. Instead of creating an operating agreement yourself, the best way to ensure you have a legally binding and thorough business operating agreement, you should purchase one from a professional LLC formation service.

Most of the LLC formation services such as ZenBusiness and IncFile provide you with business operating agreements as part of their multi-tiered formation packages. You can buy an operating agreement separately online as well. The fee for operating agreements usually ranges from $40 to $200.

Virginia EIN Number

We all have social security numbers. An EIN is similar to a social security number but it is the federal tax ID for LLCs. With the help of an EIN, you can hire employees, open your business bank account, and a lot more.

You can get an EIN from the Virginia Department of Taxation. Simply register your business by completing the registration form R-1. After registering, your LLC will be assigned a tax account number that you can include on your payments, tax returns, or any other tax filings.

If you don’t want to apply for an EIN yourself, you can get the help of LLC incorporation services online. A few of them offer EIN acquisition services as a part of their formation packages. You can get this service separately as well.

If you go the DIY route, you will get your EIN free of cost from the IRS. If you hire a business attorney, the rates will vary according to their hourly rates. LLC formation companies usually charge $40 to $100 for acquiring an EIN for your LLC from the state.

Virginia LLC Bank Account

After getting your EIN, the first thing you should do is open your business bank account. Every successful LLC needs a bank account for its financial proceedings. Even if you have a personal bank account, it is a good idea to separate your personal and professional financial dealings. This will help you a lot when you file your taxes.

Simply get in touch with your local bank and they will guide and help you to form your LLC’s bank account. If you open an account yourself, you will not have to pay any money.

If you hire a professional LLC formation company, they will handle the opening of your LLC as a part of their incorporation packages. Instead of making several trips to the bank, save your time and get the services of ZenBusiness or IncFile!

Virginia Taxes

LLCs are classified as “pass-through” entities by the federal government. This means that you won’t have to file a corporate tax return for your LLC. Individual members of LLCs have to report the income and the losses on their personal tax returns.

State income tax and franchise tax are not imposed by the State of Virginia on LLCs. However, you have to file business tax returns in order to keep your LLC’s information updated with the State. In specific situations, your LLC will have to pay business-related taxes such as sales tax, use tax, withholding tax, unemployment tax, etc.

You should visit Virginia’s tax website to know more in detail. LLC formation services usually offer business tax consultation free or for a nominal fee. They have professionals who guide you regarding the taxes you have to pay, and when.

Therefore, it is better to get help from a tax expert and professional, instead of making errors on your own.

Virginia Business Attorney Fees

If you have any concerns or questions regarding the LLC formation procedure, then the best option is to get in touch with a professional business attorney. They are definitely not cheap and you will have to pay a hefty sum in lieu of attorney fees.

However, for your peace of mind, it is necessary to get professional help. Business attorneys usually offer free first consultation (30 minutes at most), and then charge hourly afterward. Usually, business lawyers charge between $200 to $400 per hour.

However, we recommend that you contact the customer services of a professional LLC formation company, like Northwest Registered Agent, and let their representatives answer your queries. Moreover, comprehensive legal service providers such as LegalZoom and Rocket Lawyer also exist who will not only take care of your LLC formation needs but will also provide professional legal help.

Foreign Qualification Fees

Do you have an LLC in another state and are now expanding your company into Virginia? If yes, then you don’t have to file your Articles of Organization. Instead, you will have to submit an application to get the Certificate of Registration.

The filing fee for the certificate is $100 and you only have to pay for it once. You can send an application online or fill out a physical form and then mail it.

Business Licenses

Before you can do business in Virginia, it is highly probable that you will have to get a business license. However, not every LLC needs a business license – it depends on the geographical location of your business as well as its type.

For example, cosmetologists have to get a business license from the Board for Barbers & Cosmetology. Moreover, cities and counties have specific rules and licensure laws. Therefore, you have to check whether you need any licenses to operate your business in the area or not.

It is a safe option to hire a professional to do this for you so that you can rest assured that you have all/any federal, state, or local permits to do business in Virginia.

For federal licenses, you can check out the US Small Business Administration website. To learn about the state licenses and permits, you should check out the Virginia State Corporation Commission’s website. Your local Chamber of Commerce will help you figure out the local licensing requirements.

Virginia Annual Business Registration Fees

Every LLC in Virginia has to file an annual report yearly. Remember the date of your LLC incorporation because it will act as the deadline for your annual business report the next year. You can file the annual report online or on paper. You don’t have to pay any filing fee for the annual report.

However, you have to pay an annual registration fee of $25 to the state. If you miss your filing deadline, you will have to pay a fine. Moreover, if you don’t pay your annual registration fee three months after the deadline, the state of Virginia will dissolve your company.

Moreover, if your company has stocks or shares, you will have to pay annual fees based on the number of shares your LLC is authorized to issue. Nonstock LLCs have to pay a $25 flat registration fee only.

How to form a Virginia LLC yourself

Starting an LLC of your own is an exciting prospect. We all dream of becoming our own boss and run a successful business. Forming an LLC with the state is the first step in that direction. You will have to go through plenty of paperwork and cut through legal red tape to get started, but it will be worth it.

If you know the steps for creating an LLC, the task becomes even easier.

One of the Virginia LLC costs when forming the company yourself is simply the cost of your time! Instead of spending hours going through tedious filing paperwork, why not hire the services of a professional LLC incorporation company to help you out?

By paying no money (IncFile’s free package), or paying a very nominal fee (ZenBusiness’s $49 starter plan), you can get your business up and running in no time.

Therefore, we recommend that you hire ZenBusiness or IncFile to form your Virginia LLC.

Let’s take a look at the few things that you need to know before you start forming your LLC on your own!

  1. Naming your Virginia LLC

The first thing you have to do is find the perfect name for your LLC. A well-chosen name will help you attract clients and increase the popularity of your business. Apart from choosing a catchy name, you have to make sure it fulfills the legal criteria as well.

You have to choose a one-of-a-kind name since Virginia law doesn’t allow duplicate names of LLCs. Check for the name availability by going through Virginia’s business database. Moreover, your business name must include a particular version of Limited Liability Corporation, such as LLC, L.L.C, Ltd., Co., etc.

Moreover, you can’t add certain words in your business’s name. Check out the rules for business names on Virginia’s Corporate Commission website. You have the choice of reserving the name beforehand, which we have already mentioned above.

  1. Choosing a Registered Agent

Once you have decided on a name, you need to choose a registered agent for your business. A registered agent is a person who will receive legal documents from the state on the behalf of your LLC. You can become your own registered agent, but we highly recommend that you use a professional service like Northwest Registered Agent to take care of this for you.

  1. Filing your Articles of Organization

After you have selected your business name and registered agent, you have to file your articles of organization with the state. You have to get the LLC filing form and fill in the relevant information. You can file the documents online or send them through the mail. In both cases, you will have to pay a $100 filing fee.

If you are opting for paper filing, you will have to send the fees via a check to the State Corporation Commission. In case of online filing, you can pay through e-check or credit card.

  1. Creating a Business Operating Agreement

Even though you are not obligated to have a business operating agreement for your LLC, it is a good place to start after you file your documents with the state. It will help safeguard and protect your company against any legal liabilities.

An LLC operating agreement will set out the precise rules which your company will follow along with details of the company’s ownership structure. With the help of an operating agreement, you can avoid any future conflicts.

LLC incorporation services either give you a standard operating agreement as part of their packages or separately for nominal fees.

  1. Getting an EIN

The last step to acquire an EIN for your LLC. If your LLC has 2 or more members, then you need an EIN. You can apply for one on the IRS’s website and get one free of cost. However, if you don’t want to get lost in the legal jargon and paperwork, LLC incorporation services such as ZenBusiness take care of acquiring an EIN for your LLC.

Costs to Start a Virginia LLC: Conclusion

To get your LLC up and running in the state of Virginia, you have to pay a $100 filing fee. There are a few other expenditures such as registered agent service, operating agreement template, etc. that you have to take care of.

However, we recommend that you should get the help of a professional LLC incorporation company such as ZenBusiness so that you can relax and focus on running your business.

Here’s to your successful business in Virginia!

Frequently Asked Questions

Does the State of Virginia have any publication requirements?

No. If you are forming an LLC in Virginia, you don’t have to publicize the formation. Therefore, you will need publication services that are offered by many LLC incorporation services.

Do I have to submit company bylaws to the state?

No. It is not a legal obligation to submit the bylaws of your company to the State. However, it is necessary that you create a business operating agreement that you can use as a blueprint for your company’s day-to-day operations.

How long will it take to form my LLC in Virginia?

Usually, it takes almost 3-5 business days to process your articles of organization. However, if you want, you can get same-day or next-day processing by paying an expediting fee.

Does the State of Virginia allow the formation of a Series LLC?

Yes, if you want multiple LLCs to operate under a single umbrella of a larger LLC, the State of Virginia gives you the permission to do so.

How can I dissolve an LLC in Virginia?

If you want to dissolve an LLC in Virginia, you have to fill out the Articles of Cancellation and file them with the state. You will have to pay a $25 fee for this.