Cost Calculator AI
Business & StartupLegal & Entity

Business Formation Cost Calculator

Calculate mandatory state filing fees, registered agent expenses, attorney drafting costs, and first-year statutory compliance across LLCs and Corporations.

Calculation Results

Total Formation & Year-One Legal Formula

Year-One Legal Cost = (State Filing Fee + Publication / Notary) + (Attorney Fees + Corporate Kit) + (Registered Agent + Annual Franchise Tax)
  • Mandatory State Fees: Secretary of State articles of organization/incorporation filing and publication notices.
  • Professional Services: Attorney customized operating agreement/bylaws drafting and corporate kit setup.
  • First-Year Compliance: Annual registered agent representation and mandatory state franchise or privilege taxes.

Step-by-Step Worked Example

Scenario: Forming an LLC in a state with a $300 filing fee, $500 attorney drafting fee, $150 registered agent, and $800 state franchise tax

Calculation Steps:

  1. Mandatory Formation Fees = $300 + $50 = $350
  2. Professional Legal Services = $500 + $100 = $600
  3. Initial Formation Total = $350 + $600 = $950
  4. First-Year Compliance Fees = $150 + $800 = $950
  5. Total Year-One Legal Cost = $950 + $950 = $1,900
Result: Total initial formation cost is $950, and total first-year entity legal and compliance expenses total $1,900.

How to Use This Calculator

  1. 1Select your target legal structure (LLC, S-Corporation, C-Corporation, or Sole Proprietorship).
  2. 2Enter your state Secretary of State filing fee (fees range from $50 in KY/CO to $500+ in MA/IL).
  3. 3Add optional attorney drafting, registered agent, and annual franchise tax requirements.

Assumptions & Limitations

  • State filing fees are based on user input since statutory fees vary dramatically by state.
  • Federal EIN acquisition through the IRS website is free; commercial service fees can be entered if used.

Frequently Asked Questions

Why do LLC formation costs vary so much between states?

Each state legislature sets its own statutory fees. For example, Kentucky charges $50, while Massachusetts charges $500, and California levies an annual $800 minimum franchise tax.

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