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State LLC Costs: Overview State:Filing Fee:Annual Fee: California 75$ 800$ Colorado 50$ 10$ Connecticut 120$ 80$ Delaware 110$ 300$47 more rows
You dont need an LLC to run a small business. However, an LLC can provide many benefits, including liability protection and tax advantages. Structuring your business as an LLC provides flexibility in tax classification.
An LLC may be disregarded as an entity for tax purposes, or it may be taxed as a partnership or a corporation. Even if your LLC has no income, you may be legally required to file taxes. There are other reasons besides legal compliance that you may want to file a tax return for an LLC with no income.
An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets like your vehicle, house, and savings accounts wont be at risk in case your LLC faces bankruptcy or lawsuits.
If maintaining a less formal, more flexible management structure is important for your startup, an LLC may be a good choice. Tax considerations: An LLC is a pass-through entity, meaning profits are passed through to the owners personal income without incurring corporate taxes.

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Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.
Theres no hard and fast rule, says Keren de Zwart, a business attorney who runs Not Your Fathers Lawyer out of Irvine, California, but if your business is netting at least $60K in profits, thats usually a good time to formalize into an LLC or corporation because the tax benefits can really start to be utilized
If your business already earns a profit or if it carries any risk of liability, you should start an LLC immediately. Many folks say you should form an LLC once you earn over $100,000. However, many lawyers insist you start an LLC from the get-go.

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