Compared to starting a corporation, forming a limited liability company (LLC) is relatively inexpensive. However, states fees involved in registering an LLC vary widely. The filing procedure for LLCs in California and Nevada are similar, but filing fees for LLC documents differ. All fees cited are valid as of 2010.
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Name Reservation Costs
Selecting a name for an LLC involves making sure that the name is available. A name cannot be the same or indistinguishable from other businesses. Both California and Nevada offer name reservation services. This allows businesses to secure the name and prevent others from using it while they make preparations to register their company with the state. In Nevada, the fee to reserve a name for a $90 day period is $25. In California, the fee to reserve a name for 60 days is $10.
Registered Agent Costs
Both Nevada and California require LLCs to have a registered agent receive service process documents and state notices on the company’s behalf. In California, a registered agent is referred to as an agent for service of process. The cost of a registered agent depends on several factors. In both states, if the LLC uses someone associated with the company as the registered agent, there may be no cost involved. However, commercial registered agents will charge a fee for their services. Registered agent businesses may charge anywhere from less than $100 to several hundred dollars. The Nevada Secretary of State provides a database of registered agents authorized to do business in the state.
Articles of Organization Registration Costs
In both California and Nevada, the primary document needed to register an LLC with the state to make it a legal entity is called the articles of organization. In California, the document filing fee for mailing or in-person submission is $70. In Nevada, the filing fee for online, mailing or hand delivery is $75.
Additional Document Filing Costs
In California, an LLC is required to file a statement of information within 90 days of filing the articles of organization. The document includes basic information about the LLC and has a filing fee of $20. In Nevada, LLCs receive a document from the state after they register their LLC called the “List of Managers.” The company must return this document within a specified period of time along with a filing fee of $125.
Licenses and Permits
The cost of licenses and permits varies depending on business type and locale. Municipal governments set fees for local licenses of all types of business entities. A business owner can find out the costs of licenses and permits by using a federally-maintained database at Business.gov. The database includes license and permit information for every locale in the United States.
References & Resources
- Nevada Revised Statutes: Name of company: Reservation; injunctive relief
- Nevada Secretary of State: Articles of Organization Limited-Liability Company
- California Secretary of State: Name Reservation Request Form
- California Secretary of State: What is an "agent for service of process" and who can be such an agent?
- California Secretary of State: Limited Liability Company Articles of Organization
- California Secretary of State: Limited Liability Company Filing Tips
- Nevada Secretary of State: Information/Documents Needed to Complete Filing of Online Articles
- Business.gov: Business Licenses and Permits