Creating a new business can be an exciting experience, but it also comes with an expense. Whether you are considering a new business or if you have already started one, it is important to understand how to avoid new business filing fees.
Creating LLC yourself is cheaper than hiring a lawyer
Creating an LLC yourself is usually cheaper than hiring a lawyer. If you are not sure about the process, there are plenty of resources online to help you. However, you need to make sure you know exactly what you need.
The first step in forming an LLC is to identify the name you want to use. Some states require a newspaper notice of intent to register before you can file articles of organization. Others allow electronic filing. You will also need to create a registered agent. A registered agent is an individual or business that will receive official documents on behalf of your LLC. The person you choose should be able to live in the state where your business is registered.
California formation documents are now $0
Currently, the state of California offers a $0 application for registration. A $5 fee is required for a certified copy, although non-certified versions are available for free. The state offers free online services and accepts mail-in filings. In general, there are two types of companies that can be registered: corporations and limited liability companies. Generally, corporations pay more in taxes than their LLC counterparts, but they have more business protections.
The best way to find out is to use a reputable online service to form your California LLC. They offer a free account that will walk you through the process. You can choose to upload documents in real time or let them do it for you.
Ohio filing fees dropped from $50 to $1 in the fourth quarter
Despite the admons of the statehouse bureaucracy, the oh-so-disciplined State of Ohio is a relatively pleasant place to do business. There is a lot to love about the Buckeye State, and the most important thing to remember is to keep your chin up. The state boasts a plethora of amenities to woo your employees, and the perks keep coming. During this tumultuous time of year, it pays to be on your game. To help out, state legislators have thrown in the budget for free tax prep and filing services. This is all the more reason to do your homework before you file your tax return.
Depending on the state, franchise tax and new business filing fees may vary greatly. Some states require corporations to pay a Franchise Tax Flat Fee for all businesses operating within the state, while others may not. These fees are calculated based on the type of business entity, the state of incorporation and the tax rules within that state.
For example, if a corporation is registered in Louisiana, it must pay a franchise tax for doing business in the state. The corporation must pay the tax even if the business is not profitable.
Depending on the state, businesses may also be required to pay an annual report filing fee, which is due on a single date. Some states require the filing of an initial report for a new business. Other states require an application, which is specific to the business type.
One-time fee waiver
Those who have been seeking a one-time fee waiver for new business filing fees may be disappointed to learn that this particular initiative will not be available anytime soon. The good news is that this may only be temporary. The Department of Finance reports that the Legislature is considering a fee waiver proposal for 2022-23. The administration’s plan would eliminate fees for businesses in the state’s first year of operation. It would also eliminate fees for filing initial business filings.
According to the administration, this one-time fee waiver will help new businesses appreciate the value of one-time filing fee relief. The fees waived would range from a $100 to $70. It would also be an improvement over the previous fee structure. The administration estimates that the waiver would reduce the Business Filing Fund’s revenue by about 45 percent.