How Much Does It Cost to Incorporate?

The actual cost of incorporating is relatively minimal. Each state has its own fee structure in place for corporations. Typically, costs include:

Filing fees Annual report fees Attorney fees First-year franchise taxes

The size and scope of your business will dictate your legal fees. A law firm specializing in startup businesses will charge in the $500-to-$5,000 range for assisting you, a small business owner, with the incorporation process. The firm can help you fill out the documents necessary for incorporating, explain the process, and review the paperwork you have filled out prior to filing. Legal costs will increase if you have multiple shareholders or complicated shareholder arrangements.

The other cost of incorporating is that of paying first year-franchise taxes. The tax rates vary from state to state, but will usually land somewhere between $800 to $1,000.

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