4 ms·

why so expensive? in the UK it's £13/year (under $20)

rexf 6y ago
Depends what US state you choose. In CA, you pay $800 a year for your LLC. > An $800 annual tax is generally imposed on limited partnerships (LPs), LLCs, ... Source: https://www.ftb.ca.gov/forms/2020/2020-568-booklet.html https://www.ftb.ca.gov/forms/2020/2020-568-booklet.html
- o-__-o 6y ago
  It does depend on the state. I am also including registered agents, physical (mailing address) and digital presence. Depending on the nature of the business, insurance is also included in that cost. I did not include increased accounting costs
55555 6y ago
It can be much cheaper in other good states. $250 to 400 yearly rings a bell for WY, NV, DL
- ronyeh 6y ago
  Only if you live in those states. If you live in and operate out of CA, but incorporate in DE, you end up paying both DE and CA franchise taxes.
- camhart 6y ago
  WY is even less than that--more like $50. $52 if you pay with a credit card. Though you'll need to pay for the registered agent $25 / year. https://sos.wyo.gov/Business/docs/BusinessFees.pdf https://sos.wyo.gov/Business/docs/BusinessFees.pdf https://www.wyomingagents.com/ https://www.wyomingagents.com/ But yes--if you live in another state, you'll need a company in that state regardless.
roofwellhams 6y ago
What about accountants, paperwork, bank account fees... 1000 usd easy per year
alexchamberlain 6y ago
It's going to be more expensive than that to get accounts prepared, right?
- lbriner 6y ago
  For small company accounts in the UK, you can file them yourself. It is not completely easy depending on what you are doing but well within the ability of an engineer, as long as you are keeping the relevant receipts etc. For me, running a company was never expensive, just hassle like sending your annual update to Companies House and understanding the various overlapping communications from HMRC for tax.
  - alexchamberlain 6y ago
    Interesting - I thought all companies had to file electronically with tagged accounts - ie you need some level of an accountant.
    - ectopod 6y ago
      You can file them online yourself. https://www.gov.uk/file-your-company-accounts-and-tax-return https://www.gov.uk/file-your-company-accounts-and-tax-return
    - blibble 6y ago
      if you're a "micro" enterprise (turnover <£500k and fewer than 10 employees) you don't even need to produce a P&L, just a balance sheet it can be done entirely for free on the Government's Companies House site, which generates your accounts, the regulatory statements and also does your tax return takes me about 10 minutes a year, sending the figures to an accountant rather than punching them into the government's website would take longer
h0h0h0h0111 6y ago
Is it even per year? I thought the fee was just upon first registration

rexf 6y ago

Depends what US state you choose. In CA, you pay $800 a year for your LLC. > An $800 annual tax is generally imposed on limited partnerships (LPs), LLCs, ... Source: https://www.ftb.ca.gov/forms/2020/2020-568-booklet.html https://www.ftb.ca.gov/forms/2020/2020-568-booklet.html

o-__-o 6y ago
It does depend on the state. I am also including registered agents, physical (mailing address) and digital presence. Depending on the nature of the business, insurance is also included in that cost. I did not include increased accounting costs

55555 6y ago

It can be much cheaper in other good states. $250 to 400 yearly rings a bell for WY, NV, DL

ronyeh 6y ago
Only if you live in those states. If you live in and operate out of CA, but incorporate in DE, you end up paying both DE and CA franchise taxes.
camhart 6y ago
WY is even less than that--more like $50. $52 if you pay with a credit card. Though you'll need to pay for the registered agent $25 / year. https://sos.wyo.gov/Business/docs/BusinessFees.pdf https://sos.wyo.gov/Business/docs/BusinessFees.pdf https://www.wyomingagents.com/ https://www.wyomingagents.com/ But yes--if you live in another state, you'll need a company in that state regardless.

roofwellhams 6y ago

What about accountants, paperwork, bank account fees... 1000 usd easy per year

alexchamberlain 6y ago

It's going to be more expensive than that to get accounts prepared, right?

lbriner 6y ago
For small company accounts in the UK, you can file them yourself. It is not completely easy depending on what you are doing but well within the ability of an engineer, as long as you are keeping the relevant receipts etc. For me, running a company was never expensive, just hassle like sending your annual update to Companies House and understanding the various overlapping communications from HMRC for tax.
- alexchamberlain 6y ago
  Interesting - I thought all companies had to file electronically with tagged accounts - ie you need some level of an accountant.
  - ectopod 6y ago
    You can file them online yourself. https://www.gov.uk/file-your-company-accounts-and-tax-return https://www.gov.uk/file-your-company-accounts-and-tax-return
  - blibble 6y ago
    if you're a "micro" enterprise (turnover <£500k and fewer than 10 employees) you don't even need to produce a P&L, just a balance sheet it can be done entirely for free on the Government's Companies House site, which generates your accounts, the regulatory statements and also does your tax return takes me about 10 minutes a year, sending the figures to an accountant rather than punching them into the government's website would take longer

h0h0h0h0111 6y ago

Is it even per year? I thought the fee was just upon first registration