What is the cost of forming a business?
Forming a business in California can cost a variety of fees depending on the type of business structure you choose to form. The most common types of business structures in California are Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). For a Sole Proprietorship, the only requirement is to register with the California Secretary of State, which costs $70 for the Statement of Information. If you want to file a Fictitious Business Name Statement (also known as a DBA or Doing Business As), it will cost $59. Partnerships require a Statement of Partnership Authority for $70, and a Fictitious Business Name Statement is also required if needed. For a Corporation, the cost to form depends largely on the size of the company. A large corporation could end up costing hundreds or even thousands of dollars in attorney fees, filing fees, and other business-related costs. However, for a small corporation, it usually costs around $100 for the filing fee as well as the Statement of Information. LLCs require a $70 filing fee, as well as a Statement of Information. You may also need to register the LLC with the Franchise Tax Board, which can cost up to $800 depending on the size of the business. To summarize, the cost of forming a business in California can vary greatly depending on the type of business you choose and the size of the business. It is important to research each type of business structure in order to make the best decision for you and your business.
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