LLC Questions

[Reece O.]

Hello, I am not yet in a position to fully use the benefits of an LLC. However, I do plan to use one in the future. Would it be wise to go ahead and set one up and start building business credit with a secured credit card? What would be the cost or ongoing fees to do so if the entity had no assets? Does an LLC that is aged have benefits over one newly created? Thanks!

[Bryan O.]

Hi @Reece O.. The cost will vary quite a bit from state to state. In Colorado, it's $50 to set it up, then $10/year to remain in good standing. I think CA is $800 to set up and $800/year. Getting your EIN takes 5 minutes and is free, so don't worry about that. You would have to check what Kentucky charges. I would expect that it is probably fairly inexpensive. I think the same philosophy applies with business credit as with personal: start building it before you need it because it can take years.