By Fernando Berrocal

Many startup entrepreneurs head straight into their businesses without taking into consideration the costs of their business documentation. However, it's essential to have a clear understanding of the expenses that come along with new business documents. In this article, we'll provide an overview of some common expenses.

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Set up a DBA Name: After you've decided on your business structure, you'll need to figure out how your business will interact with your customers. The most important stage in this procedure is to choose a "Doing Business As" (DBA) name, which is both a legal requirement and a branding exercise. Without needing to create a business, a DBA name allows you to conduct business under a selected name at a low cost. In most states, the DBA name is registered with the Secretary of State or another state office; however, registration may be done at the county level. For registering a name, each county may have its own set of procedures and costs. The cost of obtaining a DBA name ranges from $5 to $100, and the process might take between one to four weeks.

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Limited Liability Company (LLC): You may want to form a limited liability company to establish a wall around your funds so that business responsibilities do not impact your fortune (LLC).  An LLC is a business form that combines the pass-through taxes of a partnership or sole proprietorship with the limited liability of a corporation. Under state law, an LLC is not a corporation. In many countries, it is a legal corporate structure that limits the responsibility of its owners, known as "members." Individuals, businesses, other LLCs, and foreign entities may all be members, and there is no limit to the number of members you can have. In most states, single-member LLCs are also available.

An LLC is founded by registering "Articles of Organization" and other business documents with the state in which it operates. A Certificate of Organization is used in a few states to incorporate an LLC. These must be filed with the Secretary of State in the state where the business will operate. Depending on the state, the cost of this procedure ranges from $50 to $500.

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Partnership: A partnership is a business or commercial relationship between two or more persons. Each partner offers an asset, such as talent, property, money, or work, and shares in the business's gains and losses. A partnership is required to submit yearly reports on income, deductions, gains, losses, and other items related to its activities, but it does not pay income taxes and instead passes them on to its partners. For example, articles of organization are used to create a partnership. Articles of organization are used to create a partnership, and the cost of this process fluctuates from $50 to $500.

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Subchapter C Corporation:  Any corporation that is taxed independently from its owners is known as a Subchapter C corporation, or C-corp. Many businesses, including major corporations like Snowflake, are organized as C-corporations. Prospective shareholders acquire the corporation's capital stock in return for money, property, or both. The rules governing the activities of a C-corporation are often put into legislation, which reduces costs. To form a C-corp, you must file articles of incorporation with the Secretary of State and this procedure can cost anywhere from $25 to $1,000.

Subchapter S Corporation:  Unlike a C-corp, an S-corp doesn't pay corporate income taxes. To prevent double taxation of corporate revenue, S-corps pass through corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. S-corporations are subject to stricter rules than C-corporations. An S-corporation is required to:

• Assume the role of a domestic corporation.
• Have a maximum of 100 stockholders.
• Contain only one class of stock.
  

Similarly to form a C-corp, to form a S Corporation you must file articles of incorporation with the Secretary of State and this can cost from $25 to $1,000.

The License of a Business: Businesses may be required to pay for business licenses in some state or municipal governments. Business licenses are required by several states and municipal governments for all businesses. Depending on the sort of business, the fee might range from $50 to $400 or more.

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Other Permits and Licenses:  As you gather your business documents, you may discover that you need to seek extra licenses or permissions that are particular to your business. Depending on the jurisdiction, the nature and cost of these vary. The range is wide and is likely to be below. The database of the Small Business Administration will inform you what licenses and permissions you require.

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