Is an Inc or an LLC better for a one-person service business?

An LLC, in most cases. Its profit passes through to the owner's personal return and is taxed once, while an Inc is taxed on profit and again on dividends — the main reason small service businesses file an LLC rather than an Inc.

Why do some websites charge USD 50-200 for an EIN?

Because they are reselling a free number. The IRS issues an EIN online in about 15 minutes at no charge, and it is only required if the LLC has more than one member, the business is a corporation, or certain tax returns must be filed.

Can I use my home address as the registered agent?

You can serve as your own agent, but the address goes on the public record. An individual who lists a home address risks having it harvested and used in scams; a formation service's agent address costs USD 50-300 a year.

How low can I set my S-corporation salary?

Not unreasonably low — and not unreasonably high either. The IRS commonly benchmarks reasonable compensation at roughly 60-100% of what a non-shareholder employee would be paid for the same work.

USD 50-125flat state filing fee in several states

USD 200+yearly paperwork gap between states for the same company

1-100shareholders permitted under an S-corporation election

USD 0cost of an EIN issued by the IRS

Inc vs LLC, priced

Essaminc — What an incorporated company is and how one | essaminc.com

An Inc — a C-corporation — is taxed twice: once on the company's profit and again on dividends to the owner, while an LLC passes its profit through to the members' personal returns and is taxed once. Filing one costs a flat USD 50-125 in several states, roughly USD 70 plus an USD 85-800 yearly entity tax in California, and USD 90 plus a USD 300 minimum franchise tax in Delaware.

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What Inc, LLC and Ltd mean, what each state charges to file, and what the yearly filings cost.

Ledger

The numbers first

USD 0cost of an EIN issued by the IRSThe online application takes about 15 minutes; third-party 'EIN applications' charge USD 50-200 for the identical number.

USD 300Delaware minimum annual franchise taxIt applies to a corporation with up to 10,000 shares, on top of the USD 90 filing fee.

4-6 weekswait for an EIN filed by fax or mailA paper Form SS-4 stretches the federal step from 15 minutes to over a month.

What each filing costs

Published fees and typical service charges for forming and keeping a US company.
Filing or fee	What it covers	Typical cost (USD)	How often
State articles of organization or incorporation	Creates the entity with the Secretary of State	50-125 flat in several states; ~70 in California; 90 in Delaware	Once
California business entity tax	State tax on the entity	85-800	Per year
Delaware franchise tax	State tax on corporations	300 minimum, up to 10,000 shares	Per year
EIN from the IRS	Federal tax identification number	0 — third-party filings charge 50-200	Once
Registered agent	In-state address for legal and tax mail	50-300 with a formation service	Per year
State annual report	Keeps the entity in good standing	0-50, often free	Per year
Formation service package	Files the paperwork and provides the agent	100-500 first year; 25-300 renewals	First year, then per year

Published fees and typical service charges for forming and keeping a US company.

The short answer: an Inc is taxed twice, an LLC once

The difference between an Inc and an LLC is not size or prestige — it is who pays the tax on the profit.

A US C-corporation — the form behind the 'Inc' suffix — is owned by shareholders and taxed twice: once on the company's profit and again on the dividends paid to the owner. An LLC passes its profit straight through to the members' personal returns, so the same dollar is taxed once. That pass-through is the main reason a small service business files an LLC rather than an Inc.

A single-member LLC is taxed as a disregarded entity by default: it files one Form 1040 with a Schedule C rather than a separate entity return. The same LLC can elect to be taxed as a corporation later if the numbers favour it.

Both forms create a separate legal person, which is what the 'limited' in their names refers to; a sole proprietorship has no such separation and its owner simply files a personal return. The full side-by-side of ownership, tax and registration sits on the comparison page at /inc-vs-llc-vs-ltd.

Terms on the form

Registered agent: The address in the state of formation that receives legal and tax correspondence for the company. With a formation service it typically costs USD 50-300 a year; using a home address puts that address on the public record.
EIN: The federal employer identification number issued by the IRS. It is free, takes about 15 minutes online, and is required when an LLC has more than one member, when the business is a corporation, or when certain tax returns must be filed.
Disregarded entity: The default tax status of a single-member LLC: the IRS ignores the entity for tax purposes and the owner files one Form 1040 with Schedule C.
Franchise tax: A yearly state tax for the privilege of being incorporated, separate from income tax. Delaware's minimum is USD 300 a year on a corporation with up to 10,000 shares.
Annual report: A short state filing that keeps the company's details current and its status in good standing. It is often free or USD 0-50.
Reasonable compensation: The salary an S-corporation owner who works in the business must take — neither unreasonably low nor unreasonably high, benchmarked by the IRS at roughly 60-100% of a non-shareholder employee's pay for the same work.

Objections, answered

Is an Inc or an LLC better for a one-person service business?: An LLC, in most cases. Its profit passes through to the owner's personal return and is taxed once, while an Inc is taxed on profit and again on dividends — the main reason small service businesses file an LLC rather than an Inc.
Why do some websites charge USD 50-200 for an EIN?: Because they are reselling a free number. The IRS issues an EIN online in about 15 minutes at no charge, and it is only required if the LLC has more than one member, the business is a corporation, or certain tax returns must be filed.
Can I use my home address as the registered agent?: You can serve as your own agent, but the address goes on the public record. An individual who lists a home address risks having it harvested and used in scams; a formation service's agent address costs USD 50-300 a year.
How low can I set my S-corporation salary?: Not unreasonably low — and not unreasonably high either. The IRS commonly benchmarks reasonable compensation at roughly 60-100% of what a non-shareholder employee would be paid for the same work.

How this guide is compiled

Every figure on this page comes from a source dossier of published state fee schedules and IRS guidance; where states differ, ranges are shown instead of a single invented price. No provider's package pricing is reproduced, because this guide does not sell formation. All amounts are restated in USD as published.

Sources

The figures derive from state Secretary of State fee schedules, Companies House rules and IRS guidance as compiled in the guide's source dossier.