Last Updated on August 7, 2025 by Hend Ibrahim

When planning to launch a business, understanding the cost of establishing a limited liability company is a key factor in budgeting and decision-making. An LLC is a popular business structure for entrepreneurs due to its flexibility, legal protection, and tax benefits. In this comprehensive blog post, we’ll explore everything related to LLC costs in different regions, including details relevant to forming an LLC in the UAE and the United States, particularly Texas.

What is an LLC?

Before diving into the cost of establishing a limited liability company, it’s essential to understand what an LLC is. An LLC, or Limited Liability Company, is a business structure that combines the liability protection of a corporation with the tax flexibility and simplicity of a partnership. It is one of the most common choices for small to medium businesses in many countries.

Key Features of an LLC

• Limited liability protection for owners (members)
• Pass-through taxation
• Flexible ownership and management structure
• Simple regulatory compliance

These characteristics make an LLC attractive for entrepreneurs across different industries. If you’re wondering what kind of work can you do with an LLC, the answer is: almost any legal business activity—from consulting and e-commerce to construction and media production.

Cost of Establishing a Limited Liability Company

The cost of establishing a limited liability company varies depending on the country, state, or free zone in which the LLC is registered. Let’s examine some of the key factors that determine these costs:

1. Registration Fees

This is the primary upfront cost and varies widely. For example:

• In the UAE: Registration costs in free zones start from AED 8,000 to AED 25,000 depending on the location and services.
• In Texas: The cost of establishing a limited liability company includes a filing fee of approximately $300.

2. Annual Fees and Renewals

LLCs must pay annual maintenance or renewal fees to remain in good standing. These are commonly referred to as LLC annual fees by state, and can range from $50 to $800 depending on the jurisdiction.

3. Operating Agreement Preparation

While not always mandatory, creating an Operating Agreement can cost anywhere from $100 to $1,000 if legal assistance is used.

4. Business License and Permits

Additional local or municipal licenses may be required depending on the business activity, which could cost $50–$500 per license.

5. Name Reservation (Optional)

Some jurisdictions require or recommend reserving your LLC name for a small fee, usually under $50.

6. Registered Agent Services

This service is often mandatory in jurisdictions like the US. Expect to pay around $100–$300 annually.

Cost to Start an LLC in the UAE

In the UAE, the cost of establishing a limited liability company can vary greatly depending on:

• The Emirate (Dubai, Abu Dhabi, etc.)
• Mainland vs. free zone
• Visa quota required
• Office space needs

On average, the cost ranges from AED 15,000 to AED 40,000 for a basic LLC setup. If you’re looking for the cheapest LLC options, certain free zones offer affordable packages with limited services.

UAE Residence and Legal Requirements

To own and operate an LLC in the UAE, at least one partner must hold a valid residence permit or residence visa, which involves additional costs including medical tests, Emirates ID, and visa stamping.

How Much Does an LLC Cost Per Year?

The cost of establishing a limited liability company isn’t just a one-time payment. LLC owners must factor in:

• Annual renewal fees (UAE: AED 7,000–15,000)
• Government levies and economic department charges
• Office rent (if applicable)
• Employee-related expenses (visa, insurance, salary, etc.)

Benefits of LLC Structure

Understanding the cost of establishing a limited liability company is important, but so is recognizing the benefits:

• Personal asset protection
• Professional brand image
• Easier access to funding
• Scalable for future growth

Our Services at Alpha Abu Dhabi

At AlphaBudhabi, we are committed to providing a wide range of services that meet the needs of individuals, entrepreneurs, startups, and large companies. Our most prominent services include:

Company Formation

• Establishing companies within Abu Dhabi and in free zones
• Preparing contracts and commercial licenses
• Providing legal and administrative consultations

Issuing visas and residency permits

• Residence visas for investors, families, and employees
• Issuing and renewing work permits
• Procedures for tourist visas and long-term residency permits

Labor Office Services

• Settling Labor Office Violations
• Updating employment contracts and amending labor status
• Issuing new work permits and renewing existing ones

Immigration and Passport Services

• Assistance in submitting citizenship or golden residency applications
• Immigration and investment consultations in the UAE and abroad
• Issuing and renewing passports for some nationalities

How AlphabuDhabi Can Help

At AlphabuDhabi, we specialize in simplifying the cost of establishing a limited liability company by offering tailored packages and expert guidance. Our services include:

• Free consultations
• Document preparation
• License and visa processing
• Bank account assistance
• Ongoing compliance and renewal support

Contact AlphabuDhabi

Phone: +971561691648
Email: info@alphabudhabi.ae
Website: www.alphabudhabi.ae

Conclusion

The cost of establishing a limited liability company varies depending on the jurisdiction and business needs, but the long-term benefits often outweigh the initial expenses. Whether you are setting up in the UAE or the US, choosing the LLC structure offers flexibility, legal security, and growth potential. AlphabuDhabi is here to ensure your LLC setup journey is smooth, affordable, and aligned with your business goals.

FAQs

What is an LLC and how does it work?

An LLC is a limited liability company that protects owners’ personal assets and allows for flexible taxation and management structures.

What kind of work can you do with an LLC?

LLCs can operate in nearly all industries, including consulting, IT, e-commerce, and real estate.

How much does an LLC cost per year?

Annual fees range from $50 to $800 in the US and AED 7,000–15,000 in the UAE, depending on the location and services required.

Can AlphabuDhabi help with LLC setup?

Yes. AlphabuDhabi provides end-to-end LLC formation services tailored to your business goals and budget.