Reply #12: As someone who formed hundreds of LLCs and served as [View All]

the LLC specialist for one of the big corporate law firms, I'm a bit confused by this suggestion. Getting set up as an LLC in the State of Delaware is not particularly costly. In terms of fees for the Secretary of State's office and a registered agent, they are minimal

Here's one example (We used CT Corp and had, obviously, a standing tab with them):

"Limited Liability Company

If you select a Limited Liability Company, Delaware Corporate Agents, Inc. will prepare and file a Certificate of Formation with the Delaware Secretary of State for the State filing fee of $90 USD, plus Delaware Corporate Agents, Inc. Processing Fee of $150 USD that includes our Registered Agent fee for the remainder of the year (until 3/1) at no additional cost, a total cost of just $240 USD. The annual Delaware LLC Tax is $200 USD, which must be paid to the State of Delaware before June 1 of each year. The Franchise Tax is assessed on all Limited Liability Companies formed by 12/31, but is not billed until March 1. Delaware Corporate Agents, Inc. registered agent fee is $125 USD which will be charged to your credit card beginning in March of next year."

There are all kinds of advantages and disadvantages to different sorts of business entities, but I would take formation costs to be relatively low on that list, especially for LLC's.