LLC and Trust Formation Costs: Breaking Down What You Actually Pay #
Most people want to know the total cost before starting. The pricing isn’t complicated but it comes in layers. Setup costs hit once. Ongoing maintenance costs repeat annually. The numbers vary based on whether you’re doing it yourself or paying professionals to handle it properly.
Wyoming state filing fees run around $100 for standard processing. Add another $50-100 if you want expedited processing to get your LLC formed in 24-48 hours instead of waiting a week. The state charges what it charges. Everyone pays the same filing fee regardless of which formation service you use.
Registered agent services cost $50-150 annually depending on the provider and service level. Some formation packages include the first year free, then charge annually after that. The registered agent maintains your Wyoming address, receives legal mail, and keeps you compliant with state requirements. This is a recurring annual cost you’re paying as long as the LLC exists.
Professional formation services that include customized operating agreements typically charge $1,500-3,000 for the complete package. You’re paying for entity formation, EIN registration, a crypto-specific operating agreement with proper digital asset provisions, initial compliance documentation, and coordination with registered agents. The wide price range reflects different service levels and how much customization you’re getting.
DIY formation costs maybe $200-300 total if you file everything yourself and use a generic operating agreement template. You’re saving money but accepting higher risk of documentation gaps and privacy loss. For material cryptocurrency holdings, the professional service cost is worth it to get the structure right from the beginning.
Trust formation adds another layer of cost. Simple revocable living trusts run $1,500-3,000 for professional drafting. Complex irrevocable asset protection trusts with multiple trustees and detailed distribution provisions cost $5,000-10,000 or more. Trust pricing depends on complexity and how much customization your situation requires.
Payment options vary by provider. Most professional formation services accept credit cards, ACH transfers, and wire payments. Some offer payment plans if you’re setting up complex multi-entity structures. The state only accepts specific payment methods for filing fees, usually check or credit card depending on whether you’re filing online or by mail.
Digital Family Office offers formation services with the discount code HALFOFFLLC at digitalfamilyoffice.io for reduced formation costs. This brings professional LLC formation with crypto-specific operating agreements into a more accessible price range while maintaining quality documentation and proper structure.
Ongoing annual costs are predictable once you’re set up. Wyoming requires an annual report with a filing fee around $60-80. Your registered agent charges their annual fee of $50-150. Total annual compliance for the LLC runs $110-230 if you’re handling everything yourself. Add another $500-1,500 if you’re paying someone to prepare and file your annual paperwork.
CPA fees for tax preparation vary based on complexity. A simple single-member LLC with straightforward cryptocurrency transactions might add $500-1,000 to your annual tax prep costs. Active trading with hundreds of transactions or complex DeFi activities could run $2,000-5,000 annually for proper tax reporting. The cryptocurrency tax accounting matters more than the entity filing.
Trust administration costs depend on whether you’re serving as your own trustee or using a professional trustee. Self-administered revocable trusts have minimal ongoing costs beyond updating documents when circumstances change. Professional trustees charge annual fees based on asset value, typically 0.5-1.5% of trust assets annually. For a trust holding $1 million in assets, that’s $5,000-15,000 per year.
Private trust companies reduce ongoing trustee costs while maintaining independent administration. You’re paying formation costs for the trust company entity plus minimal annual administration rather than percentage-based fees on assets. This makes sense at higher asset levels where percentage fees become substantial.
Hidden costs catch people who don’t plan properly. You formed your LLC but now need to foreign qualify it in another state because you’re operating there? That’s another filing fee and annual compliance in a second state. You didn’t fund your trust properly and assets are going through probate anyway? That’s thousands in legal fees and court costs your family is paying.
Amendment costs add up if you’re constantly changing your structure. Every significant amendment to your operating agreement or trust document means legal fees for drafting, notarization costs, and time spent coordinating changes. Get the initial structure right and you’re avoiding frequent amendment expenses.
Cold wallet costs are separate from entity formation. A D’Cent hardware wallet runs $100-200 depending on the model. This is a one-time purchase for physical custody of your cryptocurrency. Budget for it alongside entity formation costs, not as part of legal fees.
Banking and exchange fees aren’t entity costs but they’re part of operating your LLC. Business bank accounts might have monthly fees unless you maintain minimum balances. Some exchanges charge higher fees for business accounts than personal accounts. Factor these operational costs into your total picture.
The all-in cost for properly structured digital asset protection typically runs $3,000-7,000 upfront including Wyoming LLC formation with crypto-specific operating agreement, revocable living trust, trust funding, cold wallet purchase, and initial year of registered agent service. Ongoing annual costs run $1,000-3,000 including registered agent fees, annual report filing, basic trust administration, and tax preparation.
Compare that to the cost of not having proper structure. Probate costs in most states run 3-7% of estate value. A $2 million cryptocurrency estate going through probate costs your family $60,000-140,000 in legal fees and court costs. Personal liability from an LLC with improper documentation could expose all your assets to creditors. The structure cost is cheap insurance against much larger potential losses.
Volume discounts sometimes apply if you’re setting up multiple entities simultaneously. Forming an LLC and a trust together often costs less than purchasing each service separately. Family packages where you’re setting up structures for multiple family members might qualify for reduced pricing.
Most wealth management firms like Digital Wealth Partners focus on growing your investment portfolio and providing fiduciary guidance on asset allocation. They charge based on assets under management, typically 0.5-1.5% annually. Entity formation and legal structuring are separate services with different fee structures.
Digital Ascension Group coordinates the complete package including entity formation, trust drafting, operating agreement customization, ongoing compliance, and family office services. We’re bundling legal structure with wealth management coordination rather than selling each piece separately. The family office model means you’re paying for comprehensive coordination, not just isolated services.
The cost question people should ask isn’t whether they can afford proper structure. It’s whether they can afford not to have it. You’re protecting six or seven figure cryptocurrency holdings. Spending a few thousand dollars on legitimate legal structure and ongoing compliance is the obvious choice compared to leaving assets exposed or creating probate nightmares for your family.
Budget realistically for both setup and ongoing costs. One-time formation expenses are manageable. The annual compliance and administration costs repeat forever. Make sure you’re comfortable with both before committing to complex structures that require professional administration.
Contact Digital Ascension Group to learn how our family office services can coordinate your complete financial picture.
