Want to Start a Business in the U.S.? Know These Costs First!

Thinking of Registering a Company in the U.S.? Know These Costs to Be Fully Prepared

In recent years, with the acceleration of globalization and increasingly frequent business exchanges between China and the U.S., more and more Chinese entrepreneurs and investors have turned their attention to the American market. Whether it's to expand business operations, enhance international brand recognition, or seek a better financing environment, registering a U.S. company has become a popular choice for many.

However, before taking this important step, it’s crucial to understand the registration process and associated cost structure-this knowledge is key to ensuring smooth business operations.

1. Basic Types of U.S. Company Structures

When registering a company in the U.S., the first decision involves choosing the legal structure. Common types include

Limited Liability Company LLC Suitable for small to medium-sized businesses, offering flexibility and relatively low tax burdens.

Corporation C Corp or S Corp Ideal for larger companies planning to go public or seeking venture capital funding.

Partnership Appropriate for two or more individuals jointly managing a business.

Branch or Representative Office Designed for companies already operating overseas that wish to establish a U.S. presence.

Each structure comes with different implications for taxation, liability, registration procedures, and costs. Therefore, selecting the right one should align with your specific business needs.

2. Key Cost Components for Company Registration

While each U.S. state may have its own specific requirements, the overall costs typically include the following categories

1. State Filing Fee

This is the most basic expense during registration, collected by the Secretary of State's office in the respective state. For example

In Delaware, a popular state for incorporation, filing an LLC costs around $90, while registering a C Corporation costs $89.

In California, the LLC filing fee is up to $85, plus an annual minimum tax of $800, which can be a significant burden for startups.

2. Registered Agent Fee

U.S. law requires all registered companies to appoint a Registered Agent located in the same state to receive legal documents. If you are not based in the U.S., hiring a professional agent is common, with annual fees ranging from $100 to $300.

3. EIN Application Fee

An Employer Identification Number EIN acts as the company’s unique identifier for tax reporting and opening bank accounts. Applying directly through the IRS website is free, but third-party services may charge a small service fee.

4. Annual Report and Maintenance Fees

Most states require companies to submit annual reports and pay related fees. For example

In New York, the annual report fee for an LLC is $9.

In California, it's $20 per year, in addition to the $800 annual minimum tax regardless of profitability.

5. Accounting and Tax Services

For foreign investors unfamiliar with the U.S. financial system, hiring a professional accountant or tax advisor is often essential. Depending on the company size and scope of services, this can range from several hundred to several thousand dollars annually.

6. Trademark Registration Fee

If you plan to build a brand presence in the U.S., trademark registration is critical. The cost of submitting an application to the United States Patent and Trademark Office USPTO ranges from $250 to $350, depending on the class and method of filing.

3. Other Potential Costs Not to Be Overlooked

Beyond these standard expenses, there are other hidden or less obvious costs

Bank Account Setup Fees Some U.S. banks charge non-residents setup fees or monthly maintenance charges for corporate accounts.

Office Address Rental While not mandatory, having a formal business address enhances credibility, especially when signing contracts or communicating with clients.

Legal Consulting Fees Legal advice is often indispensable for contract drafting, intellectual property protection, and compliance matters.

4. Recent News U.S. Business Environment Continues to Improve

According to a late 2025 report by The Wall Street Journal, the U.S. Department of Commerce announced that foreign direct investment increased by more than 15% over the past year, with particularly strong growth coming from Asia.

Several states have also introduced incentives to attract more foreign businesses

Texas has launched tax breaks for new technology firms.

Florida has simplified the business registration process, improving overall ease of doing business.

Additionally, in early 2025, the U.S. Treasury updated cross-border fund flow regulations, providing greater compliance flexibility and boosting investor confidence.

Conclusion

Registering a company in the U.S. is not inherently difficult, but achieving stable and sustainable operations requires careful financial planning and cost estimation. From initial state fees to ongoing maintenance expenses, every cost factor can impact cash flow and long-term growth.

Before starting the registration process, make sure to fully understand all potential expenditures and create a realistic budget tailored to your situation. Only with clear expectations can you confidently move forward in this land of opportunity.