U.S. Company Registration Costs Explained All Expenses Covered in One Article

How Much Does It Cost to Register a Company in the USA? A Clear Overview of All Expenses

In recent years, with the acceleration of globalization and increasing business exchanges between China and the United States, more and more Chinese companies and entrepreneurs have turned their attention to overseas markets-especially the U.S., the world’s largest economy. According to 2025 data, over 15,000 new businesses established by non-U.S. investors were registered in America in the first half of the year alone, with investors from Asia making up a significant portion, particularly in technology, e-commerce, and manufacturing.

For those looking to operate in the U.S., understanding the costs involved in registering a company is a crucial first step. However, due to differences in state laws and tax policies, registration procedures and expenses can vary greatly across states. This article provides a comprehensive breakdown of the various costs associated with setting up a company in the U.S., helping you better plan your budget.

1. Basic Registration Fees State Charges

The first cost you’ll encounter when registering a company in the U.S. is the state filing fee. These fees vary widely depending on the state, generally ranging from $50 to $500. For example, registering an LLC Limited Liability Company in Delaware costs $90 initially. In contrast, California requires not only the basic registration fee but also an annual franchise tax of $800.

Delaware remains a popular choice for business registration due to its business-friendly legal environment and well-established court system, attracting many startups and multinational corporations to establish their headquarters there.

2. Impact of Business Structure on Costs

Common types of U.S. business entities include LLCs Limited Liability Companies, Corporations C Corps or S Corps, and Partnerships. Each structure comes with different registration requirements and costs.

LLCs are often preferred by small to medium-sized businesses due to their relatively simple setup process. On the other hand, C Corporations may involve higher initial and compliance-related costs. For instance, registering a C Corp in New York costs around $125 initially, but could increase if customized articles of incorporation or additional services are required.

3. Professional Service Fees Lawyers and Registered Agents

To ensure compliance with U.S. regulations, many foreign investors choose to hire local attorneys or professional registration agencies, which typically charge between $500 and $2,000 depending on the complexity of the service.

Additionally, U.S. law requires every company to appoint a Registered Agent who is responsible for receiving legal documents and government notices. This service is usually provided by third-party providers at an annual cost of approximately $100 to $300.

4. Federal Tax ID Application EIN

Regardless of the business type, all companies operating in the U.S. must obtain an Employer Identification Number EIN, also known as a Federal Tax ID. This number is essential for tax reporting, opening bank accounts, and other business activities.

The good news is that applying for an EIN is completely free and can be done online through the IRS website.

5. Business Licenses and Industry Permits

Registering a company is just one part of starting a business in the U.S. You will also need to apply for a Business License based on the city or county where your company operates. These licenses typically cost between $50 and $400, depending on location and industry.

Certain regulated industries such as healthcare, food services, and finance may require additional licensing, which can cost several thousand dollars.

6. Accounting and Compliance Costs

Beyond initial setup, ongoing financial management and tax compliance represent ongoing expenses. Many businesses hire accountants or use accounting software to manage bookkeeping and tax filings. These services typically cost between $1,000 and $5,000 annually, depending on the size and transaction volume of the business.

7. Other Potential Expenses

There are also other potential costs to consider. For example, if you plan to hire employees, you will need to contribute to their Social Security and Medicare insurance, which are shared between employer and employee.

Additionally, office rental, insurance, and marketing expenses should also be included in your overall budget.

Summary

Overall, the total cost of registering a company in the U.S. typically ranges from $1,000 to $5,000, depending on factors such as the state of registration, business structure, whether professional services are used, and ongoing compliance costs.

For Chinese companies venturing into the U.S. market for the first time, careful budget planning, selecting the right state and business structure, and leveraging professional resources can help control costs and improve operational efficiency.

By evaluating your needs and using expert support, establishing a U.S. company is no longer out of reach. We hope this article provides you with a clear understanding of the costs involved and helps you take a confident first step into the global marketplace.