Want to Start a Company in the U.S.? Know These Reg. Fees!

Want to Register a Company in the U.S.? Knowing These Essential Fees Will Help You Succeed

In recent years, as globalization has accelerated, more and more entrepreneurs and businesses have begun looking toward international markets-especially the United States, the world’s largest economy. Whether it's cross-border e-commerce, tech startups, or service-oriented companies, registering a business in the U.S. has become a growing trend.

However, many aspiring entrepreneurs lack a clear understanding of the associated costs when taking their first steps overseas, often leading to budget shortfalls or operational delays. In fact, due to the U.S. being a federal system, each state has its own regulations regarding company registration. Therefore, having a comprehensive understanding of all relevant fees from the outset is essential to avoid inefficiencies caused by information gaps.

1. Basic Registration Fees

The first step in registering a company in the U.S. is choosing the state of incorporation. While Delaware is popular for its business-friendly environment and mature legal framework, states like California and New York offer unique market advantages due to their large populations. The registration fees vary significantly between states.

For example, in California, the basic costs for forming an LLC include

Filing Fee Approximately $85

Name Reservation Fee $10-$20 optional, if you want to reserve your company name beforehand

Annual Report Fee $800 per year, starting from the second year after formation

In Delaware, the initial cost to register an LLC is around $90. Additionally, the state does not impose sales tax or corporate income tax on companies that do not operate within the state-making it especially attractive to startups and venture capital firms.

If you choose to form a C Corporation C-Corp, the registration and compliance costs may be higher. For instance, in New York, the initial filing fee for a C-Corp is approximately $125, plus additional costs for tax registration.

2. Professional Service Fees Are They Worth It?

For those unfamiliar with the U.S. legal system, handling complex paperwork and legal clauses can be daunting. Many entrepreneurs consider hiring lawyers or professional incorporation agencies to assist with the process. While this adds to the upfront cost, it can save time and reduce risks significantly.

Common professional service fees include

Registered Agent Service Required in most states, costs range from $100 to $300 annually

Legal Consultation Fees Varying from hundreds to thousands of dollars depending on complexity e.g., equity structure design, contract drafting

Accounting and Tax Filing Services Particularly important for non-residents, initial fees typically range from $200 to $500

Platforms such as LegalZoom and Incfile offer one-stop registration services at relatively transparent pricing, making them suitable for small and medium-sized enterprises with limited budgets. However, it's advisable to review user feedback and service terms carefully before committing.

3. Tax and Compliance Costs Ongoing Expenses Not to Be Ignored

Beyond the initial registration, businesses must also account for long-term tax and compliance expenses.

At the federal level, the corporate income tax rate is generally 21%. Each state also imposes its own corporate income tax, typically ranging from 4% to 9%. For example, in California, the maximum corporate tax rate is 8.84%, and even companies with no profit are required to pay a minimum annual tax of $800.

Additionally, certain industries such as food service, healthcare, and education require specific licenses after company registration, costing anywhere from tens to thousands of dollars. For instance, a liquor license in California can cost several thousand dollars depending on the type and location of the business.

If planning to hire employees, employers must also cover costs such as workers’ compensation insurance and Social Security Medicare contributions, which should be factored into financial planning.

4. Bank Account and Operational Support Costs

Opening a local bank account is a crucial step in operating a U.S.-based business. Some banks, particularly digital ones like Mercury and Payoneer, allow remote account opening. However, many traditional banks still require in-person verification.

Typical banking fees include

Monthly Maintenance Fees Usually between $10 and $25, though some banks waive this fee if minimum balance requirements are met

Wire Transfer or ACH Fees May apply for domestic or international transfers

Credit/Debit Card Fees Annual fees and transaction charges for business cards

Notably, since 2025, several fintech companies have introduced free or low-cost banking solutions for startups to lower entry barriers. For example, Stripe Atlas offers a full package including company registration, a U.S. bank account, and a Tax Identification Number EIN, primarily targeting tech startups but offering valuable support for international entrepreneurs.

5. Conclusion Smart Budgeting + Professional Help = Efficient Launch

While setting up a company in the U.S. may seem complex, careful budgeting and strategic use of available resources can significantly increase your chances of success. From initial registration and professional services to ongoing tax obligations and operational expenses, every cost should be clearly accounted for in your business plan.

Given current trends, the U.S. remains one of the most attractive markets globally. By understanding these key costs, entrepreneurs can better manage their finances and gain a competitive edge. Instead of trial-and-error, smart planning ensures every dollar spent delivers real value.