How Much Capital Do You Need to Register a Company in the U.S.? Did You Know?

How Much Capital Is Required to Register a Company in the U.S.?

In today's globalized business environment, the United States remains a top destination for foreign investors and entrepreneurs. Whether you're launching a tech startup, an e-commerce business, or expanding a traditional enterprise, more and more people are choosing to register companies in the U.S. However, for those unfamiliar with the U.S. company registration process, one of the most frequently asked questions is How much capital is actually required to register a company in the U.S.?

While this may seem like a straightforward question, the answer varies significantly depending on the state, the type of business entity chosen, and the company’s operational needs.

1. State-by-State Fee Variations

The U.S. consists of 50 states, each with its own set of regulations and registration fees. The amount you’ll pay largely depends on where you choose to incorporate.

For example, California, a popular hub for technology startups, has relatively high fees. In addition to the state registration fee, businesses must also pay an annual fee and a minimum tax. In contrast, Delaware and Wyoming are widely favored for their simple registration procedures, favorable tax policies, and supportive legal frameworks.

To illustrate, the basic LLC registration fee in Delaware is around $90, while incorporating a C-Corporation costs approximately $89. Additionally, registered agent services-which are required in most states-typically range from $100 to $300 annually.

In California, the LLC registration fee is $70, but businesses must also pay an $800 annual minimum franchise tax. For startups, this recurring cost can be a significant financial burden.

2. Company Structure Affects Registration Cost

The type of legal entity you choose also plays a major role in determining registration costs. Common structures include Limited Liability Companies LLCs, C-Corporations C-Corps, and S-Corporations S-Corps. Each has different legal, tax, and procedural implications.

LLCs are particularly popular among small businesses and individual entrepreneurs due to their flexibility, limited liability protection, and simpler tax treatment. On the other hand, C-Corps are often preferred by companies seeking external investment or planning to go public, as they offer greater flexibility in raising capital, despite higher initial setup costs.

According to recent reports, more and more Chinese cross-border e-commerce sellers are choosing to register LLCs in the U.S. in 2025, especially to access platforms like Amazon and eBay more easily and enhance brand credibility. These businesses often opt for registration in Wyoming or Delaware due to favorable tax policies and lower maintenance costs.

3. Hidden Costs Cannot Be Ignored

Beyond the official registration fees, there are several hidden costs associated with setting up a U.S. company.

Most states require a registered agent-a person or service authorized to receive legal documents on behalf of the company. This service typically costs between $100 and $300 per year. For non-U.S. citizens or residents, hiring a lawyer or a professional registration service may be necessary, with fees ranging from $500 to $2,000.

Additionally, some states, like California, require annual reports and fees. Failure to comply can result in penalties or even suspension of the company’s status.

4. Is Paid-in Capital Required?

Unlike in some other countries, the U.S. generally does not require shareholders to immediately contribute capital upon company formation. This means you don’t need to deposit a large sum into the company’s bank account at the time of registration. Instead, capital can be injected gradually as business needs arise.

This flexible system lowers the barrier to entry and allows startups to launch with minimal upfront costs. However, while there is no mandatory paid-in capital requirement, businesses must still have sufficient working capital to cover operational expenses such as employee salaries, office rent, and equipment purchases.

5. Recent Trends More Overseas Entrepreneurs Opt for Low-cost States

According to third-quarter 2025 business registration data, with the rise of remote work and global e-commerce, more international entrepreneurs-particularly from Asia-are choosing to incorporate in the U.S.

They tend to favor states with low registration costs and favorable tax policies, such as Wyoming and South Dakota. Wyoming, in particular, offers no corporate or personal income tax, making it highly attractive for remote businesses. It also allows for anonymous LLC registration, meaning the names of company members do not need to be publicly disclosed-an appealing feature for those who value privacy.

6. How to Choose the Right State for Registration

When selecting a state to register your business, consider the following factors

1. Tax Policies Does the state impose corporate income tax, sales tax, or personal income tax?

2. Registration and Maintenance Costs Consider the initial filing fee, annual fees, and registered agent charges.

3. Legal Environment Is the state’s corporate law well-developed and business-friendly?

4. Operational Needs Does your company have a physical presence in the U.S.? Where is your customer base located?

For international entrepreneurs without a physical presence in the U.S., registering in Delaware or Wyoming is often recommended due to their streamlined processes, strong legal protections, and favorable tax policies.

Conclusion

The initial capital required to register a U.S. company is not particularly high. In many states, registration fees are under $100. When combined with registered agent fees and other related costs, total startup expenses can typically be kept between $500 and $1,000.

However, the real cost drivers are the ongoing operational needs and the regulatory environment of the chosen state. For entrepreneurs looking to expand into the U.S. market, understanding these registration details and state-level differences is essential for making informed, strategic decisions.