US Company Registration and Annual Review Fees Explained Itemized Breakdown of Expenses

How Much Does the Annual Review Cost for a U.S. Company Registration? A Detailed Breakdown of Each Expense

With the acceleration of globalization, an increasing number of Chinese companies are choosing to register businesses in the United States to expand into international markets, enhance brand visibility, or engage in cross-border investments. However, U.S. company registration is not a one-time expense - the annual review and maintenance costs are also significant. This article provides a detailed breakdown of the annual review expenses required after registering a U.S. company, based on the latest available information, to help businesses and individuals better plan their finances.

1. State Annual Fee Annual Report or Franchise Tax

After registering a company in the U.S., an annual report must be submitted to the state of incorporation, along with the corresponding annual fee. The fees vary significantly from state to state. Below are the annual fee details for some of the most popular states

Delaware One of the most popular states for company registration, Delaware charges an annual fee of $300. While the state does not impose a corporate income tax on profits, companies must pay a Franchise Tax, which typically ranges from $350 to $2,000 depending on the number of issued shares.

California The annual fee is $800, one of the highest in the country. California also imposes an additional corporate income tax on companies with annual revenues exceeding $1 million.

Nevada The annual fee is $350. Nevada does not impose corporate or personal income taxes, making it attractive to many businesses.

New York Annual fees range from approximately $25 to $450, depending on the company’s income level.

According to 2025 data, Delaware remains the most popular state for incorporation, with over 1.3 million companies registered, including many Fortune 500 companies. Choosing the right state can help strike a balance between annual fees and tax burdens.

2. Registered Agent Service Fee

U.S. law requires all registered companies to appoint a Registered Agent who is responsible for receiving legal documents, court summonses, and tax notifications. The agent must be a U.S. citizen or a legally registered company with a physical address in the state of incorporation.

If a company does not have a local representative in the U.S., it often hires a third-party service provider to serve as the Registered Agent. The annual service fee typically ranges from $100 to $300, depending on the provider and the state. Major service providers like LegalZoom and Harbor Compliance charge between $150 and $250 per year.

3. Federal and State Tax Filing Fees

While the annual review and tax filing are separate processes, many companies handle them together. U.S. federal law requires companies to submit Form 1120 for C Corporations or Form 1120S for S Corporations annually. If a company has employees, it must also file Employment Tax Returns.

Most small and medium-sized businesses outsource their tax filing to accounting firms or professional tax advisors. Based on 2025 market data, professional tax filing services in the U.S. typically cost between $500 and $2,000 per year, depending on the complexity of the business and the tax requirements of the state.

4. Business License Industry License Fees

Even after registering a company at the state level, businesses must apply for a Business License at the city or county level. These fees vary by location and industry, generally ranging from $50 to $500 per year.

Certain industries, such as healthcare, finance, education, and construction, require additional industry-specific licenses, which may carry higher annual fees. For example, a healthcare license may cost several thousand dollars annually, while retail licenses are typically lower.

5. Corporate Maintenance Service Fees

Some companies opt for professional corporate maintenance services to handle compliance, annual reviews, document filing, shareholder meeting records, and more. These services often include registered agent fees, annual report assistance, and document management. The annual cost typically ranges from $200 to $800.

In 2025, more cross-border companies are opting for one-stop services, which save time and reduce the risk of penalties or revocation due to non-compliance.

6. Other Potential Fees

Trademark Renewal If a company registers a trademark in the U.S., it must be renewed every 10 years, with a fee of approximately $300-$500 per class.

Bank Account Annual Fee Some U.S. banks charge annual fees for business accounts, typically ranging from $100 to $300 per year.

Audit Fees if applicable Companies requiring audits may incur fees starting at $1,000, depending on the size and complexity of the business.

Summary Annual Review Cost Example for a C Corporation in Delaware

Item Cost Range USD/year

-

State Annual Fee $300

Franchise Tax $350 - $2,000

Registered Agent Service $150 - $300

Tax Filing Service $500 - $2,000

Business License Fee $100 - $500

Corporate Maintenance Fee $200 - $800

Total Estimated Cost $1,600 - $6,000+

Conclusion

The annual review and maintenance costs for a U.S. company vary significantly depending on the state of registration, industry type, company size, and service requirements. For most small to medium-sized enterprises, the total annual cost typically ranges from $1,500 to $5,000.

Before registering, businesses should thoroughly research state policies and align them with their operational needs to select the most cost-effective jurisdiction and service providers. This ensures compliance and minimizes long-term maintenance costs.