How Much Does It Cost to Register a Company in the U.S. Annually?

How Much Does It Cost to Register a Company in the U.S. Annually?

For many aspiring entrepreneurs, the United States has long represented a land of opportunity. Whether in tech, retail, services, or manufacturing, the U.S. attracts global entrepreneurs with its mature business environment and open market. In recent years, more and more Chinese entrepreneurs have chosen to register companies in the U.S., especially in states like California, Delaware, and Florida. But how much does it actually cost to maintain a U.S. company each year? What specific expenses are involved? Let’s take a closer look.

First, it's important to understand that the U.S. is a federal system, and legal and policy frameworks vary from state to state. Therefore, the cost of registering a company depends heavily on the state of incorporation. Take Delaware, for example-a popular choice among Chinese entrepreneurs due to its business-friendly legal environment, well-developed commercial system, and strong protections for Limited Liability Companies LLCs. According to the latest data for 2025, the basic costs of setting up an LLC in Delaware include the following

1. State Filing Fee

The initial filing fee for registering an LLC in Delaware is approximately $90. While this may seem modest, there is also an annual Delaware Franchise Tax of $300, regardless of whether the company is profitable. This is a fixed expense and can represent a significant burden for small or newly established businesses.

2. Registered Agent Fee

By law, every U.S. company must appoint a registered agent to receive legal documents and notices. Most entrepreneurs choose to use third-party agent services, which typically cost between $100 and $300 per year. In California, fees may be slightly higher, ranging from $200 to $400 annually.

3. EIN Employer Identification Number Application Fee

If the company does not have employees and does not plan to open a U.S. bank account, applying for an EIN is usually free through the IRS. However, if you use a third-party service to assist with the process, fees may range from $50 to $150.

4. Accounting and Tax Services

Operating a company in the U.S. requires annual tax filings, regardless of profitability. For non-resident entrepreneurs, hiring a professional accountant or tax advisor is often essential. Depending on the complexity of the business, annual accounting fees typically range from $1,000 to $3,000 or more.

5. State and Federal Taxes

Once the company becomes profitable, corporate income taxes at both the federal and state levels apply. The federal corporate tax rate is generally 21%, while state rates vary. For example, California imposes a corporate tax rate of 8.84%, with a minimum tax of $850-even if the company is not profitable.

6. Other Potential Fees

These may include business licenses, annual reporting fees, and bank account maintenance charges. In California, for instance, business license fees can range from $50 to $200. Some banks may charge monthly or annual service fees ranging from $100 to $300 for U.S. business accounts.

In summary, the total annual cost to register and maintain a U.S. company typically ranges from $1,000 to $4,000, depending on the state, company size, profitability, and whether professional services are used. For example, an LLC registered in Delaware could cost as little as $600 to $1,000 per year, while in California, the total may easily exceed $2,000 due to higher state taxes and additional fees.

It's also important to note that while the registration process may seem straightforward, compliance requirements in the U.S. are strict. Even small businesses must file annual reports, pay taxes on time, and maintain complete financial records. Failure to comply can result in penalties or even the dissolution of the company.

With the rise of remote work and cross-border e-commerce, more Chinese entrepreneurs are choosing to register U.S. companies to better access international markets. For example, Amazon FBA sellers often incorporate U.S. entities to enhance brand credibility and support localized operations. A U.S. company structure also facilitates fundraising, attracting investment, and accessing capital markets.

Of course, registering a U.S. company isn’t right for everyone. Entrepreneurs should carefully evaluate their business model, financial situation, and long-term strategy before making a decision. If you're only testing the U.S. market or running a small-scale business, you may consider forming a sole proprietorship or partnership to reduce costs. However, these structures generally do not offer limited liability protection and carry higher risks.

Registering a U.S. company is a decision that requires thoughtful planning. While the annual costs may not be prohibitively high, the compliance burden and operational demands should not be underestimated. Before proceeding, it’s advisable to thoroughly understand the legal, tax, and operational requirements-and consult with professionals when necessary-to ensure smooth and compliant business operations.

If you're considering starting a business or expanding into the U.S. market, begin by understanding the basics of the registration process and annual costs. This knowledge will provide a solid foundation for your future business decisions.