How Much Does It Cost to Register a Company in the U.S.? How to Proceed? Common Questions and a Practical Guide to Business Registration

Registering a company in the United States is neither overly complex nor shrouded in mystery-the actual cost and process hinge primarily on three factors which state you choose, what entity type you select, and whether you handle registration yourself or engage a professional service provider. As of 2025, state-level policies remain largely stable; however, Delaware and Wyoming continue to see rising popularity-especially among tech startups and cross-border e-commerce entrepreneurs. In contrast, New York imposes more detailed local compliance requirements, resulting in slightly higher maintenance costs during the first year post-registration. Total out-of-pocket expenses typically range from several hundred dollars to over $2,000, with variability stemming mainly from state filing fees, registered agent services, IRS Employer Identification Number (EIN) application, and subsequent annual report filings.

How much does it cost to register a U.S. company?

Costs fall into three main categories

1. State Filing Fees

Delaware LLC $90

Wyoming LLC $100

California $70 initial filing fee + $800 first-year franchise tax

2. Annual Registered Agent Fee

A physical U.S. address is legally required to receive official legal documents and government correspondence. Reputable service providers charge between $120-$350 per year for this mandatory service.

3. IRS EIN (Employer Identification Number)

Free to obtain directly from the IRS. However, if additional documentation-such as an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN)-requires notarization or certified translation, extra fees of $50-$150 may apply.

⚠️ Note Some low-cost agents advertise “$99 all-inclusive registration,” but these offers often exclude the annual registered agent fee or conceal prepayment of state taxes. Before signing any agreement, carefully verify whether the quoted price covers all statutory expenses for the first year.

How do you register a company in the U.S.?

The procedural path is straightforward-but no step should be skipped

1. Choose Your Entity Type

Limited Liability Company (LLC) is the most commonly selected structure. A C Corporation (Corp) is better suited for businesses planning to raise venture capital or pursue public listing.

2. Select Your State of Formation

You are not required to incorporate in your state of operation. For example, many e-commerce sellers opt for Wyoming due to its lack of state income tax, strong privacy protections, and minimal annual reporting requirements (only address updates needed).

3. Conduct a Name Availability Search Reserve (if applicable)

Use your chosen state’s Secretary of State website to check name availability-free of charge. Some states (e.g., Texas) allow online reservation for up to 120 days.

4. File Organizational Documents

Submit either the Articles of Organization (for LLCs) or Articles of Incorporation (for Corporations), usually via the state’s online portal. Delaware, for instance, typically issues approval within 24 hours.

5. Obtain Your EIN

Apply directly through the IRS website-approval is instantaneous upon completion; no mailing or waiting required.

6. Open a U.S. Business Bank Account

Most banks now support remote account opening for non-residents. Required documents typically include your Certificate of Formation/Organization, EIN confirmation letter, valid passport, and live video verification. While Chase and Bank of America maintain stricter underwriting standards for newly formed LLCs, digital banks like Mercury and Novo offer faster onboarding and greater flexibility.

Frequently Asked Questions (FAQs)

Can I register a U.S. company without a U.S. Social Security Number (SSN) or green card?

Yes. Foreign founders are not required to possess an SSN to form an LLC. When applying for an EIN, you may use your personal passport as identification.

Is tax filing mandatory after registration-even with zero revenue?

Yes. Even if your LLC generates no income, foreign-owned LLCs with >25% ownership held by non-U.S. persons must file IRS Form 5472 annually. Additionally, all LLCs must submit an annual report to their state of formation.

Can I use my Chinese (or other foreign) address as the registered business address?

No. State law mandates a legitimate physical address located within the U.S. The address provided by your registered agent satisfies this legal requirement for official communications and service of process.

How soon can my company begin receiving payments after registration?

Once you have obtained both your EIN and opened a U.S. bank account, you may start accepting funds via platforms such as PayPal and Stripe. However, marketplaces like Amazon and Shopify require additional verification-including uploading your Certificate of Formation and EIN-before enabling payouts.

Practical Tips for Registering a U.S. Business

Don’t prioritize “lowest price” alone. Some agencies use virtual office addresses as registered agent locations. If discovered during a state audit, such arrangements may render your company “Not in Good Standing”-jeopardizing legal protections and banking access.

Default pass-through taxation for LLCs isn’t always optimal. If projected profits are substantial, consider electing corporate taxation by filing IRS Form 8832 to classify your LLC as a C-Corporation-potentially lowering overall effective tax rates.

Wyoming’s zero state income tax has limits. If you maintain employees, physical offices, or significant operational activity in another state (e.g., California), you may trigger “nexus” and become subject to that state’s tax laws-even if incorporated in Wyoming. There’s no escaping tax obligations tied to real economic presence.

Maintain secure records of all key documents. Keep both digital (PDF) and hard-copy backups of foundational filings-including your Certificate of Formation and Operating Agreement. Though the Operating Agreement is not filed with the state, it serves as the definitive internal governance document outlining member rights, responsibilities, profit allocations, and management structure.

The above outlines current mainstream pathways and realistic cost components associated with forming a U.S. company. We hope this information proves helpful to you.