With 50 states in the US and Washington DC, there are also different tax structures and legal entities. This means, there are different laws to follow and fees to pay. There is no single figure for the cost to start a business in the USA. Of course, there are many factors to consider, regulations to abide by, taxes to pay to the state of your choice, and documents to submit. Each business is also unique; therefore, it has distinct requirements and needs. In this article, let’s go over the typical fees you need to keep in mind if you wish to enter the American market.
At a glance
| Requirement | LLC | LLP |
|---|---|---|
| Document filing fees | $50-$80 | $40 – $500 |
| Legal services | $50-$200 (could be higher) | $500 – $700 |
| Registered agents | $100-$300 (annual fee) | $100 – $300 |
| Publication | Depends on choice of publication | Depends on state and choice of publication |
| Annual report filing fee | $25-$50 | $25-$50 |
Please note that if you choose to avail of expedited services, you have to pay higher fees. There may also be more requirements not stated in the table above that you need to accomplish and pay for, such as legal documents for foreign owners.
Cost of starting an LLC in the USA
Depending on the state where you are incorporating your business, it typically costs about $50 – $80 to file your legal documents for your LLC in the USA. This excludes the (on average) $50 you will need to pay for additional legal services. While it is not required to get the services of a lawyer to incorporate your LLC, it’s wise for LLC owners or members to form the company with the guidance of a legal expert.
The LLC’s operating agreement can be drafted by the members themselves for free. However, you might need expert advice when it comes to specifying profit distribution. A local lawyer who can ensure the operating agreement is done correctly may charge between $50 and $200. This could be higher, depending on the expertise and reputation of the lawyer.
Several states may also require LLCs to avail of services from registered agents. Registered agents receive and forward legal documents needed to form the LLC. They typically charge an annual fee of $100 – $300.
There is also an additional fee for publishing your LLC in local newspapers. In some states, newly formed LLCs are required to publish notices on newspapers of general circulation. The cost of this, of course, varies based on the publication’s fees. Plus, an additional fee to submit a certificate of publication to the state.
For maintenance, LLCs in the US (depending on the state) usually pay an annual report filing fee (if necessary) of at least $25, as well as other state taxes. (Related: Tax policies in Delaware; tax policies in Florida)
If you are interested in forming an LLC in the US, Bolder Launch offers LLC formation services in the states of Delaware and Florida. Please contact our Launch Crew to find out the exact cost to start your business in the USA.
Cost of forming an LLP in the USA
Initially, you have to pay between $40 and $500 to start an LLP. The filing fees cover the expenses for the filing of the statement of qualifications and other corporate forms, depending on the requirements of the state.
It is possible to form an LLP in the USA without the help of lawyers; however, it would be best to work with them to make sure all legal documents are correct, and all partners understand the partnership agreement. In addition, attorneys may advise you if LLP is the correct business structure for you. Law firms charge between $500 and $700 to incorporate a company or an LLP.
A registered agent is also required when forming an LLP. Similar to LLCs, the cost for a registered agent falls between $100 – $300 yearly.
Other states, like Florida and New York, may require LLPs to publish in newspapers a notice of formation or a copy of the certificate of registration. The fee depends on the state.
There are also states that charge a prepaid franchise tax for the first year of their incorporation.
Please note that the details mentioned above are not applicable to all states. To get the exact cost to start a business in the USA, kindly visit the official websites of the state where you intend to incorporate. A better alternative is to work with an incorporation agent, like Bolder Launch. Incorporation agents are well-aware of the cost (and changes, if any) to start a business in the USA, the requirements, the process, and the timeline.
If you are interested in entering the American market through a business entity in the states of Delaware or Florida, our Launch Crew will be happy to assist you and give you an estimate of the cost to start a business in the USA. Please contact us for more information.
This guide is part of Company Formation in our Launch Guide.
