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Comprehensive Analysis of American Companies: How Much Does It Cost to Register a Company in the USA?

You might think that registering a company in the USA is a complicated task and wonder if non-Americans can register a US company or if you need to be physically present in the USA to do so.

In fact, it’s not that complicated. You don’t need to be a US citizen or hold a green card to register a US company. Regardless of nationality and identity, anyone can register a company in the USA, and it doesn’t necessarily require being physically present in the USA; you can apply online. Most Chinese people choose to register a US company through a ‘Registered Agent Service’.

Why Register a US Company

When engaging in cross-border e-commerce and foreign trade, you may find that many platforms impose numerous restrictions on mainland Chinese companies. Many platforms set various restrictive conditions for account registration based on the company’s country of origin, and some platforms even explicitly restrict or do not allow registration by mainland Chinese companies. Examples include Stripe, Shopify Payment, Wayfair, TikTok US, etc.

Moreover, you will find that registering a local company on US e-commerce platforms, essentially a domestic store, gives you much higher authority, allowing for more operations and applications for more categories.

When I first started my independent website, I found that mainland companies couldn’t register with Stripe, and PayPal accounts registered by mainland companies were unstable and easily banned. Therefore, I decided to register a US company to operate my independent site and conveniently registered a local Amazon store with the US company.

I found that using a US company to register on Amazon has inherent advantages. The account suspension rate for US companies is the lowest, less than 1%, while other companies can be as high as 20%. The application time for an Amazon account is shorter, easier to pass the review, and you can apply for categories that Chinese companies cannot sell, such as jewelry. This is considered preferential treatment for local companies, and customers have more trust in US companies, with platform policies also favoring local businesses.

How Much Does It Cost to Register a US Company

The cost of registering a US company is much cheaper than most people imagine, but you need to consider the ongoing maintenance and tax compliance costs after registration.

State Government Registration Fees

The fees for registering a company in the USA vary by state. These fees are usually determined by the type of company (e.g., Limited Liability Company LLC or Corporation C-Corp) and the specific policies of the state. Below is information on registration fees for some states, comparing the highest and lowest costs:

  • Delaware: The registration fee for LLCs and C-Corps is generally $90 (application fee).
  • California: The registration fee for LLCs is $70, and for C-Corps, it’s $100.
  • New York: The registration fee for LLCs is $200, and for C-Corps, it depends on the company’s stock structure, usually starting at $125.
  • Nevada: The registration fee for LLCs and C-Corps is $75, but with the addition of a business license application fee and first-year permit fee, the total cost can reach $425 or more.
  • Florida: The registration fee for LLCs is $125, and for C-Corps, it’s $70.
  • Texas: The registration fee for LLCs and C-Corps is $300.
  • Kentucky: The registration fee for LLCs is only $40, one of the lowest in the USA.
  • Colorado: The registration fee for LLCs and C-Corps is $50.
  • Wyoming: The registration fee for LLCs and C-Corps is $100.

Registered Agent Service Fees

US government regulations require a registered agent residing in the state during the company formation process. This agent must have a physical address in the registration state (PO Box addresses are not accepted).

Why You Need a Registered Agent:

  1. Most US states require a registered agent for company formation;

  2. Protect the company’s privacy, as the registered agent’s address/name is public;

  3. For companies without a physical or fixed office address, a registered agent is needed to receive important documents, ensuring the company does not miss important tax, litigation, or judgment information.

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Here, I recommend Northwest Registered Agent, the lowest-priced and most reputable agent service provider in the USA. You can register a US LLC for as low as $114 (including state registration fees), and it also includes one year of business address service, so you don’t need to get a physical address. Additionally, it includes one year of registered agent service, etc. I’ve written about the registration process before, so you can check it out.

However, this DIY registration method has higher annual maintenance costs, with the second-year registered agent service fee being $125. Moreover, Northwest only provides English support, which can be challenging for readers not proficient in English.

Suitable for:

  • Entrepreneurs looking to register a US company at the lowest cost
  • Users who can handle English communication and documentation
  • Those who do not require additional Chinese consultation and compliance services

EIN Fees

In the USA, every registered company needs a Federal Tax ID (EIN). It is crucial to apply for an EIN as soon as the company is established, as it affects the company’s normal operations.

Employer Identification Number (EIN): A number used by the US Internal Revenue Service to identify each company’s tax obligations. After registering a US company, every company must apply for an EIN, which is unique and necessary for actual business operations and tax reporting in the USA. This tax identification number is used to identify US companies. An EIN is one of the materials required for opening a company bank account and future tax reporting.

Although Northwest is the cheapest for company registration, their EIN application price is very high, at $200, and it takes 2-3 months. I do not recommend it! I found many EIN registration services online, with prices ranging from $10 to $200, but there are many scams, promising 1-3 business days for EIN, but it actually takes 1-2 months.

BOI (Beneficial Ownership Information) Compliance Filing Fees

The BOI (Beneficial Ownership Information) filing policy is established under the Corporate Transparency Act (CTA) and will be implemented starting January 1, 2024. From this date, all LLCs, Corporations, and other qualifying entities registered in the USA must submit beneficial ownership information to the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) within 30 days of company registration. I found many online, and the filing fee is generally around $50.

In summary, the registration cost including state government fees, EIN fees, and BOI filing fees is approximately $360, which is still quite high! Moreover, it’s not handled by the same provider, making management difficult.

Here, I recommend the agency I use - ingstart , which provides full Chinese support and professional guidance tailored to the needs of Chinese cross-border entrepreneurs. Register a complete US company for as low as $260, covering company registration and registered agent services, US company address usage, BOI reporting, obtaining EIN, and including state government LLC application fees .

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Suitable for:

  • Users who need Chinese services and personalized entrepreneurial support
  • Cross-border entrepreneurs seeking ongoing financial and tax compliance consultation
  • Customers pursuing long-term cost transparency and reduced maintenance pressure

I’ve placed the registration link here: Get a discount coupon first, then click to start registration!

https://dashboard.ingstart.com/register?code=99ED12

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