Incorporating your company in the United States of America is a golden opportunity for your business to flourish in the country and subsequently, the world. With that comes the costs for company formation in the USA and incorporating your company, which can be based on several factors. The USA is abundant with new career opportunities, business relations, and enhancement of one’s career. Hence, whether you form a company in the USA or establish a subsidiary of your parent company from somewhere else in this country will be a good decision for you.
What Are the General Costs of Company Formation in the USA?
The various stages involved in company incorporation and further requirements, as well as the general costs, are as follows:
- Professional Fee: For incorporation, memorandum of association, articles of association, restricted stock purchase agreements, technology transfer agreements, proprietary information agreements, etc. The fee would vary according to the type of company you want to incorporate in the USA.
- Government Fee: To incorporate your company in the USA, you need to file the articles of incorporation or certificate of incorporation with the Secretary of the State. The fee depends on the number of shares, a total set fee, or maybe an amount which includes both. The usual charge is between $100 to $250, which also depends on the state you choose to incorporate your business in.
- Registered Agent Fee: If you are a non-US resident willing to incorporate in the USA, you need to hire a registered agent who has a physical address in the state of incorporation, or is a permanent resident of the United States of America. The fee would cost you around $125. The registered agent will be responsible for accepting and signing all legal documents related to the company on behalf of you. If you are a US resident yourself, then the mentioned fee would not be applicable.
- EIN Application: Generally, the professional who would incorporate your company would also apply for your EIN as an additional service. The charge would depend upon person to person.
- US Physical Address: This is highly subjective, and various plans are available in a range of $20 to $100.
- US Bank Account: A business checking account with a US bank would be the next step after incorporation. Normal banking fees apply.
- Merchant Account: A merchant account should be set up to make the process of sending and receiving payments smoother. Various alternatives can be explored like PayPal, Authorize.Net, etc.
- Business Credit Card: You should apply for a business credit card to categorize your personal spending from your company’s expenses. You can apply for the same after you have incorporated your company in the USA.
- US Phone Numbers: You can avail of a US phone number through various service providers available in the state/country.
Do Costs Have to Be Covered After You Incorporate Your Company in the USA?
Once your company is incorporated in a state in the USA, you need to take care of the below-mentioned costs as well:
- First Year Franchise Tax Prepayment: This kind of tax serves as a privilege borne by the company for doing business in a particular state in the USA and ranges from $800 to $1200. It is not mandatory for all states in the USA to charge this kind of tax. Nevada is one of the tax-free states which makes it lucrative for business owners to set up base.
- Fees for Various Governmental Filings: Unlike most company formations, a corporation (C-Corp or S-Corp) needs to pay an additional $50 to $200 to the Secretary of State. This kind of filing depends upon the type of company incorporated in the United States. We at Water and Shark can advise you with the best kind of company formation for your business type.
- Attorney’s Fees: Although you can go ahead with incorporating your company in the USA without an attorney by applying online, it is always beneficial to hire an experienced one to avoid any mistakes made while filling the form, which can later be held against you in a court of law and your business can be put under legal enquiry. Attorneys aid in avoiding significant mistakes and also build a rapport with you in the long run to aid you through every step in case of any mishap. Attorneys’ fees can accumulate to as much as $5,000. Since they can help you in completing all required forms and documents, alongside working with all the shareholders, you need to raise the payment to an increased amount depending on the number of shareholders in your company.
