Starting a business in the United States is a strategic move for entrepreneurs, startups, and foreign investors due to the country’s strong legal framework, large consumer market, and global credibility. However, one of the most common and critical questions every entrepreneur asks is: What is the cost to start a business in the USA?
The answer depends on several factors, including the entity type, state of incorporation, licensing requirements, tax registrations, compliance obligations, and ongoing operating expenses. This guide provides a complete and realistic cost breakdown of starting a business in the USA, covering both one-time and recurring costs.
Whether you are a U.S. resident or a non-resident entrepreneur, this detailed guide will help you plan your budget accurately and avoid unexpected expenses.
Understanding the Cost to Start a Business in the USA
The cost to start a business in the USA is not a fixed amount. It varies based on:
- Business structure (LLC, C-Corp, S-Corp, Partnership)
- State of registration (Delaware, Wyoming, Texas, California, etc.)
- Industry and regulatory requirements
- Whether you operate online or physically
- Use of professional services (legal, accounting, compliance)
On average, startup costs in the USA range from USD 500 to USD 5,000+, excluding operational expenses such as rent, salaries, and marketing.
Key Components of the Cost to Start a Business in the USA
Let’s break down the costs step by step.
1. Business Structure Selection Costs
Choosing the right business entity directly impacts your tax obligations, compliance requirements, and startup costs.
Common Business Structures in the USA
- Limited Liability Company (LLC)
- C Corporation (C-Corp)
- S Corporation (S-Corp)
- Sole Proprietorship
- Partnership
Cost Impact
There is no federal fee to choose a business structure, but each structure carries different filing, tax, and compliance costs.
| Entity Type | Typical Setup Cost (USD) |
|---|---|
| LLC | $100 – $800 |
| C-Corp | $100 – $1,000 |
| S-Corp | $100 – $1,000 |
| Sole Proprietorship | $0 – $200 |
| Partnership | $100 – $800 |
LLCs and C-Corps are the most popular choices due to liability protection and scalability.
2. State Filing Fees (Incorporation or Registration)
State filing fees are a core component of the cost to start a business in the USA.
Popular States & Filing Costs
| State | LLC Filing Fee | Corporation Filing Fee |
|---|---|---|
| Delaware | $90 | $89 |
| Wyoming | $100 | $100 |
| Texas | $300 | $300 |
| Florida | $125 | $70 |
| California | $70 (+ $800 annual tax) | $100 (+ $800 tax) |
| New York | $200 (+ publication cost) | $125 |
Delaware and Wyoming are preferred for startups and foreign founders due to lower compliance burdens.
3. Registered Agent Cost
Every U.S. business must appoint a registered agent in the state of incorporation.
Registered Agent Cost
- USD 50 – USD 300 per year
- Mandatory recurring expense
This cost is unavoidable and applies to all LLCs and corporations.
4. Business Name Reservation (Optional)
If you want to reserve your business name before incorporation:
- Cost: USD 10 – USD 75
- Optional but useful for planned launches
5. Employer Identification Number (EIN)
An EIN is required for:
- Opening a U.S. bank account
- Hiring employees
- Filing federal taxes
EIN Cost
- Free if applied directly to the IRS
- USD 50 – USD 200 if handled by professionals (common for non-residents)
For foreign founders without an SSN, professional assistance is often necessary.
6. Business Licenses and Permits
Licensing costs vary significantly depending on:
- Business activity
- Location
- Industry regulations
Average Licensing Costs
- Federal licenses: $0 – $1,000
- State licenses: $50 – $500
- Local permits: $25 – $400
Examples:
- E-commerce: minimal or no licensing
- Restaurants: higher licensing and inspection costs
- Financial services: regulated, higher costs
Licensing is a critical part of the cost to start a business in the USA and should never be overlooked.
Licensing and permit requirements vary by industry and location, and can significantly impact the cost to start a business in the USA. Some businesses require only local registrations, while others need federal approvals. Learn more about required business licenses in the USA to avoid compliance risks and penalties.
7. Operating Agreement or Corporate Bylaws
While not always mandatory, these documents are essential for governance and banking.
Cost
- DIY templates: Free – $50
- Professional drafting: $150 – $500
Banks and investors often require these documents.
8. Business Bank Account Setup
Most U.S. banks require:
- EIN
- Formation documents
- Operating agreement or bylaws
Cost
- Account opening: Usually free
- Minimum balance requirements may apply
- Monthly maintenance: $0 – $25
For non-residents, fintech or international banks may charge additional onboarding fees.
Opening a U.S. business bank account is essential for managing finances, receiving payments, and meeting tax compliance requirements. While many banks do not charge setup fees, documentation requirements can affect timelines and costs. Our step-by-step guide explains how to create a business bank account in the USA efficiently.
9. Initial Tax Registrations
Depending on your business model, you may need:
- State sales tax registration
- Payroll tax registration
- Franchise tax registration
Cost
- Registrations: Free – $100
- Professional assistance: $100 – $500
Tax compliance is a long-term cost factor and should be planned early.
Beyond registration, effective tax planning plays a critical role in controlling the long-term cost to start a business in the USA. Strategic structuring can reduce federal and state tax exposure from the first year. Explore proven tax planning strategies for US businesses to optimise compliance and cash flow.
10. Accounting & Bookkeeping Setup
Accounting is not optional in the USA.
Initial Setup Costs
- Accounting software: $20 – $70/month
- Professional setup: $200 – $1,000
Ongoing Costs
- Bookkeeping: $100 – $500/month
- Tax filing: $300 – $2,000 annually
These are essential recurring costs in the cost to start a business in the USA calculation.
11. Annual Compliance & Maintenance Costs
Once registered, businesses must remain compliant.
Common Annual Costs
| Expense | Estimated Cost |
|---|---|
| Annual state report | $50 – $500 |
| Franchise tax | $0 – $800+ |
| Registered agent renewal | $50 – $300 |
| Federal tax filing | $300 – $2,000 |
Ignoring compliance can lead to penalties or dissolution.
12. Cost to Start a Business in the USA for Foreigners
Foreign entrepreneurs face additional costs due to documentation and banking requirements.
Additional Costs for Non-Residents
- EIN application assistance
- U.S. mailing address
- International bank onboarding
- Compliance advisory
Estimated Cost for Foreign Founders
USD 1,200 – USD 5,000+, depending on structure and state
Despite the cost, the USA remains one of the most accessible jurisdictions globally for foreign founders.
13. Optional but Common Startup Costs
These costs depend on your business model:
- Website development: $300 – $3,000
- Domain & hosting: $50 – $200/year
- Branding & logo: $100 – $1,000
- Marketing & advertising: Variable
- Insurance: $300 – $1,500/year
14. Estimated Total Cost to Start a Business in the USA
Typical Cost Ranges
| Business Type | Estimated Startup Cost |
|---|---|
| Solo online business | $500 – $1,500 |
| Small LLC | $1,000 – $3,000 |
| Foreign-owned company | $1,500 – $5,000 |
| Physical business | $3,000 – $10,000+ |
These estimates exclude rent, salaries, and inventory.
15. How to Reduce the Cost to Start a Business in the USA
- Choose the right state
- Avoid unnecessary licenses
- Outsource compliance
- Use professional guidance to avoid penalties
- Plan taxes before incorporation
Strategic planning can reduce startup costs by 30–40%.
16. Why Professional Assistance Matters
Incorrect filings, missed deadlines, or wrong entity selection can increase costs significantly over time. Professional advisors help you:
- Choose the optimal structure
- Minimise tax exposure
- Ensure 100% compliance
- Avoid costly mistakes
How Ease to Compliance Can Help
Ease to Compliance (E2C Assurance Pvt. Ltd.) supports entrepreneurs, startups, and foreign founders at every stage of U.S. business formation and compliance. Our experts simplify complex regulations, reduce unnecessary expenses, and ensure your business remains fully compliant from day one.
Our U.S. business support includes:
- Strategic advisory on choosing the right business structure (LLC, C-Corp, or S-Corp)
- End-to-end company registration across all U.S. states
- EIN application and federal & state tax registrations
- Accounting, bookkeeping, and financial reporting
- Federal and state tax filings, including ongoing compliance
- Dedicated advisory support for non-resident and foreign-owned businesses
We focus on optimising the cost to start a business in the USA, eliminating compliance risks, and enabling you to scale confidently. Contact Ease to Compliance today for professional guidance, transparent pricing, and end-to-end support tailored to your business goals.
Final Thoughts
Understanding the cost to start a business in the USA is essential for budgeting, compliance, and long-term success. While the U.S. offers unmatched business opportunities, careful planning and professional guidance can help you start efficiently and scale confidently.
If you are planning to start a business in the USA, whether as a resident or foreign entrepreneur, the right strategy can save you thousands of dollars and months of effort.
FAQs – Cost to Start a Business in the USA
1. Can I start a business in the USA without visiting the country?
Answer: Yes, non-residents can start a U.S. business remotely by appointing a registered agent and using online filings.
2. Is it cheaper to start a business in the USA as an individual or through a holding company?
Answer: A holding company structure may reduce long-term taxes but usually increases initial setup and compliance costs.
3. Do U.S. startup costs differ for digital-only businesses?
Answer: Yes, digital businesses generally have lower licensing and operational costs compared to physical or regulated businesses.
4. Are there any hidden government fees after business registration?
Answer: Yes, some states impose unexpected costs such as franchise taxes, annual reports, or publication requirements.
5. How early should I budget for U.S. tax filings after incorporation?
Answer: You should budget for tax filings immediately, as federal and state filing obligations apply from the first year, even with no revenue.
