Fees for Incorporating Company In USA By State: Understand Your Lowest & Highest Costs to Become a Corporation In Different States 2022

Fees for Incorporating Company In USA By State: Understand Your Costs to Become a Corporation In Different States

 

Company Registration Reasons

If you fail to register a company in the US, you may encounter serious problems. As a result, you may lose profitable business opportunities.

Now, let’s take a look at a few practical examples.

1. Top Legal Framework

Establishing and running a business, you essentially create and accumulate business assets. They can be in the form of money, intellectual property (e.g., trademarks, copyrights, and patents) real estate, etc.

It’s important to determine who will own and manage all of those business assets. It can be, in particular, you (as an individual) or your company (as a legal entity). The second option is way more viable for liability protection, M&A, and other reasons. Company registration allows you to run your business via your own company (corporation or LLC).

To this end, your company needs a legal framework (jurisdiction) where it will exist and operate. One of the best incorporation jurisdictions in the world is the United States. Here, you can be sure that your business assets will be safe. That’s regardless of politics (e.g., who becomes the next President) and economy (e.g., how the annual GDP grows).

If someone treats your business unfairly, you can confidently rely on the American legal protections. In this respect, the U.S. law enforcement and court systems shield your company registration, ownership, and management.

2. Avoiding Offshore Company

Having chosen other jurisdictions, most people holding offshore companies now run into huge problems to open a bank account anywhere in the world.

In contrast, corporate America is certainly way more attractive than offshore company jurisdictions.

Moreover, American companies are generally more reputable than companies from other startup jurisdictions, including those in Europe and Asia.

So, the US should top your company registration wishlist.

3. American vis-a-vis American

Americans usually prefer to deal with American companies, rather than any foreign companies.

So, neither a BVI or Cypriot company in good standing would work as well as a Delaware company formation. That is partly due to the fact that the State of Delaware is one of the best — if not the best — jurisdictions in terms of corporate governance law. Alternatively, a New York company would work great as well.

The rational is clear: Americans prefers to conclude contracts with companies in the States, so that, if something goes wrong, they could resolve a dispute at home, rather than somewhere abroad. That’s why local company registration may be preferable.

Even if a foreign company somehow works, starting a company in the USA would highly likely work much better.

American businesses can effect a due diligence on their counterparts in a state registrar of companies online. For this purpose, it may suffice to check a company name with legal form (i.e., Inc/Corp or LLC).

Checking American companies is fairly straightforward, as you can see here.

4. US Bank Account Only for American Company

If you are a nonresident, then, without an American company, it’s virtually impossible for you to open a business bank account in the US.

The largest American banks normally refuse to open corporate accounts for foreign companies. That is due to bank compliance policies. They usually require American company registration documents.

Without a US bank account, you may be unable to receive payments from Amazon, for example, under the Amazon referral program.

So, company formation in the USA is normally a must in this case as well.

5. US Loan Only for American Company

You may eventually need to borrow money from an American bank.

In this case, the bank would certainly request your US business credit history.

The bank policy may, for instance, require an American company to exist for at least a couple of years.

Absent a US company registration, there would be no credit history at all.

So, the sooner you incorporate your American company, the sooner you create your business credit history.

6. US Investment Only for American Company

Your business may need to get an investment.

For this purpose, American market is the most attractive for you to find business partners and investors.

To finance your startup investment in the US, you need an American company registration again.

This is because the US investors are unwilling to finance a foreign company.

How would they check a company overseas?

Would you feel comfortable about such a due diligence?

In contrast, anyone can get a reliable investor information about the US companies. What investors expect to see, for example, is a Delaware certificate of incorporation or LLC operating agreement. In this case, the company search is just a breeze.

Ultimately, it would be outstanding if you could lead your business up to an IPO at the New York Stock Exchange or Nasdaq. This would capitalize your Delaware corporation business to the maximum.

7. US Immigration

You may wish to invest and work in USA.

In this case, your American company registration and US business immigration would help you a long way.

Specifically, you may get a business visa or work visa.

Having formed a US company, for instance, you may become a US treaty investor and get an E-2 visa (aka a US investor visa).

Alternatively, you may qualify for an L-1 visa (aka intra-company transfer visa).

Finally, you may get an EB-5 visa (aka investment green card in USA).

So, an American company would help you with your US immigration.

This list of practical examples is non-exhaustive.

As you can see, starting your own business in the US prompts you to register a company with Uncle Sam, even if you start a biz for fun.

This especially applies to company registration in USA for non-citizens, particularly those who consider how to start an online business.

It’s interesting that the fees for incorporating vary so much by individual state. For example, to incorporate in Connecticut, it costs $455. That’s on the high end! On the opposite end is Mississippi, at just $50.

Where to Incorporate?

But before we look at the state fees for incorporation, let’s answer that question of where to incorporate.

The first states that people think of to incorporate in are Delaware and Nevada. Delaware has very pro-business laws and regulations, and Nevada has no state corporate income, franchise, or personal income tax. Even though they are both popular choices for incorporating, they aren’t always the best choice.

Here’s why: many states will charge you filing fees for the state you incorporate in, even if you don’t do business there. It can be difficult to open a business bank account in a state where you don’t actually do business.

My suggestion is if you start a business with five or fewer shareholders, incorporate in the state where you have a physical office and/or do the bulk of your business.

What are the Fees for Incorporating a Business in Each State?

This list will give you an idea of what it will cost to incorporate your business as well as how much to form an LLC and the ongoing fees for filing your Annual Report each year. Keep in mind: these fees are subject to change, and are accurate as of March 2015.

Starting Corporation Fees by State

Alabama:

• LLC filing fees: $165; LLC Annual Report; $0
• Incorporation filing fees: $165; Annual Report: $0

Alaska:

• LLC filing fees: $250; LLC Initial Report: $0; LLC Annual Report: $100
• Corporation filing fees: $250; Initial Report: $0; Annual Report: $100

Arizona:

• LLC filing fees: $50; LLC Publication fee: $299 (required); LLC Annual Report: $0
• Incorporation filing fees: $60; Publication fee: $299 (required); Annual Report: $45

Arkansas:

• LLC filing fees: $50; LLC Annual Report: $150
• Incorporation filing fees: $50; Annual Report: $150

California:

• LLC filing fees: $75; LLC Initial Report $20; LLC Annual Report: $20
• Corporation filing fees: $105; Initial Report: $25; Annual Report: $25

Colorado:

• LLC filing fees: $50; LLC Annual Report: $10
• Incorporation filing fees: $50; Annual Report: $10

Connecticut:

• LLC filing fees: $175; LLC Annual Report: $20
• Incorporation filing fees: $455; Annual Report: $100

District of Columbia:

• LLC filing fees: $220; LLC Annual Report: $300
• Incorporation filing fees: $220; Annual Report: $300

Delaware:

• LLC filing fees: $140; LLC Annual Report: $300
• Incorporation filing fees: $140; Annual Report: $225 (based on a minimum number of authorized shares)

Florida:

• LLC filing fees: $155; LLC Annual Report: $138.75
• Incorporation filing fees: $78.75; Annual Report: $150

Georgia:

• LLC filing fees: $100; LLC Annual Report: $50
• Incorporation filing fees: $100 Publication fees: $150; Initial Report: $50; Annual Report: $50

Hawaii:

• LLC filing fees: $50; LLC Annual Report: $15
• Incorporation filing fees: $50; Annual Report: $15

Idaho:

• LLC filing fees: $100; LLC Annual Report: $0
• Corporation filing fees: $101; Annual Report: $0

Illinois:

• LLC filing fees: $500; LLC Annual Report: $305
• Incorporation filing fees: $175; Annual Report: $155

Indiana:

• LLC filing fees: $90; LLC Annual Report: $30
• Incorporation filing fees: $90; Annual Report: $30

Iowa:

• LLC filing fees: $50; LLC Annual Report: $45
• Corporate filing fees: $50; Annual Report: $45

Kansas:

• LLC filing fees: $160; Annual Report: $55
• Incorporation filing fees: $90; Annual Report: $55

Kentucky:

• LLC filing fees: $55; LLC Annual Report: $15
• Corporation filing fees: $55; Annual Report: $15

Louisiana:

• LLC filing fees: $100; LLC Annual Report: $30
• Corporate filing fees: $100; Annual Report: $30

Maine:

• LLC filing fees: $175; Annual Report: $85
• Incorporation filing fees: $145; Annual Report: $85

Maryland:

• LLC filing fees: $155; LLC Annual Report: based on revenue (minimum $300)
• Incorporation fees: $155; Annual Report: based on revenue (minimum $300)

Massachusetts:

• LLC filing fees: $520; Annual Report: $520
• Incorporation filing fees: $295; Annual Report: $135

Michigan:

• LLC filing fees: $50; LLC Annual Report: $25
• Incorporation filing fees: $60; Corporation Annual Report: $25

Minnesota:

• LLC fees: $160; LLC Annual Report: $0
• Incorporation filing fees: $160; Annual Report: $0

Mississippi:

• LLC filing fees: $50; LLC Annual Report: $25
• Corporate filing fees: $50; Annual Report: $25

Missouri:

• LLC filing fees: $50; Annual Report: $0
• Corporation filing fees: $58; Initial Report: $45; Annual Report: $45

Montana:

• LLC filing fees: $70; LLC Annual Report: $15
• Incorporation filing fees: $70; Annual Report: $15

Nebraska:

• LLC filing fees: $120; LLC Publication fees: $150; Annual Report: $26
• Incorporation filing fees: $65; Publication fees: $150; Annual Report: $26

Nevada:

• LLC filing fees: $75; Initial Report: $325; Annual Report: $325
• Incorporation filing fees: $75; Initial Report: $325; Annual Report: $325

New Hampshire:

• LLC filing fees: $100; Annual Report: $100;
• Corporate filing fees: $100; Annual Report: $100

New Jersey:

• LLC filing fees: $125; Annual Report: $50
• Incorporation filing fees: $125; Annual Report: $50

New Mexico:

• LLC filing fees: $50; Annual Report: $0
• Incorporation filing fees: $100; Initial Report: $25; Annual Report: $25

New York:

• LLC filing fees: $210; Annual Report: $9; Publication fees: $425-$1200
• Incorporation filing fees: $145; Annual Report: $9

North Carolina:

• LLC filing fees: $125; Annual Report: $202
• Incorporation filing fees: $125; Annual Report: $20

North Dakota:

• LLC filing fees: $135; Annual Report: $50
• Corporate filing fees: $100; Annual Report: $25

Ohio:

• LLC filing fees: $125; Annual Report: $0
• Incorporation filing fees: $125; Annual Report: $0

Oklahoma:

• LLC filing fees: $104; Annual Report: $25
• Incorporation filing fees: $52; Annual Report: $0

Oregon:

• LLC filing fees: $100; LLC Annual Report: $100
• Incorporation filing fees: $100; Annual Report: $100

Pennsylvania:

• LLC filing fees: $125; Annual Report: $0
• Corporation filing fees: $125; Annual Report: $0 Publication fees: $299

Rhode Island:

• LLC filing fees: $150; LLC Annual Report: $50
• Corporate filing fees: $230; Annual Report: $50

South Carolina:

• LLC filing fees: $110; Annual Report: $0
• Incorporation filing fees: $135; Annual Report: $0; Attorney Signature fees: $100

South Dakota:

• LLC filing fees: $150; LLC Annual Report: $50
• Incorporation filing fees: $150; Annual Report: $50

Tennessee:

• LLC filing fees: $325; LLC Annual Report: $310
• Corporate filing fees: $125; Annual Report: $20

Texas:

• LLC filing fees: $310; LLC Annual Report: (based on gross annual revenue);
• Incorporation filing fees: $310; Annual Report: (based on gross annual revenue)

Utah:

• LLC filing fees: $72; LLC Annual Report: $15
• Incorporation filing fees: $72; Annual Report: $15

Vermont:

• LLC filing fees: $125; Annual Report: $25
• Incorporation filing fees: $125; Annual Report: $35

Virginia:

• LLC filing fees: $104; LLC Annual Report: $50
• Incorporation filing fees: $79; Annual Report: $100

Washington:

• LLC filing fees: $200; Initial Report: $10; Annual Report: $73
• Incorporation filing fees: $200; Initial Report: $10; Annual Report: $73

West Virginia:

• LLC filing fees: $132; LLC Annual Report: $25
• Incorporation filing fees: $82; Annual Report: $25

Wisconsin:

• LLC filing fees: $130; LLC Annual Report: $25
• Corporate filing fees: $100; Annual Report: $40

Wyoming:

• LLC filing fees: $103; LLC Annual Report: $52
• Incorporation filing fees: $103; Annual Report: $52