Forming a business in the US is a complex process with specific requirements that vary depending on your state of incorporation, your corporate structure (e.g., corporation, LLC), and the type of business you’re conducting. Initial filing fees to form a business also vary by state, ranging from $50 to $520, depending on where you are filing.

This guide will cover the fees and costs associated with company formation in the US, including the filing fees and annual report fees for each state.

What’s in this article?

• How much does it cost to incorporate?
  
• Company formation fees by state
  

How much does it cost to incorporate?

The total cost to incorporate a business can range from a few hundred dollars to several thousand dollars, depending on your location and which services you opt for during the incorporation process. Filing for incorporation on your own is the most cost-effective option, but that requires more time and knowledge of the process. Hiring professional help such as attorneys (for legal compliance advice) or accountants (for tax preparation and filing) introduces additional costs, but it simplifies the process.

Here are the basic costs associated with company formation:

• Filing fees: Each state has different fees for filing the articles of incorporation.

• Franchise taxes: Some states impose annual franchise taxes, which vary depending on your business’s income.

• Registered agent fees: Every incorporated business needs a registered agent. The cost of this service varies depending on the individual or entity you choose.

• Publication costs: Some states require you to publish a notice of incorporation in a newspaper. The cost of this varies depending on the publication and the location.

Company formation fees by state

Here is a comprehensive list of business formation fees by state in 2024. These fees include the initial filing fee and any annual or biennial report fees required to maintain the LLC. Report fees are annual, except for the following states with biennial renewals: Alaska, Indiana, Iowa, Nebraska, New York, and Washington, D.C. Additional fees might apply for registered agent services, business licenses, and other filings.

These fees are subject to change, so it’s a good idea to check with the respective state’s secretary of state office for the most current information.

How to save money when incorporating a business

While some incorporation fees are unavoidable, it’s possible to lower your business’s costs by handling as much as possible in-house and seeking professional help when necessary. Here are a few key strategies for saving money:

• DIY incorporation: If your business structure is straightforward and you’re comfortable with paperwork, filing the incorporation documents yourself can save you hundreds or even thousands of dollars in legal fees. Online resources and guides are available to help you through the process.

• Compare registered agent services: Registered agent fees vary between providers. Compare prices and services from different companies to find the best deal for your needs.

• Consider forming an LLC: Limited liability companies (LLCs) are often simpler and less expensive to form than corporations, making them a cost-effective option for small businesses.

• Choose the right location: Some locations have lower filing fees and franchise taxes than others. Research different places to see which ones have the most favorable business environment for your industry and budget. Delaware is a popular choice in the US for its business-friendly laws and low fees, for example.

• Take advantage of online legal services: Online legal services offer affordable packages that can guide you through the incorporation process and provide templates for necessary documents. Some might even have discounts and promotions for new customers. This can be less expensive than hiring an attorney.

• Negotiate professional fees: If you need to hire an attorney or accountant, don’t hesitate to negotiate their fees. Some professionals might offer discounts for startups or small businesses.

• Plan for ongoing costs: While saving on initial incorporation costs is important, make sure to factor in ongoing expenses such as annual report fees, franchise taxes, and registered agent fees.