Everyone talks about how cheap it is to start a US company. Pay $50โ$500 in state filing fees, get an EIN, open a bank account โ done. What nobody tells you is that the real costs of running a US company start piling up the moment the paperwork clears. I’ve been through this process multiple times, and the gap between “formation cost” and “actual annual cost” still surprises founders every single year.
The dirty secret? Most of the expenses aren’t one-time. They’re recurring, quiet, and spread across enough different vendors that it’s easy to lose track. I’ve talked to dozens of entrepreneurs who budgeted $500 to set up their LLC and ended up spending $4,000โ$6,000 in the first year without making a single dollar of revenue. This article breaks down exactly where that money goes โ and what you can do about it.
The Fees That Never Stop After Formation
The state filing fee is just the cover charge. Once your LLC or C-corp is live, you enter a world of annual obligations that most formation guides conveniently skip. Registered agent services alone run $50โ$300 per year depending on the provider. If you formed in Delaware or Wyoming โ which most non-resident founders do โ you’re paying that fee forever, even if your company earns nothing.
Delaware has a franchise tax that catches people completely off guard. For a C-corp with even a modest number of authorized shares, the Authorized Shares Method can produce a tax bill of $50,000+ if you’re not careful. The Assumed Par Value Capital Method usually brings it down to the $400 minimum, but you have to know to request it. Nobody sends you a tutorial. You just get a bill.
Then there’s the annual report fee โ separate from the franchise tax in most states. Wyoming charges $60. Florida charges $138.75. California hits you with an $800 minimum franchise tax just for existing, regardless of revenue. That one surprises more founders than almost anything else I’ve seen.
Add in a registered address or virtual office ($20โ$150/month), and you’re already at $1,000โ$2,500 per year before you’ve done a single dollar of business. That’s the floor. Most people are paying more.
Hidden Operational Costs Nobody Budgets For
Beyond the government fees, there’s a whole layer of operational costs that feel optional until they’re suddenly not. Banking is the big one. Most major US banks charge monthly maintenance fees of $15โ$30 for business accounts unless you maintain a minimum balance โ often $1,500โ$5,000. Mercury and Relay are popular fee-free alternatives, but they have their own limitations when it comes to wire transfers and international payments.
Accounting and bookkeeping is where the real money disappears. A basic bookkeeping service for a small LLC runs $200โ$500/month. Add a CPA for your annual tax return and you’re looking at another $800โ$2,500 depending on complexity. If you have foreign owners โ which is common when non-US founders form a US entity โ you’re filing Form 5472, and most CPAs charge extra for that. I’ve seen quotes ranging from $500 to $1,500 just for that single form.
Payroll, if you have even one employee or pay yourself a salary through an S-corp election, adds another layer. Gusto and Rippling start at around $40โ$80/month plus per-employee fees. State payroll tax registrations are free but time-consuming, and getting them wrong triggers penalties fast.
Don’t overlook software subscriptions either. By the time you add up your project management tool, email platform, invoicing software, e-signature service, and a basic CRM, you’re easily at $200โ$400/month. These feel like small decisions individually. Collectively, they’re a significant fixed cost.
5 Hidden US Company Costs to Budget for in 2026
- Registered agent service: $50โ$300/year โ don’t default to the most expensive option your formation service upsells
- State franchise tax or annual report fee: varies wildly by state, research yours before you form
- CPA fees including Form 5472 (if foreign-owned): budget at least $1,500โ$3,000/year
- Business banking fees or minimum balance requirements: $180โ$360/year if you’re not using a fee-free neobank
- Payroll software and state payroll registrations: $480โ$960/year even for a solo-owner S-corp
Compliance Costs That Sneak Up on You
Compliance is the category that grows fastest as your company matures. In 2026, the Corporate Transparency Act’s Beneficial Ownership Information (BOI) reporting requirements are fully enforced. Filing itself is free, but if you miss a deadline or get something wrong, the penalties are steep โ up to $591 per day. Most founders are now paying their attorney or a compliance service $100โ$300 to handle this filing just to avoid the risk.
Business licenses are another overlooked cost. Depending on your industry and the states where you operate, you may need federal, state, and local licenses. A simple general business license in some cities costs $75โ$500/year. If you’re in e-commerce selling across multiple states, economic nexus laws mean you may need to register for sales tax in states where you hit certain revenue or transaction thresholds โ each registration can cost $50โ$200, and then you need software like TaxJar or Avalara ($228โ$1,200/year) to manage it.
Legal costs are the wildcard. A one-time operating agreement drafted by an attorney runs $500โ$1,500. Trademark registration through the USPTO starts at $250 per class but attorney fees often bring the total to $1,000โ$2,500. If you ever face a contract dispute, even a simple cease-and-desist letter from your attorney can cost $300โ$800. I budget at least $1,500/year for legal, even in quiet years.
The honest total for a lean, single-member LLC with no employees and modest revenue? Realistically $3,500โ$7,000 per year in fixed and recurring costs. For a C-corp with foreign owners and a small team, you’re closer to $10,000โ$15,000 before payroll. These numbers aren’t meant to scare you โ they’re meant to make sure you plan correctly from day one.
Frequently Asked Questions
What’s the minimum annual cost to maintain a US LLC in 2026?
It depends heavily on the state, but realistically you’re looking at $800โ$2,500/year just for the basics โ registered agent, annual report, and a CPA to file your taxes. Wyoming or New Mexico tend to be the cheapest options for non-residents. California is almost always the most expensive.
Do I really need a registered agent if I have a US address?
If you have a physical US address in the state of formation, you can technically be your own registered agent. That said, it means your name and address appear in public state records, and you need to be available during business hours to receive legal documents. Most people find a $100/year service worth the privacy.
Is a C-corp always more expensive to maintain than an LLC?
Generally, yes. C-corps typically have higher Delaware franchise taxes, more complex accounting requirements, and mandatory corporate formalities like board meetings and minutes. If you’re raising VC funding, the C-corp structure is often required โ but if you’re bootstrapping, an LLC is almost always cheaper to run.
What’s the BOI report and can I file it myself?
The Beneficial Ownership Information report is filed with FinCEN under the Corporate Transparency Act, and yes, you can file it yourself for free at fincen.gov. It just requires basic information about your company’s beneficial owners. The penalties for non-compliance are serious, so if you’re unsure, it’s worth the $100โ$200 to have someone handle it.
How do I avoid overpaying for services as a non-US founder running a US company?
Do your homework before you form โ not after. State selection matters a lot. Avoid formation mills that upsell you on unnecessary add-ons. Use fee-free banking, hire a CPA who specifically works with international founders, and don’t pay for legal retainers until you actually need one. The savings add up to thousands per year.
Running a US company is genuinely one of the best business moves a global entrepreneur can make. The market access, the credibility, the banking infrastructure โ it’s hard to replicate anywhere else. But going in with an unrealistic cost picture is how good businesses quietly bleed cash in their first year before they’ve had a real chance to grow. Know the numbers upfront, budget conservatively, and revisit your cost structure every January.
The good news is that with a bit of planning, most of these costs are predictable and manageable. I’ve written more extensively about structuring and running a US company as a non-resident founder over on my main site, ionplaton.com โ if you’re at the stage of evaluating whether to form, which state to pick, or how to set up operations efficiently in 2026, that’s a good place to start. The founders who succeed aren’t the ones who spend the least โ they’re the ones who know exactly what they’re spending and why.
๐ก About the author: Ion Platon is an entrepreneur and founder specializing in organic content distribution, e-commerce, and U.S. company formation. Learn more at ionplaton.com.