Cheap to form, costly to maintain
Company Setup & Running Costs in the United States
Forming a US company costs very little. Running one compliantly across several states does not.
GCC business setup specialists
Budget per state, not per company
Headline US formation prices are genuinely low, which is why so many foreign owners are caught out by year two. The recurring cost is a function of how many states you are registered in: each wants an annual report and fee, each needs a registered agent, some levy franchise tax, and each sales tax registration adds filings. Add the federal information return that foreign-owned entities must file and the real annual figure is a multiple of the formation fee.
- Costs modelled per state across your actual footprint
- Foreign-owner filing obligations priced in, not omitted
- First-year and recurring figures stated separately
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
Black Swan Business Setup Services•Black Swan Business Setup Services•Black Swan Business Setup Services
Where the money goes
Cost components for a US company
Most of it multiplies by state.
| Component | Nature | Multiplies by state? |
|---|---|---|
| Formation filing | One-off state fee | No |
| Registered agent | Annual, per state | Yes |
| Annual report | Annual state filing | Yes |
| Franchise tax | Annual in some states | Yes |
| Sales tax filings | Periodic, per registration | Yes |
| Federal information return | Annual, for foreign-owned entities | No |
State fees, franchise taxes, filing requirements and federal penalties are set by the authorities and change. Your quotation is prepared on current figures with exclusions listed. We handle US formation and compliance set-up and co-ordinate with a US tax adviser where advice is needed. We do not give US federal or state tax advice, and any adviser offering US tax conclusions as part of a formation package should be treated with caution.
How we quote
Getting a figure you can budget with
Modelled on your state footprint.
01
Map the footprint
Where you will actually operate, because that determines how many of the recurring costs you will carry.
02
Quote both years
First-year formation total and the recurring annual total, broken down by state so expansion can be modelled.
03
Then proceed
Nothing starts until you have the figure in writing and have agreed it.
For an accurate quote
What affects the price
State count moves it more than anything.
- State of formation
- Entity type
- How many other states you will operate in
- Whether you will have employees, and where
- Whether you will hold inventory, and where
- Whether sales tax registration will be needed
- Whether the entity is foreign owned
- Whether payroll will be run
- Whether bookkeeping is required
- Whether city or county licences apply
- Whether a professional licence is involved
- Planned expansion over two years
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Written quotation before anything begins
- Costs broken down by state
- State fees stated at cost
- Registered agent costs per state
- Franchise tax estimates where applicable
- Federal information return obligations identified
- Exclusions listed explicitly
- Notice before any fee changes
Not included, quoted separately
- State and local fees, paid at cost
- Registered agent annual fees
- Federal and state tax preparation unless quoted
- US tax advice
- Sales tax registration and filings unless quoted
- Payroll processing unless quoted
- Penalties for periods before engagement
- Bank charges
Verify independently
Relevant US authorities
We file directly with these bodies on your behalf.
Secretary of State of the state of formationInternal Revenue ServiceState departments of revenueCounty and city licensing officesRegistered agent in each stateState professional licensing boards
Questions
US setup costs — FAQs
Why is US formation so cheap?
Because the formation filing itself is a simple state filing. The cost arrives annually, and it multiplies with the number of states you register in.
What is franchise tax?
An annual state charge for the privilege of being incorporated or qualified there, calculated differently in each state and unrelated to profit in several of them.
Does being foreign owned add cost?
Yes. Foreign-owned entities face specific federal information reporting with substantial penalties for non-filing, and that preparation is a real annual cost.
Can I keep costs down by forming in one state only?
Only if you genuinely operate in one state. Operating elsewhere without registering creates penalties that cost more than the registration would have.
What is the most underestimated cost?
The annual multiplication across states, followed by professional fees for the federal returns that foreign ownership requires.
Go deeper
More United States services
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At Black Swan Business Setup Services, our mission is simple: to empower entrepreneurs and companies of all sizes to establish and expand their presence in the UAE, Oman, Saudi Arabia, Bahrain, and beyond.
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