The Real Cost of Starting a Business in the USA

One of the most common questions from entrepreneurs looking to start a U.S. LLC is: "How much does it actually cost?" The answer depends on which state you choose, which services you use, and the nature of your business. But we can give you a complete, transparent breakdown of every cost involved.

One-Time Formation Costs

State Filing Fee (Articles of Organization)

This is the fee you pay the state to legally create your LLC. It's a one-time cost at formation:

Registered Agent Service

Every LLC needs a registered agent. Professional services cost:

• Budget options: $50-$70/year (adequate for most)
• Mid-range: $100-$150/year (good service + compliance tools)
• Premium: $200-$300+/year (multi-state, enhanced features)

Many formation services include the first year of registered agent service in their package.

EIN Application

Free directly from the IRS. Online for U.S. residents, by fax/mail for non-residents. Third-party EIN services charge $50-$100 but are unnecessary if you're comfortable doing it yourself.

Operating Agreement

• DIY template (free from many sources online)
• Attorney-drafted: $300-$1,500 depending on complexity

Formation Service (Optional)

Instead of doing everything yourself, you can use a formation service that handles the state filing, provides a template operating agreement, and often includes registered agent service:

• Budget formation packages: $0-$99 + state fees
• Mid-range: $149-$299 + state fees
• Premium with attorney review: $500+

One-Time Formation Cost Summary (Wyoming Example)

Annual Ongoing Costs

Annual Report Filing Fee

• Wyoming: ~$60/year
• Delaware: $300/year franchise tax
• Florida: $138/year

Registered Agent Service (Annual Renewal)

$50-$150/year (ongoing)

Business Banking

• Mercury, Relay, Bluevine: $0/month (no monthly fees)
• Traditional banks: $12-$35/month

Accounting Software

• Wave: Free (for simple businesses)
• QuickBooks Simple Start: ~$30/month
• FreshBooks: ~$17-$55/month

Annual Tax Preparation

• Single-member LLC with pass-through income: $200-$500 with a CPA
• Complex LLC with multiple members or transactions: $500-$2,000+

Typical Annual Ongoing Cost Summary (Wyoming LLC)

Additional Costs Depending on Your Business

• Business licenses: Varies by industry and state ($0-$500+/year)
• Domain and website: $15/year (domain) + $0-$300+/year (hosting)
• Business insurance: $500-$5,000+/year depending on industry and coverage
• Employer costs: If you hire employees, add payroll taxes, workers' comp, etc.
• Professional services: Attorney consultations, contractor services

Bottom Line: Is Starting a U.S. LLC Affordable?

Yes — and surprisingly so. For most non-resident entrepreneurs running an online business, the first-year all-in cost of forming and operating a Wyoming LLC is $300-$600. Annual ongoing costs are typically $400-$700/year (not counting your own professional services).

Compare that to the benefits: legal liability protection, access to U.S. business banking, the ability to build business credit, and the credibility of operating as a legitimate U.S. entity — the return on investment is substantial.