Many Indian business owners want to expand to the US for better growth and global reach. Registering a company in the US looks simple and cheap at first. But the US registration cost often includes hidden fees. These extra costs can cause delays or problems later. This blog will explain those hidden costs to help you plan better.
| Cost Type | What It Is | Estimated Cost | Why It Matters |
| Registered Agent Fees | A person or company in your business state who receives legal and official mail for your company. | $50 to $300 per year | Required by law to keep your business in good standing; important for receiving important documents. |
| State Filing Fees | One-time fee to register your company with the state government officially. | $50 to $500 one time | The first step to start your business legally; varies by state; some states are cheaper for startups. |
| Annual Franchise/Maintenance Fees | Annual fee charged by some states to keep your business active, even if it’s not making money. | $100 to $800 per year | Must be paid every year; missing payments can cause fines or business suspension, especially in Delaware. |
| EIN Application Help | Cost for using a service to get your Employer ID Number from the IRS, often needed for taxes and banks. | $75 to $250 one time | Applying yourself is free, but non-US residents often prefer help to avoid mistakes or delays. |
| US Address or Virtual Office | A physical or virtual US address is needed for official mail and to open a US bank account. | $10 to $100/month | Essential for business legitimacy and to receive important mail without being physically in the US. |
| US Bank Account Setup | Fees to open a US business bank account remotely or by visiting the US. | $200 to $1000 one time | Needed to manage business money; remote setup can be expensive or require a US visit. |
| Legal and Tax Consultation | Hiring professionals to help with US and India business laws and taxes. | $100 to $300 per hour | Important for avoiding legal or tax problems; helps you follow rules correctly in both countries. |
| CPA and Bookkeeping Services | Paying a professional to handle your company’s financial records and tax filings. | $500 to $2000 per year | Required to stay compliant with US tax laws; helps keep your business financials accurate and up-to-date. |
| Sales Tax Registration & Compliance | Registering for and managing sales tax in states where you sell products or services. | $20 to $100 per month | Necessary if you sell in certain states; keeps you from getting fined and ensures you collect the right tax. |
| Currency Conversion & Payment Fees | Fees charged when converting USD to INR and processing payments online. | 2% to 4% per transaction | Reduces your profits; it is important to know how much you lose when moving money internationally. |
Note: US registration costs vary by state (e.g., California, Florida). Cross-border tax advice helps avoid double taxation for Indian founders.
Starting a company in the US is a great idea for Indian entrepreneurs, but the US registration costs include hidden costs that may not seem big at first but can add quickly. Things like agent fees, tax help, and bank setup need proper planning. Knowing these costs early helps avoid surprises later. Always talk to EbizFiling experts and make a full budget before you start.
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1. What is the actual registration cost in states like Delaware or California?
While Delaware charges around $90 for LLC registration, California has a $70 filing fee plus an $800 annual franchise tax. These state-specific costs add up quickly.
2. Are Indian founders required to pay annual maintenance fees in the US?
Yes, most US states charge an annual fee like franchise tax. For example, Delaware LLCs must pay $300 every year to stay compliant, even with zero revenue.
3. Can I skip the registered agent and use my email for legal notices?
No, every US company must appoint a registered agent with a physical US address. Email alone doesn’t meet legal compliance under state laws.
4. Does opening a US bank account cost extra if I don’t live in the US?
Yes, remote bank setups can cost anywhere from $200 to $1000, especially if you use a third-party service or need to travel for in-person verification.
5. Can hidden costs increase my startup budget beyond the basic filing fee?
Absolutely. Once you add agent fees, tax registration, CPA support, and virtual office charges, your total cost can easily go beyond $1000 to $1500.
6. Do I need a separate EIN for each state I register in?
No, one EIN is enough for your business, but each state may require separate tax registrations or permits depending on where you operate.
7. Do some states have extra fees beyond the registration cost?
Yes, states like New York require publication fees, and California has high annual taxes. These state-specific rules affect your total registration cost.
8. Why is a US virtual office or address important for Indian founders?
A US address is needed to open a US bank account, receive official mail, and maintain business credibility, even if you operate remotely.
9. Is legal and tax consultation necessary while registering a US company?
Yes, without proper legal and tax advice, Indian founders risk non-compliance with US and India laws, leading to penalties or double taxation.
10. How does currency conversion affect US company profits for Indian owners?
Converting USD to INR involves 2%–4% transaction fees, which can reduce overall profits.
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