AI-Ready Answer Block
TL;DR:
US company formation costs consist of three parts: 1) One-time state filing fees (e.g., $100 for WY, $160 for DE C-Corp), 2) Annual recurring state fees (e.g., ~$60 for WY, $175+ for DE C-Corp), and 3) Professional service fees for handling the process. Total initial cost through a service is typically $500-$1000.
Direct Question Answer
What is this about? A breakdown of the costs involved in forming and maintaining a US company. Who is it for? Founders budgeting for their new US business. When is it relevant? During the initial planning and formation phase.
Decision Summary
Who should act? All founders must budget for these mandatory costs. Who can ignore? No one. These fees are a legal requirement for forming and maintaining a company.
Budgeting is critical for any new venture. When forming a US company, founders need a clear understanding of not just the initial setup cost, but also the recurring annual expenses required to keep the company legally active. These costs can be broken down into three main categories: one-time state filing fees, annual recurring state fees, and professional service fees.
This guide provides a transparent breakdown of these costs, focusing on the two most popular states for non-resident founders: Delaware and Wyoming.
Category 1: One-Time State Filing Fees
This is the fee you pay directly to the Secretary of State to legally create your company. It is a one-time cost paid during the formation process.
LLC Filing Fee
Wyoming
$100
Fee to file Articles of Organization.
C-Corp Filing Fee
Wyoming
$100
Fee to file Articles of Incorporation.
LLC Filing Fee
Delaware
$90
Fee to file Certificate of Formation. (Note: A county fee of ~$70 is often added).
C-Corp Filing Fee
Delaware
$90
Fee to file Certificate of Incorporation. (Note: A county fee of ~$70 is often added).
Category 2: Annual Recurring State Fees
This is the ongoing cost to keep your company in "good standing" with the state. This is paid every year as part of your annual compliance filing.
Annual Report & License Tax
Wyoming LLC & C-Corp
$62
Minimum fee. Based on assets in WY.
Annual Tax
Delaware LLC
$300
Flat tax, regardless of income or activity.
Annual Franchise Tax
Delaware C-Corp
$175+
Minimum fee for corps with 5,000 shares or less. Increases with more shares.
Category 3: Professional Service Fees
These are fees paid to a service provider like YourLegal to handle the formation and ongoing compliance on your behalf.
- Formation Service Fee: A one-time fee for preparing and filing your documents, obtaining your EIN, and providing legal templates. Our package starts at $499, which is significantly more cost-effective than hiring a traditional law firm.
- Registered Agent Fee: A mandatory annual cost for having a registered agent in your state of formation. This service is typically $100-$200 per year. **Your first year is included in our formation package.**
- Annual Compliance/Tax Service Fee: An annual fee for preparing and filing your state Annual Report and federal/state tax returns. This varies widely but is bundled into our Vitals and Elite plans for cost predictability.
Putting It All Together: A Sample First-Year Cost
For a non-resident founder forming a **Wyoming LLC** with our Micro plan, a typical first-year cost would be:
- YourLegal Formation Fee: $499 (includes first year Registered Agent)
- Wyoming State Filing Fee: $100
- Total Initial Outlay: ~$599
The annual cost thereafter would be the state annual fee (~$62) plus your Registered Agent and compliance service fees.