Starting a business in the United States is a dream for many aspiring entrepreneurs. But one of the most common questions that comes up is: how much does it cost to start a company in the USA? The answer depends on several factors, including your business type, location, legal structure, and whether or not you hire employees. In this guide, we’ll break down the typical costs for first-time business owners to help you plan your startup budget more effectively.
1. Business Formation Costs
The first step in starting a business in the U.S. is to legally form the entity. Most entrepreneurs choose between a Limited Liability Company (LLC) or a C-Corporation, depending on their goals.
LLC Formation Fees
Each state has its own filing fees for LLCs. These usually range from $50 to $500.
Examples:
- Delaware: $90
- California: $70 + $800 franchise tax
- Texas: $300
Corporation Filing Fees
For C-Corps, fees also vary by state but generally fall between $100 and $500.
📌 You can check your state’s fees via the National Association of Secretaries of State.
2. Registered Agent Services
U.S. businesses must have a registered agent with a physical address in the state of formation to receive legal notices. If you’re not based in the U.S., you’ll need to hire a professional service.
Cost: $100–$300 annually.
3. Employer Identification Number (EIN)
To open a U.S. business bank account and pay taxes, you’ll need an EIN from the IRS. It’s free if you apply directly.
📌 Apply here: Get an EIN – IRS
Cost: $0 (unless you pay a third-party service).
4. Business Licenses and Permits
Depending on your business type and location, you may need local, state, or federal licenses.
Cost Range: $50–$1,000+
Some industries (like food services or transportation) have higher compliance costs. Always check with your city or county clerk’s office to understand the exact requirements.
5. Business Bank Account Setup
Opening a business bank account is essential for separating personal and business finances. While many banks offer free business accounts, some require a minimum deposit or monthly fee.
Typical Costs:
- Opening deposit: $50–$1,000
- Monthly fees: $0–$25 (waived with minimum balance)
6. Website and Branding
In today’s digital-first world, a professional online presence is essential.
- Domain name: $10–$20/year
- Website hosting: $50–$200/year
- Web design: DIY or $500–$5,000+
- Logo and branding: $100–$1,000
7. Legal and Accounting Fees
Hiring professionals can prevent costly mistakes down the road.
- Attorney (for business formation or contracts): $500–$3,000+
- CPA or accountant: $100–$300/hour
- Bookkeeping software (QuickBooks, etc.): $10–$30/month
8. Office Space or Equipment
If you’re not running your business from home or online, you’ll need to budget for:
- Office rental: $500–$5,000/month depending on city and size
- Equipment and furniture: $1,000–$10,000+
- Utilities and internet: $100–$500/month
9. Marketing and Advertising
Getting your first customers will likely involve some marketing costs.
- Social media ads: $100–$1,000/month
- Email marketing tools (Mailchimp, etc.): $0–$50/month
- SEO/content services: $500–$2,000/month (if outsourced)
Estimated Total: Startup Budget Ranges
Here’s a rough breakdown of what you might expect to spend when starting out:
| Business Type | Lean Startup (Home-Based) | Small Brick-and-Mortar |
|---|---|---|
| Legal & Formation | $300–$800 | $300–$800 |
| Licensing & Permits | $50–$500 | $100–$1,000 |
| Bank Account & EIN | $0–$50 | $0–$50 |
| Website & Branding | $100–$1,000 | $500–$5,000 |
| Office & Equipment | $0–$1,000 | $2,000–$10,000+ |
| Marketing & Ads | $100–$500 | $500–$2,000 |
| Total Estimated | $550–$3,500 | $3,500–$20,000+ |
Tips to Keep Startup Costs Low
- Start with a lean business model: Offer services instead of products to avoid inventory costs.
- Use free tools like Canva, Google Workspace, and WordPress to build your online presence.
- Work with a virtual team or freelancers instead of hiring full-time staff.
- Choose a business-friendly state with low fees and fewer taxes like Wyoming or Delaware.
Final Thoughts
So, how much money is needed to start a company in the USA? The answer ranges widely depending on your goals and business model. You can get started with less than $1,000 for an online, service-based business—or spend $10,000+ for a physical storefront.
The key is to plan realistically and make sure your budget aligns with your goals. Before you launch, be sure to consult with legal and financial experts to ensure compliance with all local, state, and federal regulations.
If you need help choosing the best state, forming an LLC, or understanding your tax obligations as a foreign founder, I can guide you with tailored resources.