Cost & Process to Register a Business in the US

Introduction

The United States is one of the most attractive places in the world for entrepreneurs. With its massive consumer market, strong legal system, and access to funding, many local and international business owners dream of setting up their companies here. But before you get started, it’s important to understand two key things: the cost registering  a business in the USA.

Knowing these details in advance helps you prepare better, avoid mistakes, and launch your company smoothly. Let’s break it down step by step.

Cost to Register a Business in the US

The cost of registering a business in the US can vary widely depending on the business structure and the state where you plan to operate. Below are the common costs you should expect:

 State Filing Fees

• Each state charges a filing fee when you register an LLC or Corporation.

• Fees range from $50 to $500.

• Popular states like Delaware, Nevada, and Wyoming are business-friendly but still require filing fees.

 Name Registration Fee

• Registering your business name (or DBA – Doing Business As) costs between $10 to $100, depending on the state.

 Employer Identification Number (EIN)

• Getting an EIN from the IRS is free.

• Some agencies charge a service fee if they apply on your behalf, but you can easily do it yourself online.

 Licenses and Permits

• Costs depend on your industry.

• Local licenses may cost as little as $50, while federal permits (for regulated industries) can cost several hundred dollars.

 Registered Agent Fees

• Most states require a Registered Agent for your company.

• Fees usually range from $100 to $300 per year.

Annual or Biennial Fees

• States require ongoing compliance fees or annual reports.

• Costs range from $50 to $500, depending on the state.

 On average, the total initial cost to register a business in the US ranges between $500 and $1,500, though it may be higher for specific industries.

Process to Register a Business in the US

Now that you know the cost, let’s go through the step-by-step process to register a business in the US:

Choose Your Business Structure

• Decide whether you want to form a Sole Proprietorship, Partnership, LLC, or Corporation.

• This decision impacts taxes, liability, and ownership flexibility.

 Pick and Register a Business Name

• Make sure the name is unique and not trademarked.

• Register your business name with your state.

• Secure a DBA (Doing Business As) if needed.

 Apply for an Employer Identification Number (EIN)

• Obtain your EIN from the IRS (free online application).

• This number is required for taxes, hiring employees, and opening a business bank account.

 File With Your State

• Submit Articles of Organization (for LLCs) or Articles of Incorporation (for Corporations).

• Pay the state filing fee.

• Appoint a Registered Agent to receive legal documents.

 Obtain Necessary Licenses and Permits

• Depending on your industry, you may need:

  • Local business licenses

  • Sales tax permits

  • Health and safety permits

  • Federal industry-specific licenses

 Many businesses rely on consultants like bizz crave to help them identify the exact permits they need.

Open a Business Bank Account

• Separate your business and personal finances.

• Most banks require your EIN, registration documents, and ID proof.

 Stay Compliant

• File annual or biennial reports with your state.

• Pay renewal fees for licenses and permits.

• Maintain accurate accounting and pay taxes on time.

Cost vs. Value of Registering Properly

While the process requires time, money, and effort, properly registering your business offers huge benefits:

• Legal protection for your personal assets

• Better credibility with customers and investors

• Eligibility for loans and grants

• Long-term business growth opportunities

By following the process carefully  or seeking guidance from experts like Bizz Crave  you ensure your business is compliant and ready for success.

Conclusion

Understanding the cost and process to register a business in the US is the first step toward achieving your entrepreneurial dream. While initial expenses can range from a few hundred to over a thousand dollars, the long-term benefits of legal protection and growth potential make it worth every penny.

By choosing the right structure, filing correctly with your state, obtaining licenses, and staying compliant, you’ll lay a strong foundation for your business. And if you want expert help, partnering with professionals like Bizz Crave can make the journey smoother and stress-free.

Start today   because the sooner you register, the sooner you can bring your American dream to life.