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What does the state actually charge to form a company in the USA?
The state fee is a government charge, not a service fee. For LLC articles it runs roughly $50 to $300 depending on the state [3]. You pay it to the Secretary of State (or the state department that handles business filings), and it is separate from anything a formation provider charges you.
Two government costs exist, not one. The first is the filing fee you pay on day one to create the company. The second is the recurring cost: an annual report, a franchise tax, or both, depending on the state. New York, for example, forms an LLC when you file Articles of Organization with the Department of State [8]. What you owe after that first filing is set by New York's own rules, not by the federal government.
Your structure changes the paperwork and the price. An LLC is a state-level structure, and each state sets its own rules for it [11]. A C-Corp files different documents (Articles of Incorporation) and in several states pays a different fee. So "form US LLC" and "incorporate in the USA" are not the same purchase.
Heads-up: the state filing fee is non-refundable even if your filing gets rejected. A name conflict or a missing field means you pay again. That is one real reason founders pay a provider: rejection costs you the fee plus a week.
Say your Articles of Organization go in with a company name the state already has on file. New York rejects the filing, you fix the name, you refile, and you pay the fee a second time. A $200 mistake caused by a five-minute name search.
Exact fees move. Check your chosen state's official fee schedule before you budget, and treat any blog figure (including this one) as a starting range, not a quote.
Which services in a formation package does a non-resident actually need?
Four services matter: state filing help, a registered agent with a US address, EIN support, and banking or payment account guidance. Everything else in a package is optional, and some of it is padding.
That is the whole test for US company formation services. Strip a package down to those four and compare what is left. A registered agent is a person or company with a physical US address who accepts legal papers (called service of process) on your company's behalf. An EIN is your company's federal tax ID number, issued by the IRS. Neither is optional in practice for a non-resident.
| Service | What it is | Who can do it | How it bills |
|---|---|---|---|
| State filing | Articles of Organization or Incorporation filed with the state | You, online, or a provider | One-time government fee |
| Registered agent | Physical US address for legal mail and service of process | A provider with a US address | Recurring, yearly |
| EIN | Federal tax ID from the IRS via Form SS-4 | You, by fax, or a provider | One-time service fee |
| Bank/payment account | Business account subject to KYC checks | You apply; provider gives guidance | Free guidance or a fee |
| Annual report / franchise tax | State compliance filing | You or a provider | Recurring government fee |
What does a registered agent do, and can a non-resident skip it?
No, you cannot skip it. The company needs a physical US address where legal papers land during business hours, and your home in India is not that address. States require a registered agent as part of the formation itself [8]. A provider supplies its own US address and forwards what arrives.
This is the line item most packages bundle as "free for year one." It is not free. It renews, and the renewal is where the provider makes its margin. Ask for the year-two price before you pay for year one.
Is EIN support worth paying for?
Sometimes. The IRS issues EINs to applicants without a Social Security number or ITIN through Form SS-4, and the practical route from abroad is fax. An "EIN service" is usually form preparation plus faxing plus follow-up. You are paying for someone to sit on hold and refax.
If your fax situation is reliable and you can absorb a few weeks of waiting, do it yourself. If you need the EIN fast to open a payment account, paying for help is reasonable. Read getting an EIN as a non-US resident before you decide.
What does "banking help" actually mean?
It means guidance, not a bank account. No provider can guarantee a bank approves you, and any package that promises a "guaranteed US bank account" is telling you something about its sales ethics. The realistic path for a non-resident is a fintech business account or a payment account such as Stripe, and both run KYC checks on you and your company. Stripe publishes its own step-by-step guide for non-residents opening a US LLC, which is the honest version of this process [7].
Suppose a package advertises a bank account as included. Read the fine print. What is included is an introduction and help with the application. The bank, or the fintech, still decides.
Where do formation packages hide the cost in year two?
In the renewals. Registered agent renewal, the state annual report or franchise tax, and any compliance add-on are the recurring lines. The items labeled "free" in year one are almost always the ones that renew.
A $399 all-in package [1] looks simple until you map it against year two. The state fee inside that number was never the provider's money. The registered agent inside that number expires. The rest is service margin. None of that makes the package bad. It means you compare packages by what renews and at what price, not by the sticker.
| Cost line | Who bills it | One-time or recurring |
|---|---|---|
| State filing fee | State government | One-time |
| Registered agent | Provider | Recurring, yearly |
| Annual report / franchise tax | State government | Recurring, yearly |
| State minimum tax (where it applies) | State government | Recurring |
| EIN service | Provider | One-time |
| Mail forwarding / compliance add-ons | Provider | Recurring, optional |
Some states charge a minimum tax regardless of profit. California's $800 franchise tax is the famous one. Delaware charges an annual franchise tax on corporations. If you form in a state where you have no customers, you pay that state for the privilege and probably also pay your home state for the right to do business there.
Imagine forming in Wyoming because a forum said it was best, then selling to customers in California. You now file in Wyoming and register as a foreign LLC in California. Two annual reports, two sets of fees, one business.
Budget year two before you file year one. Add the registered agent renewal, the annual report fee, and any state minimum tax. That number is your real annual cost of staying legal.
Can you form a US company yourself from abroad, and what is realistically possible?
Yes, mostly. The state filing and the EIN are doable alone. The registered agent address and bank KYC are where DIY gets stuck.
The official path is not secret. The SBA walks through registering a business and the federal steps that follow [2]. New York publishes its own LLC formation instructions [8]. You pick a state, check the name, file online, pay the fee, and appoint a registered agent. Then you file Form SS-4 by fax for the EIN.
Where it breaks: you need a physical US address for the registered agent, and you cannot use a PO box in most states. Bank and fintech KYC wants documents that match your filing exactly. And the IRS fax route means time zones and repeated faxes, not a web form.
| Task | DIY feasible? | Why |
|---|---|---|
| Choose state and structure | Yes | Public information, your own decision |
| File articles with the state | Yes | Online filing portals exist in most states |
| Registered agent | No | Needs a physical US address |
| EIN via Form SS-4 | Yes, with patience | Fax route works without an SSN |
| Bank or payment account | You apply | Approval is the provider's decision |
| Annual report | Yes | State portals, but deadlines are strict |
If you want the full sequence, the knowledge base has the step-by-step guides.
What questions should you ask a formation provider before paying?
Ask five things: who the registered agent of record is, whether the EIN is included or extra, what renews and at what price, what the refund policy is, and who signs the state filing. The answers separate a real service from a landing page.
| Question | Good answer | Warning sign |
|---|---|---|
| Who is my registered agent? | A named company with a US address | Vague "our partner network" |
| Is the EIN included? | Clear yes or no, with the price | "Tax setup included" with no detail |
| What renews, and at what price? | A number for year two | "Free forever" with no terms |
| Refund policy? | Written, with conditions | None stated |
| Who signs the filing? | Named organizer or you | Unclear |
Red flags worth walking away from: a guaranteed bank account, renewal pricing that appears only after checkout, no named registered agent, and any promise that the package includes tax filing. Formation is not tax advice. Your federal filings, including Form 5472 for a foreign-owned LLC, are a separate job.
If you are comparing a transparent scope against this checklist, NexFyla's pricing page shows what each tier covers.
Common Mistakes
The most common mistakes are comparing sticker prices without scope, choosing a state by internet hype, assuming the package includes tax filing, and forgetting year two entirely. Each one costs money.
- Choosing Delaware because a blog said so. Pick the state where you have customers or operations. Delaware makes sense for venture-backed C-Corps, not for a solo consultant in Pune. Forming there adds a franchise tax and a foreign registration in your real home state.
- Ignoring franchise tax and minimum taxes. Some states charge a flat minimum whether you earn or not. Check before you file.
- Treating the EIN service as tax advice. It is not. An EIN is an ID number. Your tax obligations depend on ownership, US-source income, treaty position, and entity classification, and they need a qualified tax professional.
- Believing banking is guaranteed. It is not. Apply, submit clean documents, and let the provider decide.
- Missing the annual report deadline. Late fees and, in some states, administrative dissolution follow. Put the date in your calendar the day you form.
- Not knowing who the registered agent is. When a legal notice arrives and nobody forwards it, you find out in court. Confirm the name and the forwarding process.
- Mismatched names. Your name on the state filing, the EIN application, and the bank application must match exactly. A middle name difference triggers a rejection.
Frequently Asked Questions
How much of a US company formation fee is the government fee?
The state filing fee is a government charge, commonly in the $50 to $300 range for LLC articles depending on the state [3]. The rest of a package price is the provider's service fee. Separate the two before you compare.
Do I need a registered agent if I form a US company from abroad?
Yes. The company needs a physical US address to receive legal papers, and a non-resident cannot supply that from abroad. Registered agent is a recurring provider cost, so check the renewal price.
Can I get an EIN without an SSN or ITIN?
Yes. Non-residents apply with IRS Form SS-4, typically by fax. An SSN or ITIN is not required. An EIN service in a package is usually form preparation plus faxing.
Does a formation package guarantee a US bank account?
No. Providers cannot guarantee bank approval. The realistic path is a fintech or payment account such as Stripe or Mercury, subject to KYC. Treat guaranteed banking claims with caution.
What costs recur in year two?
Registered agent renewal, the state annual report or franchise tax, and any state minimum tax. The items marked free in year one are usually the ones that renew.
Can I form a US company myself from India?
Yes for the state filing and the EIN. The friction points are the registered agent address and bank KYC. Many founders file alone and pay only for the registered agent.
Start with the year-two number. Add the registered agent renewal, the annual report fee, and any state minimum tax, and write that figure down. Then compare packages against it, not against the year-one sticker. If you want help with US LLC formation, EIN and business setup, NexFyla can assist.
*Last updated: February 2026.*
Related reading
- Operating Agreement for a Non-Resident Single-Member LLC
- Registered Agent for a Non-Resident LLC: Who Can It Be and Where
- LLC vs C-Corporation for a Non-US Founder Raising Money
Ready to act on this? US company formation takes the filing, registered agent and paperwork off your desk.