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What is the real cost of registering a US company as an Indian resident in 2026?
A bare-bones LLC in a low-fee state can be registered for roughly $100-$200 in government fees. A realistic first-year all-in budget for an Indian founder is $500-$1,500, and $800-$2,500+ if you add ITIN help, a CPA for federal filings, and banking workarounds.
Quick Answer: An Indian resident can own 100% of a US LLC or C-corp without a visa or US address. State filing fees run about $50-$500 [7]. The IRS charges nothing for an EIN (Form SS-4) and nothing to file Form 5472 or Form 1120. The real money goes to the state every year, your registered agent, and a CPA.
Three buckets. Keep them separate or you will overpay.
- Government fees - state filing, annual report or franchise tax. IRS forms cost $0.
- Provider fees - registered agent, formation service, US address, phone number.
- Recurring costs - agent renewal, state annual report, CPA, bank and payment fees.
All figures below are USD. At an approximate rate of ₹83-₹88 to the dollar, a $1,000 budget is roughly ₹83,000-₹88,000 - and the rate moves, so convert on the day you pay.
Which state should an Indian founder pick, and what does each one charge?
For most Indian solo founders with no US investors, Wyoming or New Mexico is cheapest and simplest. Delaware is the default only if you plan to raise US venture capital. Texas makes sense if you have real operations there.
| State | LLC filing fee | Annual obligation | Registered agent | Notes for non-residents |
|---|---|---|---|---|
| Wyoming | ~$100 | ~$60 minimum annual license tax | Required | Cheapest clean option for a plain LLC |
| Delaware | $110 | $300 annual LLC franchise tax | Required | Default for VC-backed C-corps, not for a solo LLC |
| Texas | $300 | Franchise tax applies | Required | No state income tax, higher upfront fee |
| New Mexico | ~$50 | No annual report | Required | Lowest ongoing admin |
| California | $70 | $800 minimum franchise tax | Required | The trap - you pay $800/yr even with zero revenue |
The Delaware confusion is worth clearing up. A Delaware LLC pays a flat $300 annual franchise tax. A Delaware C-corp does not pay a flat $300 - it pays a franchise tax calculated from authorized shares and other factors, which can be far higher. Most blog posts blend the two. They are different taxes on different entity types.
One more trap: if you form in Wyoming but actually run the business from Texas, Texas can require you to foreign qualify - register again in Texas and pay a second set of fees. Formation state and operating state are not always the same thing.
How much do an EIN and an ITIN actually cost an Indian founder?
An EIN is free from the IRS (Form SS-4), and an Indian founder can get one without an SSN or ITIN by fax or mail. An ITIN (Form W-7) is also free from the IRS, but usually costs $200-$400 through a Certifying Acceptance Agent if you want to avoid mailing your passport.
Official form (IRS.gov): Form SS-4 official PDF
Official form (IRS.gov): Form W-7 official PDF
Here is the confusion to kill early: you usually do not need an ITIN to own an LLC or open a business bank account. You need an EIN. An ITIN is for personal US tax filing or certain US-source income. Paying $300 for an ITIN you never needed is one of the most common wasted costs.
For the EIN, you file Form SS-4, mark the responsible party section correctly, and send it by fax or mail. Note: manual IRS processing for foreign applicants can take weeks, not days.
For the ITIN, two routes. Mail your original passport to the IRS - free but slow and you lose the passport for weeks. Or use a Certifying Acceptance Agent who verifies your documents and sends the W-7 for you - typically $200-$400.
If you want help with getting an EIN as a non-US resident, that is a separate, free-from-the-IRS step - never pay a provider for the EIN itself.
What do a registered agent, US address, and phone number cost?
Budget $50-$300 per year for a registered agent, $0-$300 per year for a US business address, and $0-$200 per year for a US phone number.
A registered agent is a person or company physically present in the state who accepts legal documents on your behalf. Every state requires one. You cannot use a PO box, and using your own Indian address is generally not allowed.
Heads-up on the bundle trap: many formation services include a "free" registered agent for year one, then auto-renew at $100-$300. Read the renewal price before you buy, not after.
A virtual US address and a registered agent address are often two different products. You may need both - one for mail and banking, one for legal service. If you plan to open a US account, a US business bank account setup usually starts with a real US address and phone number.
How much does US banking and payment setup cost a non-resident?
Opening a business bank account is often $0 in monthly fees at Mercury or Wise Business, but approval is discretionary and some Indian founders are declined. Budget for alternatives and for per-transaction FX and payout fees.
| Option | Cost structure | Reality for Indian founders |
|---|---|---|
| Mercury | No monthly fee | Needs EIN + US address; approval discretionary |
| Wise Business | Setup fee varies | Strong for INR/USD movement |
| Payoneer | Per-transaction fees | Widely used, fee per payout |
| Stripe | ~2.9% + $0.30 per charge | Payment processing, not a bank |
| Traditional US banks | Monthly fees vary | Usually need US presence |
Two honest points. First, Mercury, Wise, Payoneer and Stripe are not banks in the traditional sense, and funds may not be FDIC-insured - check current terms. Second, no provider guarantees approval. An LLC may make you eligible to apply; the decision stays with the provider.
If remote options decline you, a brick-and-mortar route exists but usually needs US presence. See in-person US bank account help if that becomes your path.
What are the annual compliance costs an Indian founder must budget for?
Plan for $500-$1,500+ per year: registered agent renewal, state annual report or franchise tax, and CPA fees to file Form 5472 + pro forma 1120. The federal forms are free, but the penalty for not filing is $25,000.
Official form (IRS.gov): Form 5472 official PDF
For a foreign-owned single-member LLC, you file Form 5472 attached to a pro forma Form 1120. Due with the tax return - generally April 15, or June 15 with an extension. Miss it and the IRS can assess a $25,000 automatic penalty.
State deadlines matter too. Wyoming's minimum annual license tax is about $60. Delaware's LLC franchise tax is $300. Texas has a franchise tax. New Mexico has no annual report.
A C-corp changes the picture: Form 1120, potential 21% federal corporate tax, a Delaware franchise tax calculated differently, and 83(b) elections for founders. If you are raising US venture capital, that is the structure - but it costs more to run.
Indian-side costs exist too. Tax residency, FEMA/ODI rules, and GST on exports can add obligations. For the US filings, a federal tax support service can handle Form 5472 and Form 1120.
What is the total first-year budget, and where can an Indian founder save?
A lean Wyoming LLC year one is roughly $500-$900 all-in. A Delaware C-corp targeting US VC is more like $1,500-$3,000+ once you add franchise tax, CPA, and banking setup.
| Item | Low | High |
|---|---|---|
| State filing fee (government) | $50 | $300 |
| Registered agent (year 1) | $0 | $300 |
| US address + phone | $0 | $500 |
| EIN | $0 | $0 |
| ITIN (only if needed) | $0 | $400 |
| CPA for 5472 + 1120 | $300 | $800 |
| State annual report/franchise | $60 | $300 |
| Banking/payment fees | $0 | $300 |
| Total | ~$410 | ~$2,900 |
Where to save:
- File directly with the state to skip provider markup.
- Get the EIN yourself - it is free.
- Use a CAA only if you truly need an ITIN.
- Avoid California unless you must - the $800 minimum franchise tax applies regardless of revenue.
- Cancel or renegotiate any "free" agent bundle before it renews.
Hidden costs to watch: foreign qualification in a second state, sales tax registration, and forex/FIRC charges when wiring money from India.
Common mistakes Indian founders make with US company costs
- Assuming an ITIN is required to start. It usually is not - the EIN is what you need.
- Picking California or Delaware for prestige and getting hit with $800 minimum franchise tax or $300 annual LLC tax.
- Forgetting Form 5472 + 1120 and facing the $25,000 penalty.
- Believing a "free registered agent" is free forever.
- Budgeting only for formation and not for year-two compliance, CPA, and banking fees.
- Sending money from India without checking FEMA/ODI and FIRC documentation.
Frequently Asked Questions
Do I need an ITIN to register a US company as an Indian resident? No. You need an EIN, which is free from the IRS via Form SS-4 and does not require an SSN or ITIN. An ITIN is only needed for personal US tax filing or certain US-source income.
Can I get an EIN without an SSN or ITIN from India? Yes. File Form SS-4 by fax or mail and expect weeks of processing. It is free - never pay a provider for the EIN itself.
Is Wyoming or Delaware cheaper for an Indian founder? Wyoming is cheaper for a plain LLC (~$100 filing, ~$60 minimum annual license tax). Delaware costs more annually ($300 LLC franchise tax) but is the default if you plan to raise US venture capital as a C-corp.
How much does it cost to keep a US LLC compliant each year? Budget $500-$1,500+ per year: registered agent renewal, state annual report or franchise tax, and CPA fees for Form 5472 + pro forma 1120. The IRS forms are free but the failure-to-file penalty is $25,000.
Can an Indian founder open a US business bank account remotely? Often yes with Mercury or Wise Business, but approval is discretionary and not guaranteed. Alternatives include Payoneer and Stripe; traditional US banks usually require US presence.
What is the cheapest way to register a US company from India? File directly with a low-fee state like Wyoming or New Mexico, get the EIN yourself for free, and only pay for a registered agent and a CPA when required.
If you want help with US LLC formation, EIN and business setup, NexFyla can assist - see NexFyla pricing.
*Last updated: February 2026.*
Sources
- [7] Stripe - How to open an LLC in the USA for nonresidents: https://stripe.com/resources/more/how-to-open-an-llc-in-the-usa-for-nonresidents
- [5] Stripe - How much does it cost to incorporate a business in the US: https://stripe.com/resources/more/us-business-incorporation-costs-101-which-fees-to-consider-and-how-to-reduce-costs
- IRS Form SS-4: https://www.irs.gov/pub/irs-pdf/fss4.pdf
- IRS Form W-7: https://www.irs.gov/pub/irs-pdf/fw7.pdf
- IRS Form 5472: https://www.irs.gov/pub/irs-pdf/f5472.pdf