This is a question that I personally get asked a lot, and have seen it around forums and founder communities online. I get it, you founded your company in the US, or are thinking about creating one, to solve some issues you’re currently facing, but what’s ahead? Here are the annual costs for maintaining an LLC in the US for foreign founders.
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Table of content:
- Useful articles
- All the annual expenses you have to make for an LLC in the USA
- Annual costs of an LLC in Wyoming
- Annual costs of an LLC in Delaware
- Comparison table
Useful articles:
How & why to create a company in the USA
Differences between LLC & C-Corp both in Wyoming & Delaware
All the annual expenses you have to make for an LLC in the USA
Annual Minimum LLC Taxes
This is a minimum tax for having an LLC in the United States of America, the amount depends on the state your LLC is formed in.
Annual Report Fees
In most of the states, it is required from LLCs to make a filing once a year or every two years.
Registered Agent Fees
All LLCs are required to have an agent for service of process in the state where the LLC is founded. The agent can either be an individual or a business entity that agrees to accept legal papers on the LLC’s behalf if it’s sued.
Business License Renewal Fees
An LLC must periodically renew its local or state business license every year. The license renewal fees are somewhere between $20 to $100.
Annual costs & taxes for maintaining an LLC in Wyoming
First of all, as a side note, let me mention that having an LLC in Wyoming is way easier to maintain than in Delaware. If you’re looking for the differences go to the previous paragraph and check the 2nd article.
Annual costs – LLC in Wyoming
Wyoming’s LLC is required to pay an annual fee of $60 to the Secretary of State beginning the second year. There is a $2 convenience fee for paying online. The annual report is technically $60 or $60 for every $250k in assets in Wyoming whichever is greater based on the company’s assets located and employed in the state of Wyoming. The company is also required to have a registered agent in Wyoming. Firstbase’s agent charges $49 annually to act as your agent.
Taxes
Wyoming is a unique state in the sense that it’s one of the very states that does not have a personal income tax or a corporate income tax.
Annual Minimum LLC Taxes – 0$
Annual Report Fees – 60$ per 250K$
Registered Agent Fees – 49$ + 50$ for nominee service
Business License Renewal Fees – Wyoming requires you to renew your LLC by filing an annual report due annually on the anniversary of your original filing.
Total expenses: 159$
Sources:
https://www.nolo.com/legal-encyclopedia/how-much-does-it-cost-to-form-an-llc.html
https://wyomingllcattorney.com/Form-a-Wyoming-LLC/Annual-Fees-and-Requirements
https://lasvegasestatelaw.com/renewing-your-wyoming-llc/
https://sos.wyo.gov/Business/docs/BusinessFees.pdf
Annual costs & taxes for maintaining an LLC in Delaware
For LLCs Delaware is more complicated. Delaware is mostly used to forming a C-Corp as it is more attractive to investors. Again, you can read more about the differences in the 2nd article of the 1st paragraph.
Annual costs
The annual fees for maintaining an LLC in Delaware is 300$, that’s essentially the “tax” you’ll be paying.
Taxes
Delaware is obviously another state that doesn’t have income tax.
Annual Minimum LLC Taxes – 300$
Annual Report Fees – 0$
Registered Agent Fees – 40$ – 50$
Business License Renewal Fees – 0$
Sources:
Comparison table
| Costs | Delaware LLC | Wyoming LLC |
|---|---|---|
| Annual Minimum LLC Taxes | $300 | $0 |
| Annual Report Fees | $0 | $60 for every $250k |
| Registered Agent Fees | $40-$50 | $99 |
| Business License Renewal Fees | $0 | No need |
| Total expenses | $350 Depending on the agent’s expenses | $160 Depending on how much money you have in the state |
