The Lowest Incorporation Fees
11 September, 2017
If you are thinking about starting a new business in the United States, you should consider many different aspects.
One of the main financial matters associated with establishing a new company are filing fees and annual fees.
The filing fee is a one-time fee paid to the state to form your company.
The annual fee is an ongoing fee paid to the state to maintain your company and keep your business in good standing. Depending on the state, it's usually paid every year or two years.
This fee is mandatory, regardless of your company's activities or income. Failure to pay this fee may result in the state dissolving your company.
Nevada, Delaware and Wyoming are the most cost effective states to incorporate and maintain a company. Specifically, Wyoming, the initial costs of company formation are below average. If you decide to incorporate in Wyoming, you will end up paying 65% less in fees compared to other states.
The annual fee to maintain your entity in Wyoming is also low. You will pay only $50 USD if your business has less than $250,000 USD in assets in Wyoming. For comparison, the average US LLC fee is $101 USD. In some states, the annual fee can go up to $500 USD (e.g. Massachusetts). In other states, you would be required to pay Annual LLC Franchise Tax of $800 USD.
Among other advantages of incorporating in Wyoming, the state offers increased privacy and superior asset protection and low taxes.
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