One-time costs
- State formation fee — paid to the state when you file the certificate of incorporation or formation. Wyoming charges $100 for an LLC’s articles of organization; Delaware revised many of its filing fees from 1 August 2026, so check its current schedule.
- Registered agent — the first year’s fee, charged by a private provider. See choosing a registered agent.
- EIN — issued free by the IRS. See EIN without an SSN.
- Legal documents — bylaws or operating agreement, founder stock purchase agreements, IP assignments. Standard templates exist, but founder vesting and IP assignment are worth getting right.
- Bank account — many fintech platforms don’t charge to open. See US bank account from India.
Annual state costs
| Entity | What’s due | Amount |
|---|---|---|
| Delaware C-Corp | Annual report + franchise tax, by 1 March | $50 report fee + franchise tax: $175 minimum (Authorized Shares method) or $400 minimum (Assumed Par Value Capital method) |
| Delaware LLC | Annual tax, by 1 June | $400 for the 2026 tax year onwards (first paid by 1 June 2027; $300 before) |
| Wyoming LLC | Annual report licence tax, anniversary month | $60 minimum |
| Registered in California | Minimum franchise tax | $800 a year (first-year exemption for newly qualified corporations) |
| Registered agent | Annual renewal | Set by the provider |
Filing the Delaware report with the Assumed Par Value Capital figures is what keeps a typical startup’s bill near the minimum instead of tens of thousands of dollars. See the franchise tax guide.
Annual federal filings
- Form 1120 (C-Corp) or pro forma 1120 + Form 5472 (foreign-owned single-member LLC) — required every year, even with no revenue. The cost is preparation; the risk is a $25,000 penalty for a missing Form 5472. See Form 1120 and Form 5472.
- Forms 1099 / 1042-S if you pay US contractors or make payments to foreign persons.
- Federal corporate tax at 21% — only if the C-Corp is profitable.
India-side costs
- TCS on remittances: investment remittances above ₹10 lakh in a financial year attract 20% TCS — not an extra cost, since it’s credited against your income tax, but it ties up cash.
- ODI reporting: Form FC with your AD bank at the start, then the Annual Performance Report every year. See ODI rules.
- Indian tax return: Schedule FA disclosure and, where relevant, foreign tax credit.
- Indian parent companies: transfer-pricing documentation and, if applicable, consolidation. See transfer pricing.
Costs founders forget
- Late penalties — Delaware adds $200 plus 1.5% monthly interest on late franchise tax.
- Other states — hiring someone in California or New York brings that state’s registration and taxes. See foreign qualification.
- Sales tax once you cross economic-nexus thresholds. See US sales tax.
- Bookkeeping — every filing above depends on clean books. See US bookkeeping.
- Closing it later — dissolving properly means paying all taxes due through the dissolution date. See closing a Delaware company.
What a typical year involves
For a Delaware C-Corp owned by founders in India, with no US employees: the Delaware annual report and franchise tax by 1 March, the registered-agent renewal, Form 1120 with Form 5472 by 15 April, bookkeeping through the year, the APR by 31 December and Schedule FA in each founder’s Indian return. All dates: US compliance calendar.
For a fixed, all-in quote covering both the US and India sides, see US company registration from India.
Frequently asked questions
How much does it cost to keep a Delaware C-Corp each year?
The State of Delaware charges a $50 annual report fee plus franchise tax — a $175 minimum under the Authorized Shares method or $400 minimum under the Assumed Par Value Capital method — due by 1 March, plus the registered agent's annual fee and the cost of preparing federal returns.
What is the annual cost of a Delaware LLC?
A flat $400 annual tax for the 2026 tax year onwards (first payable by 1 June 2027; it was $300 for 2025), plus the registered agent fee and preparation of the pro forma Form 1120 and Form 5472 if foreign-owned.
Is the EIN free?
Yes. The IRS issues EINs free of charge, including to foreign-owned companies applying by phone, fax or mail.
Are there India-side costs of owning a US company?
Yes: ODI reporting through the AD bank including the annual APR, Schedule FA disclosure in the income-tax return, and 20% TCS on investment remittances above ₹10 lakh a year, which is creditable against income tax.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.