When a non-US founder asks me how much a US LLC costs, the honest answer is “it depends on what you’re actually buying.” A $90 state filing in Delaware looks cheap until you see the $300 annual franchise tax that hits you every year after. A $500 setup package looks reasonable until you realize it doesn’t include the EIN, the address, the phone number, or anything past month 12.
This is the line-item breakdown I wish someone had handed me before we built Mizu — what every component actually costs in 2026, what gets quoted versus what shows up later, and how math compares across the main paths a non-US founder can take.
Year 1: what it actually costs to start
These are the line items every non-US founder hits, in order.
State filing fee — paid once, to the state
| $100 | $90 | $50–$125 |
|---|---|---|
| Wyoming LLC (Articles of Organization) |
Delaware LLC (Certificate of Formation) |
New Mexico / Florida range |
This is the cheapest part of the whole exercise. Don’t pick a state based on this number.
Registered agent — required in every state, paid annually
Wyoming: $50–$200/year (most reputable agents land around $100–$150). Delaware: $100–$300/year. The RA is the legal address that receives state mail and lawsuits on your behalf. It’s not optional, and the state will administratively dissolve your LLC if you don’t have one.
EIN — issued by the IRS, free if you do it yourself
DIY by fax (no SSN): IRS standard turnaround is currently 4–8 weeks, sometimes longer. Through a third-party designee, typically $50–$200, can be turned around in days. The EIN is technically free. What you’re paying for if you outsource it is speed and the someone-else-handles-the-IRS-paperwork tax.
US business address / mail forwarding
Not legally required, but practically required. Standalone services run $10–$30/month (StartPac, iPostal1, Anytime Mailbox). You need a real US address that’s not your registered agent address for bank applications, IRS correspondence, and most US service signups.
US business phone number
Not legally required, but Stripe and most banks want one. Standalone VOIP services: $20–$60/month. Stripe in particular has gotten stricter about phone verification — a non-US phone or a clearly-virtual number can trigger additional verification.
Operating Agreement
For a single-member LLC, a simple template is usually fine. For multi-members or anything with non-standard equity, get a real attorney ($200–$1,000+).
BOI (Beneficial Ownership Information)
As of the March 2025 FinCEN Interim Final Rule, entities formed in the United States — including foreign-owned LLCs formed in US states — are exempt from BOI reporting. Foreign entities registered to do business in a US state are treated differently, so check current FinCEN guidance if that’s your setup.
Year 2 and forever: the part nobody emphasizes
Most cost comparisons you’ll see online stop at year 1. The bill that actually matters is what hits you every January after.
State annual report / franchise tax
- Wyoming: $60 minimum (or 0.0002 × Wyoming-located assets, whichever is greater; most small LLCs pay the minimum)
- Delaware LLC: $300 flat franchise tax, every year, regardless of revenue
- New Mexico: no annual report or franchise tax (one of the few states)
- Florida: $138.75 annual report
Wyoming vs. Delaware is a $240/year gap that compounds for the life of the company.
Form 5472 + pro-forma 1120 prep — for foreign-owned single-member LLCs
Outsourced to a specialist: $200–$500/year. A US CPA cold: $500–$1,500/year, often more. Skipping it is a $25,000/year penalty exposure.
Everything else that recurs
- Registered agent renewal — same as year 1
- Mail forwarding / address renewal — annually, same as year 1
- Phone renewal — monthly or annually
- Bookkeeping — DIY free (your time), or light outsourced $50–$200/month
- Federal income tax prep, if you have ECI — fact-specific
The hidden costs that don’t show up on any pricing page
These are the ones that surprise people the most, because nobody quotes them upfront.
Foreign qualification
If your LLC is formed in Wyoming or Delaware but you’re actually operating from another US state, you’re typically required to register as a “foreign LLC” there. Common cost: $300–$800/year per state, plus that state’s annual report. This catches a lot of US-based founders who picked Wyoming “for the tax savings” and then got a tax bill from California or New York anyway.
Reinstatement fees
Miss your annual report or let your registered agent lapse, and the state administratively dissolves your LLC. Bringing it back requires a reinstatement fee plus all back annual reports — typically $200–$500 plus the missed years.
Bank account rejection
If Mercury or Relay rejects your application, you’ve lost a few weeks. Some founders end up paying $200–$500 to a bank-introduction service to try again.
Stripe verification delays
Stripe can hold your account for additional verification for days or weeks if your documents don’t line up. The cost isn’t a fee — it’s the revenue you can’t collect during the hold.
EIN re-letter requests (147C)
Banks sometimes ask for an IRS letter confirming your EIN if you’ve lost the original CP-575. The IRS will send a 147C letter for free, but it requires calling them — from outside the US, often a multi-hour exercise.
State sales tax registration
If your LLC sells physical goods or certain digital services to US customers, you may have nexus in states where you have to register and remit sales tax. Budget for either software (Anrok, TaxJar) or a sales tax accountant.
How the major paths actually stack up
Treat the numbers below as a ballpark for 2026 — provider pricing changes. The point is the structural difference between paths.
The honest comparison isn’t “who has the lowest year-1 number.” It’s “what does the path look like through month 18, when you actually need to be operating, and what does year 2 cost?”
What does this mean in practice
Three things matter more than the year-1 sticker price:
- State choice. Wyoming is meaningfully cheaper to operate year-over-year than Delaware for a non-VC founder. The exception is if you’re raising venture capital and need a Delaware C-corp — a different conversation.
- What’s bundled vs. a la carte. EIN, address, phone, and bank/Stripe pathways are all things you’ll need. If your provider doesn’t include them, you’re stitching them together yourself, and the all-in cost converges anyway.
- Year 2 economics. A cheap year-1 setup with no compliance plan means you’re back in the market every January figuring out how to file 5472 and the state annual report. The recurring cost is the cost that matters.
This is exactly the math that drove how we priced Mizu. $499 for the operational pipeline, $399/year to keep it running — because the bundled, Wyoming-by-default path is what most non-US solo founders actually need, and the year-2 number is what determines whether the company stays in good standing or quietly drifts into administrative dissolution.
FAQ
Why Wyoming and not Delaware?
Wyoming has a $60 annual report; Delaware has a $300 franchise tax. That’s a $240/year gap forever. Delaware makes sense if you’re raising VC money and need a Delaware C-corp for clean cap-table reasons. For non-VC solo founders, Wyoming is the practical default.
Do I really need a US address and phone if I have an LLC?
Not legally to form the LLC. Practically yes for almost everything that comes after — bank applications, Stripe verification, IRS correspondence, even some payment processors’ KYC.
What’s the single biggest cost surprise founders run into?
Foreign qualification. Forming a Wyoming LLC and then operating from California means you owe California’s $800/year franchise tax plus registration fees, on top of Wyoming’s costs. Picking the formation state is not the same as picking your tax state.
Can I avoid Form 5472 by not funding the LLC from my own account?
Sometimes, technically, but it’s the wrong question. Most founders fund the LLC from their own account at some point. Once you do, 5472 is owed for that year. Trying to engineer around it is more expensive than just filing it.
