The Real Cost of Setting Up and Running a US Company
Written by:
Sophie Thomas
COO & Co-founder
The Real Cost of Setting Up and Running a US Company
Expanding into the US can be a game-changer for startups — access to investors, customers, and a huge market.
But let’s talk about something founders often underestimate: The actual cost of setting up and running a US company.
Spoiler: it’s not just a quick incorporation fee and you’re done. There are ongoing costs and responsibilities that are worth understanding upfront.
What's in this guide:
The Upfront Setup Costs
Setting up a US company (typically a Delaware C-Corp) is relatively quick — but there are a few moving parts.
Incorporation & Legal Setup
- Company formation
- Legal structuring (especially if part of a group)
- Share setup and documentation
- Any restructuring (e.g., a “Delaware flip”)
Registered Agent & Banking
All US companies need a registered agent in their state of incorporation. It's a low annual cost, but mandatory to receive official correspondence.
You’ll also need an EIN(Employer Identification Number) and a US business bank account. The cost here is usually more about time and process than fees.
The Ongoing Running Costs
This is where many founders are caught off guard.
State Compliance & Tax Filings
Each year, you’ll typically need to file an annual report, pay franchise tax, and maintain your registered agent. Delaware franchise tax can vary depending on your share structure.
Even if your US company isn’t actively trading, you may still need US federal tax returns, state tax filings, and ongoing bookkeeping.
Payroll & Legal Maintenance
If you hire in the US, prepare for payroll setup, employer taxes, and benefits. To stay investor-ready, you’ll also need to maintain board/shareholder records and share issuances. Investors will check this closely!
The “Hidden” Cross-Border Costs
Running a UK + US structure introduces complex considerations:
- Transfer pricing between entities
- Where intellectual property sits
- Potential UK CFC implications
- Risk of creating a permanent establishment
So… How Much Does It Actually Cost?
Here is a rough guide based on typical client scenarios we support at OnTheGo Accountants:
Quick and compliant incorporation of your Delaware C-Corp, including state filing fees and your initial registered agent setup.
Handling the tax and accounting side of restructuring properly (e.g., Delaware flip due diligence).
Note: This does not include any legal costs, which you will need to request directly from a lawyer.
Ensures your financials are clean, up-to-date, and ready for VC reporting or due diligence.
Covers Delaware franchise tax and registered agent fees (varies by share structure).
Federal and Delaware state tax returns, prepared by a US tax provider.
For a formal report. Early-stage businesses can start simpler, but formal documentation is strongly recommended before raising VC funding.
How to Keep Costs Under Control
- Choose the right structure from the start
- Plan share structure carefully (especially in Delaware)
- Get UK and US advice early
- Stay on top of compliance
- Prepare before raising investment
How OnTheGo Accountants Can Help
We help founders understand not just how to set up in the US — but whether it makes financial sense in the first place.
Speak to the OTG Team
