It is vital to understand that the financial requirements for launching a corporation in the United States entail far more than simply formal company registration. Depending on the state of registration, organization type, and specific firm needs, registration expenses can range from $300 to over $1000. Registration fees for our Indian client's range between $600 and $700.
Then there is the matter of banking, as well as merchant accounts for many business owners (what many confusingly refer to as "payment gateway"). Both are discussed in further length in this article, but if you opt to create a bank account in person in the United States or through a managed service, you should budget at least $2000 extra. About half of this money will be used for fees, with the remainder staying in the account as a balance.
Finally, set up $600-$700 for formal business registration alone, excluding the opening of a US bank account. Your bank budget should be in the range of $2,600 to $3,000. Remember that this is only the initial investment required to legally create the company. When creating your startup budget, keep in mind that your company will need additional capital for operating expenses.
In addition to the initial investment, you will incur monthly and annual expenditures for the operation of your firm. If you wish to lease a US address, expect to spend between $20 and $99 per month. Another continuous expenditure is the Registered Agent service, which we provide for a moderate $99 per year. Banking will cost you an extra $20 to $100 a month in bank fees and management costs if you utilize managed bank account services.
Finally, depending on the nature and operations of your business, you may be required to file an annual tax return (and, in some cases, pay taxes), which demands the appointment of a CPA (certified public accountant) and a bookkeeper. Simple tax returns should not cost more than $300 to $500 to submit, but more difficult cases may incur higher expenses. Remember that as the owner of the firm, you may need to obtain an Individual Tax ID Number (ITIN), which will cost $300 to $400 per partner but only must be paid once.
Banking, what about it?
The financial operations of your company are critical.
The bulk of our Indian clients seeks to open a bank account in the United States as well as a corporation in the United States, among other things.
Before you start your business, carefully plan your budget. Many clients make the mistake of expecting that their initial customers would cover a portion of their beginning and continuing expenditures. However, you should never build your business on optimism; rather, cold, hard numbers are a more client reliable instrument in the marketplace.
We recommend planning of time and setting up a specific amount to keep your company running for a full year without any sales. In the case of US enterprises, setting up $4,000-$8,000 would go a long way toward ensuring that your firm is properly set up and maintained for a year, giving you the peace of mind, you need to expand your product and customer base.