The daunting task of registering a company and dealing with all the cost and tax stuff can be a huge challenge for a non-US resident. Here, your business might need an appropriate authority that can help you to go smoothly through the process. But, before it, you need to understand the costs involved in the process as it will help you make an informed decision and avoid any financial surprises down the road. 

Fastcorpusa brings you a detailed article that includes a comprehensive breakdown of the costs associated with registering a C-Corporation or C-Corp in the US. The prices will cover the fees charged by the state, and federal government, business formation services, and lawyers. 

After all, the more you know, the better!

C-Corp Registration Cost 

The cost of registering a C-Corp as a non-US resident depends on the state you choose for forming your corporation.  Each state has its own code of conduct in terms of fees. Normally, the fees can range from $1000-$2000 but it depends on whether you hire an attorney to assist with the process or choose a formation service. The cost includes your US bank account set-up, EIN (Employer Identification Number), and obtaining a mailing address in the US. 

C-Corp Tax Rate in the US 

A C-Corp is a legal entity that has a separate tax system from all the stakeholders. The corporation will pay taxes at the corporate level and all the stakeholders will pay taxes as dividends. The system refers to a double taxation system. According to an estimate, the US tax rate for C-Corps in 2023 is almost 21% on earnings held in the business beyond its business needs.  However, there are some tax benefits that C-Corp shareholders can take to offset the double taxation.

• A C-Corp has the potential to minimize the overall tax burden. 
• A lower tax rate available for accumulating funds 
• Fringe benefits 
• Financing 
• Fewer restrictions for owners 
• Bonus and salary write-offs 

C-Corp Drafting Cost 

After registering the corporation, drafting documentation is the next step where you need to lose your pocket a little bit more. The drafting involves all the major costs involving shareholder agreement, issuance of stocks, licenses, and certificates, filing articles of incorporation,  obtaining EIN number of course, and electing a board of directors for all legal processes. The drafting and filing of important documents with the state secretary is a crucial requirement of C-Corp formation. You can choose a corporate attorney to get done your work in the C-Corp world and avoid any delays and mistakes. An attorney is experienced in drafting and evaluating costs for your C-Corp process. 

Let’s narrow down the cost analysis more for an easy understanding!

C-Corp Shareholder Agreement Cost

A shareholder agreement is a legally binding document that lists the rules and regulations of running a C-Corp. The agreement protects the rights and interests of every shareholder involved in the C-Corp and builds a fair relationship among them. It also includes the obligations every shareholder carries toward another and the company’s well-being in general. The rights and obligations mainly revolves around company’s decisions and how the company’s shares are sold. 

A C-Corp shareholder agreement requires all shareholders to bring and make any change. You need to hire an an experiences corporate lawyers for this purpose. He will ensure that the interests of the shareholder are protected and no mistakes are there. You will have to pay for the lawyer for his time and legal services. This will include drafting the documents, communication, consultation and revisions. The average cost of this agreement can range from $1300-$1500 across all the states. 

EIN Cost 

It’s is a unique identifier for your C-Corp that is used for tax purposes for getting bank accounts or any other official ordeal. However, it’s not added in your incorporation at the time of registration and you need to get separate documentation for it. The one time cost could be around $800 but depend on the state you choose. 

Other Charges 

You can’t take the eyes from the ongoing costs other than the initial cost. The other charges include the taxes, annual fees and compliance requirements. 

Annual C-Corp Charges are for maintaining the C-Corp status throughout the year. That’s how your C-Corp can operate legally without any hassle. The annual fees vary from state to state but the range goes from few to several thousand dollars annually. 

US Taxes include the federal and state taxes that can be quarterly other than annually. C-Corps are subjected to both taxes on the basis of their earnings. As it is already mentioned, federal tax rate is 21% but the state tax vary by state. 

Regulations Charges are also known as compliance requirements. C-Corps are subjected to comply with various state and federal regulations to update the status in the market. The regulations may include filing annual reports, maintaining PR, annual meetings, annual reports, licenses, or any fines or penalties. 

As it is already described that you need an attorney lawyer for dealing the company legally. But, it can’t be the one time budget. You may seek his services further in the business depending on the nature and complexities of your business. As a non-US resident, lack of planning budget properly from these costs can lead to financial difficulties and you may get in trouble down on the road. 

Tips For Efficient Costing 

Since you’re not familiar with the C-Corp market of the US, you always need some professional consultancy for these matters. The best is to hire a compelling channel to get things done for you and complete the registration for you. You should only pay a specific amount along with your specific C-Corp details. 

You might be thinking that it’s so much to do with the cost but we got you covered. Here are some tips that can help you to calculate your budget efficiently and paying your costs wisely. 

• Always choose a state that is cost and tax efficient. At fastcorpusa, you will get all the state details in a comprehensive manner so that you will be able to decide in no time. As you know enough that every state has its own regulations, fees and taxes associated with registering and operating a C-Corp. The states like Wyoming, Nevada and Delaware offers you lower fees and taxes and can help to reduce costs overtime. 
• Do not indulge yourself into unnecessary hurdles because an experienced lawyer can save both your time and money. Most of the time, entrepreneurs try to do everything by their own without getting an expert advice. At our platform, right consultancy is just one step away. You can meet all the compliance requirements and identify ways to reduce costs. 
• Right now! You are at right place as you are seeking an online resource for going through your C-Corp things. There are also many online resources available for C-Corp business owners such as articles, and state-specific websites. These online resources are rich in information regarding state, taxes and requirements. You must complete your research prior registration as it will help in saving your time and money. 
• Do not give away everything into the hands of others. You must be on the passenger seat rather then sitting on the backseat during all your C-Corp journey. You must be the one who keeps an eagle view of the direction and give directions to the driver to take the right turn. Therefore, you must be able to handle some tasks of your C-Corp on your own such as maintaining records. It’s important to be aware fully of any legal compliance.  
• The most important way of cutting out the extra burden and cost is to outsource your accountancy tasks. A full-time accountant is the one you must be needed all along the way. A professional help can maintain your company’s finances in order without putting you into bearing the cost of a full-time employee. As a non-US resident, you must be proactive to maintain your C-Corp while minimizing expenses and an accountant could be a great help. 

Final Thoughts 

A C-Corp’s formation and cost is undoubtedly a hectic process. As a non-US resident, it becomes even more difficult for you to operate it smoothly. Therefore, prior understanding of the various costs and ongoing compliance requirements can save you some precious time. You become more attentive toward your financial matters when you take off that burden your shoulder by becoming an efficient cost planner. After all, all you need is a less financial burden with more and more financial stability.