Incorporating in the US is relatively quick and cheap. Stripe Atlas charges $500 once, and you have a Delaware C-Corp. But keeping that corporation alive has ongoing costs that add up.
Here's every recurring cost you should budget for.
Annual Cost Breakdown
1. Delaware Franchise Tax - $400/year (minimum)
Every Delaware corporation must pay an annual franchise tax. The minimum is $400 for C-Corps using the Authorized Shares method (with 5,000 or fewer shares).
Due: March 1st each year. Late payment incurs a $200 penalty plus 1.5% monthly interest.
2. Registered Agent - $100-300/year
Delaware requires a registered agent with a physical address in the state. This is the address where legal documents are served.
Popular options:
- Stripe Atlas includes this in their annual package
- Northwest Registered Agent - ~$125/year
- CSC - ~$300/year
3. Federal Tax Filing - $0-500/year
Even if your company has no revenue, you must file a federal tax return (Form 1120 for C-Corps). Options:
- DIY with tax software - $0-100
- CPA/Accountant - $300-500 for a simple return
- Stripe Atlas Tax - Included in their package
4. State Tax Filing - Varies
If your company has nexus in states other than Delaware, you may owe state taxes. For most Stripe Atlas companies with no US employees or offices, Delaware's franchise tax is the only state obligation.
5. Bank Account Fees - $0-25/month
- Modern online business banks - Often free
- Traditional banks - $10-25/month
6. US Phone Number - $5-20/month
You need a reachable US number for bank verifications, IRS correspondence, and service registrations.
| Service | Monthly | Annual |
|---|---|---|
| IncNumber | $5 | $60 |
| Typical business VoIP providers | $14-15 | $168-180 |
7. Accounting Software - $0-30/month
- Wave - Free
- QuickBooks - $15-30/month
- Xero - $15-25/month
For low-activity companies, a simple spreadsheet may suffice.
Total Annual Cost Summary
| Expense | Low Estimate | High Estimate |
|---|---|---|
| Delaware Franchise Tax | $400 | $400 |
| Registered Agent | $100 | $300 |
| Tax Filing | $0 | $500 |
| Bank Account | $0 | $300 |
| Phone Number | $60 | $180 |
| Accounting | $0 | $360 |
| Total | $560 | $2,040 |
How to Minimize Costs
The biggest fixed cost is the franchise tax ($400), which you can't avoid. But you can optimize everything else:
- Use a free online business bank for free banking
- Use IncNumber instead of a typical business VoIP service to save $120/year on your phone number
- File taxes yourself with software if your situation is simple
- Use Wave for free accounting if you have few transactions
Cut your phone number cost to $5/month
Real US phone number, SMS forwarded to email, no app needed. $5/month, cancel anytime. Save $120/year on a number you barely use.
Get your US number →The Phone Number Savings
Let's do the math on phone numbers specifically. If you're using a typical business VoIP service at $15/month:
- Typical business VoIP: $15 x 12 = $180/year
- IncNumber: $5 x 12 = $60/year
- Annual savings: $120
Over 5 years, that's $600 saved on something you barely use.
Bottom Line
Maintaining a US corporation costs at minimum $560/year, mostly driven by the Delaware franchise tax. The key is minimizing every other cost. Banking should be free (pick a no-fee online business bank), your phone number should be cheap (IncNumber at $5/month), and tax filing should be as simple as your situation allows.
Don't let maintenance costs eat into your runway. Every dollar saved on overhead is a dollar you can invest in actually growing your business.