Complete Guide To Cost Of Maintaining A US Corporation

Establishing a U.S. corporation is an important milestone for international entrepreneurs and growing companies. However, maintaining that corporation involves recurring annual costs and compliance obligations that vary by state. Understanding these requirements helps ensure your business remains in good standing and avoids unnecessary penalties.

Below is an accurate, up-to-date overview of the typical costs and obligations for maintaining a U.S. corporation in 2025.

1. Registered Agent Fees

Every U.S. corporation must appoint a registered agent in its state of incorporation or registration. The registered agent receives official legal and tax correspondence on behalf of the company.

Most registered agent services charge between USD 100 – 300 per year, depending on the provider and the state. Failure to maintain a valid agent can lead to loss of good standing or even administrative dissolution by the state.

2. Delaware Annual Report and Franchise Tax

If your corporation is incorporated in Delaware, you must file an annual report and pay the state franchise tax each year. The minimum franchise tax is USD 175 (under the Authorized Shares Method) or USD 400 (under the Assumed Par Value Method), plus a USD 50 annual report fee.

In practical terms, most small Delaware corporations pay a minimum of USD 225 per year. The report and payment are due by March 1 each year.

These amounts and methods are prescribed by the Delaware Division of Corporations. You can confirm current rates and filing details directly at corp.delaware.gov.

3. California Minimum Franchise Tax

Corporations doing business or registered in California must pay a minimum annual franchise tax of USD 800, as required by the California Franchise Tax Board (FTB).

It is important to note that this is a tax, not a “business license fee.” Many businesses mistakenly refer to it as such. In addition to this state tax, local business licenses or permits may also be required depending on the city or county of operation, and those fees vary locally.

4. New York Biennial Statement

Corporations registered in New York must file a Biennial Statement with the Department of State every two years. The filing fee is USD 9.

This statement keeps the corporation’s registered agent and address information current. Note that corporations conducting business in New York are also subject to state corporate franchise tax, separate from this administrative filing.

5. Federal Corporate Income Tax

At the federal level, corporations are subject to a flat 21 percent corporate income tax on taxable profits.

This rate was set by the Tax Cuts and Jobs Act (TCJA) and remains current as of 2025. Federal corporate income tax returns (Form 1120) are generally due on April 15 for calendar-year corporations or on the 15th day of the fourth month after the close of the fiscal year.

6. Payroll and Employment Taxes

If your corporation hires employees, you are responsible for withholding and paying federal payroll taxes, including FICA taxes (Social Security and Medicare).

For 2025, employers contribute 7.65 percent of each employee’s wages (6.2 percent Social Security + 1.45 percent Medicare), and employees contribute an equal 7.65 percent through payroll withholding.

Self-employed individuals pay both portions, totaling 15.3 percent, commonly referred to as the self-employment tax.

For current rates and wage limits, consult IRS Publication 15 – Employer’s Tax Guide.

7. Beneficial Ownership Information (BOI) Reporting

Under the Corporate Transparency Act (CTA) administered by the U.S. Financial Crimes Enforcement Network (FinCEN), most U.S. corporations are required to report details of their beneficial owners.

However, in March 2025, FinCEN issued an interim rule that temporarily exempts domestic reporting companies from BOI filing obligations while additional legal and procedural clarifications are pending. Certain foreign reporting companies may still have filing requirements.

Business owners should continue to monitor FinCEN’s official BOI page for updates and guidance, as compliance deadlines may resume once the interim rule is replaced or amended.

8. Local and Miscellaneous Costs

Beyond state and federal obligations, businesses should budget for local business licenses, renewal fees, and any professional or sector-specific permits required by city or county authorities.

These amounts vary widely—for example, city business license fees in California can range from a flat USD 50 to several hundred dollars per year depending on business type, size, and revenue.

9. Key Filing Deadlines

• Delaware: Annual Report and Franchise Tax – March 1

• California: Franchise Tax – 15th day of 4th month after fiscal year start

• IRS (Form 1120): April 15 (for calendar-year corporations)

• New York: Biennial Statement – every two years from date of incorporation

Staying on top of these deadlines ensures your corporation remains active and compliant.

Professional Summary

Maintaining a U.S. corporation is not simply about paying annual fees—it’s an ongoing legal and financial responsibility.

The largest recurring items are the state franchise taxes (e.g., Delaware or California), registered agent fees, annual or biennial reports, and federal income tax filings.

Accurate payroll administration, awareness of new BOI requirements, and timely compliance with all due dates are essential to preserving your corporation’s good standing.

By monitoring official government sources and maintaining transparent records, your company can operate confidently within U.S. jurisdictional requirements.