Key Takeaways

  • DBA (Doing Business As) registration is often required if operating under a name different from your own, and costs between $5 and $100 depending on the state.
  • Registering an LLC or corporation includes state filing fees ranging from about $50 to $800.
  • Federal trademark registration costs $375 and offers national protection for your business name.
  • Some cities require additional local business licenses or permits, with separate fees.
  • Choosing the right business structure (LLC, S Corp, C Corp, etc.) impacts costs and tax obligations.
  • Additional expenses may include obtaining an EIN, legal support, publication fees, and compliance costs.
  • You can connect with qualified business attorneys via UpCounsel for tailored guidance.

Registering Your Business Name

If you plan to do business under a name other than your own name, you will need to register a doing business as (DBA) name in most states. This is also called a trade name or fictitious business name. For example, if your name is John Smith but you want to open a store called Coffee and Conversation, you need to register the latter as a DBA name (typically through the register of deeds or county clerk's office). The cost for registering a DBA name is typically less than $100 but varies by state to as little as $5.

Local Business License and Permit Fees

Depending on your city and industry, you may need to obtain a local business license or additional permits. These licenses are typically issued by your city or county government and may be required even if you've registered your business name or entity at the state level. Costs vary widely:

  • City business license fees: Range from $25 to $500 annually.
  • Zoning and occupancy permits: Required for physical locations, especially retail or manufacturing spaces.
  • Industry-specific permits: Such as health permits for food-related businesses or contractor licenses for trades.

Check with your local city or county government to identify all required permits and associated costs before operating.

Forming a New Business Entity

If you want to form a business that stands as its own legal entity, such as a limited liability company (LLC) or corporation, you must register with the state. Sole proprietorships and partnerships do not usually require registration, but this varies by location.

If you're registering a new business, the name registration is typically included in the filing fee. This cost varies by state but is often several hundred dollars. For example, LLCs and corporations pay $180 in Washington state and $300 in Texas.

Additional Filing and Compliance Costs by Entity Type

 Beyond initial formation, maintaining a registered business involves ongoing state requirements and costs. Here’s a breakdown by entity type:

  • LLCs: Most states require an annual report or biennial statement, with fees ranging from $50 to $500. Some states also charge franchise taxes.
  • Corporations: C Corps and S Corps must often file annual reports and pay franchise taxes. California, for example, requires a minimum $800 annual franchise tax.
  • Publication requirements: States like New York mandate that newly formed LLCs publish formation notices in local newspapers, which can cost $500 to $1,500 depending on the county.

These recurring costs should be considered when evaluating how much it costs to register a company and maintain it over time.

Registering a Trademark

Registering your business name as a trademark with the U.S. Patent and Trademark Office prevents others from using a similar name. This provides stronger protection than simply registering the name at the state level, especially if you plan to expand your business nationally or internationally. Registration allows you to sue those who infringe on your trademark in federal court.

Trademark registration carries a non-refundable fee of $375. Having your form completed by a qualified attorney can ensure that you're not attempting to register an already existing trademark and increases the chances that your application will be approved.

If your business will only operate locally, you can save money by foregoing federal trademark registration. Your attorney can help you determine which route provides the protection you need in the most cost-effective way.

State vs. Federal Trademark Registration Costs
 

While federal trademark registration through the USPTO costs $375 per class of goods or services, state trademark registration is an option for businesses operating locally. Key differences:

  • State trademark registration: Costs typically range from $50 to $150 and offer protection only within that state.
  • Federal registration: Grants exclusive nationwide rights and the ability to use the ® symbol.

State-level trademarks are easier and quicker to process but provide limited legal recourse. A trademark attorney can help determine whether state or federal registration offers better value for your business needs.

Other Common Costs Associated with Starting a Business
 

In addition to formal registration and licensing, several other costs may apply when launching a company:

  • EIN (Employer Identification Number): Free to obtain through the IRS but may incur fees if you use third-party services.
  • Legal and consulting fees: Depending on complexity, expect to pay between $500 and $2,500 for help forming your business and drafting contracts.
  • Business insurance: General liability insurance premiums typically start at $500 annually, but costs vary by industry and coverage level.
  • Business bank accounts and software: Setting up financial infrastructure may cost between $100 and $500 initially, plus ongoing fees.
  • Website and branding costs: Domain names, logos, and web development may add $500 to $5,000, depending on quality and customization.

All these should be factored in when answering the question, “how much does it cost to register a company?” in a comprehensive way.

Frequently Asked Questions

How much does it cost to register a company in the U.S.? Costs vary by state and business type, but basic registration fees range from $50 to $800. Additional costs include DBAs, licenses, trademarks, and annual reports.

Can I register my business online? Yes, most states allow online registration through the Secretary of State's website. Online filing is typically faster and sometimes cheaper than paper filing.

Do I need a business license if I form an LLC? Yes, business licenses are separate from forming an LLC. Many cities and counties require you to obtain a local license to operate legally.

Is federal trademark registration necessary for my business name? Not always. If you operate locally, a state-level trademark or even just a DBA may be sufficient. Federal registration is beneficial for national or online businesses.

Where can I get help with registering my business? You can find experienced business attorneys on UpCounsel to guide you through the process and ensure compliance with state and federal requirements.

If you need help with registering a company in the U.S., you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.