Starting a business in the US raises dozens of questions about costs, entity types, state selection, and compliance. Rather than sending you through ten separate articles, this page collects the questions real founders ask most frequently and answers each one directly. Every answer reflects current 2026 filing requirements, verified against official state sources. Whether you are a freelancer weighing sole proprietorship vs. LLC, a tech founder choosing between Delaware C-Corp and Wyoming LLC, or an international entrepreneur exploring US entity formation, the answers below cover the practical details you need before filing.
The cost question is universal. Every founder asks it, and the answer depends on your entity type, chosen state, and whether you handle paperwork yourself or use a formation service.
A sole proprietorship has no formal state filing fee in most states because it is not a separate legal entity. You simply begin operating under your own name. Total startup costs typically range from $0 to $300 depending on local requirements.
If you operate under a name other than your legal name, you will need a DBA ("Doing Business As") registration, which costs $10 to $100 depending on the county. Some cities require a general business license ($50 to $200). An EIN from the IRS is free. The main downside: sole proprietors have unlimited personal liability, meaning personal assets are exposed to business debts and lawsuits.
DBA registration costs between $10 and $100 in most US counties. The exact fee depends on your county clerk's office. Some states (like California) also require you to publish the DBA in a local newspaper, adding $30 to $80.
Processing takes 1 to 4 weeks depending on the county. A DBA does not create a separate legal entity or provide liability protection. It simply allows you to operate and accept payments under a business name. If you want liability protection, forming an LLC is the standard next step.
Filing Articles of Incorporation with the California Secretary of State costs $100. Add the mandatory $800 annual franchise tax (first year exempt for new corporations as of 2024), and your first-year total is $100. Year two onward: $800 minimum franchise tax plus any income-based taxes.
Additional costs include a registered agent ($100 to $299/year if you use a service), corporate bylaws drafting, initial board resolutions, and stock issuance documentation. Through Lovie's annual plan ($29/mo), all formation documents, registered agent, EIN filing, and compliance monitoring are included. State filing fees are paid separately to the state.
Delaware's Articles of Incorporation filing fee starts at $89 for a standard stock corporation. The annual franchise tax minimum is $225 (using the Authorized Shares method for companies with 5,000 or fewer shares). A registered agent in Delaware is required and costs $50 to $300/year.
Delaware remains the default choice for venture-backed startups because of its well-developed corporate case law (Court of Chancery), investor familiarity, and flexible corporate statutes. The total first-year cost for a Delaware C-Corp through Lovie is approximately $437: $348 annual plan (12 × $29) plus $89 state filing fee.
Filing a Certificate of Formation for a Texas nonprofit corporation costs $25 with the Secretary of State. This is one of the lowest nonprofit filing fees in the country.
However, the filing fee is only the beginning. You will also need to apply for federal 501(c)(3) tax-exempt status with the IRS (Form 1023 or 1023-EZ), which costs $275 to $600 depending on the form used. Texas does not charge a separate state tax-exemption application fee. Total startup costs for a Texas nonprofit typically range from $300 to $900 including all federal and state filings.
Entity selection determines your tax treatment, liability protection, ability to raise capital, and ongoing compliance obligations. The right choice depends on your industry, funding plans, and growth trajectory.
A single-member LLC in your home state is the standard recommendation for content creators. It provides personal liability protection (separating your personal assets from business obligations), pass-through taxation (no double taxation), and professional credibility for brand deals.
Wyoming is popular among content creators who want privacy (no public member disclosure) and low annual fees ($60/year). If you earn over $50,000 annually from content, consider electing S-Corp tax status to reduce self-employment taxes. The LLC structure itself remains the same; the S-Corp election is purely a tax classification change filed with the IRS.
If you live in California and run a dropshipping business, you will owe California's $800 annual franchise tax regardless of where you form your LLC. Forming in California directly is simplest because you avoid the additional cost of foreign qualification.
For dropshippers who do not physically reside in California, Wyoming offers the best combination: $100 filing fee, $60 annual report, no state income tax, and strong privacy protections. However, if you have nexus in California (employees, inventory, or significant sales), you will still need to register as a foreign LLC there. The entity type (LLC) is correct for dropshipping in all cases because it provides liability protection without the complexity of corporate governance.
Yes, technically an LLC can operate as a nonprofit in some states, but it cannot obtain 501(c)(3) federal tax-exempt status. The IRS requires 501(c)(3) organizations to be structured as corporations or trusts, not LLCs.
New Jersey, Texas, and Virginia all allow nonprofit corporations (not LLCs) to be formed for charitable purposes. If your goal is tax-exempt donations, form a nonprofit corporation. If you want a mission-driven business that does not need tax-deductible donations, a low-profit LLC (L3C) or standard LLC with a social mission works. Texas charges $25 for nonprofit incorporation; New Jersey charges $75; Virginia charges $75.
https://www.lovie.co/formation/
https://www.lovie.co/formation/state-fee-index
https://www.lovie.co/formation/us-incorporation-stats-2026
Start your formation with Lovie — $29/month, everything included.
State-specific formation guides, cost breakdowns, compliance checklists, and expert comparisons — updated for 2026.