How Much Does It Cost to Incorporate in 2025?
Incorporating a business creates a legal entity separate from its owners, providing liability protection, credibility, and tax advantages. Costs vary significantly by state and the services you use.
C-Corp vs S-Corp Costs
Formation costs are nearly identical for C-Corps and S-Corps. The difference is an S-Corp election requires filing IRS Form 2553, which is free to file yourself. If you hire an accountant, expect to pay $150–$500 for the S-Corp election and initial setup.
Why Delaware?
Delaware's Court of Chancery has centuries of established business case law, making legal outcomes more predictable. Most venture capital investors require Delaware incorporation. The filing fee is just $89 and the annual franchise tax is $50 minimum (though it can rise significantly based on authorized shares).
What You Actually Need
- Articles of Incorporation (filed with state)
- Corporate bylaws (required in all states)
- Registered agent in state of incorporation
- EIN from IRS (free)
- Initial board/shareholder meeting minutes
- Stock certificates (if issuing shares)