Forming a US LLC from India costs more than the initial formation fee. The real expense starts after your company is registered, with annual filings, registered agent fees, and compliance requirements in both countries.
The Formation Fee Isn't the Real Cost
US LLC formation fees usually range from $100 to $500, depending on the state. That is only the starting cost. Annual filings, tax compliance, registered agent services, and state-level charges continue every year.
Form 5472: The Filing Most Founders Miss
Every foreign-owned single-member LLC must generally file IRS Form 5472 with a pro forma Form 1120 each year, even with zero income or activity. The Form 5472 penalty for foreign-owned LLCs is $25,000 for missing or incomplete filing. Continued non-compliance can trigger another $25,000 penalty for every 30 days after IRS notice.
Registered Agent Fees, Every Year
A registered agent is mandatory for every US LLC. US LLC registered agent fees for non-residents typically range from $50 to $300 per year, depending on the state and service provider.
What India Expects From You Too
Indian residents must disclose foreign LLC ownership in Schedule FA of their income tax return, even if no money left India. Non-disclosure of foreign assets can attract a ₹10 lakh penalty per assessment year under the Black Money Act. FEMA's Overseas Direct Investment rules may also apply if capital was transferred from India.
The Real Annual Compliance Cost
The annual compliance cost of a US LLC from India depends on the state, filing requirements, registered agent, and professional support needed. The formation fee is a one-time cost. Compliance expenses continue every year.
How EasyBrise Keeps You Compliant
EasyBrise offers Compliance Monitoring to help track annual reports, Form 5472 requirements, and franchise tax deadlines. Its Registered Agent service also helps non-US founders maintain the mandatory registered address required for their LLC.