Want to Start a Company in the U.S.? Must-Know Registration Requirements!

How to Register a Company in the U.S. Essential Requirements You Must Know

In recent years, as global economic integration has accelerated, more and more entrepreneurs and investors have turned their attention to overseas markets. The United States, as one of the world’s largest economies, attracts a large number of international entrepreneurs with its mature legal system, open market environment, and abundant resources. According to a 2025 report released by the U.S. Department of Commerce, the number of foreign businesses registered in the U.S. increased by more than 15% year-over-year in the past year, with particularly significant growth from Asian countries.

Despite the U.S.’s high ranking in terms of business environment, successfully registering a company locally still requires understanding and meeting a series of legal and procedural requirements. This article provides a practical guide for investors interested in setting up a company in the U.S., covering topics such as business structure options, basic requirements, necessary documentation, and tax obligations.

1. Choosing the Right Business Structure

When registering a company in the U.S., the first step is to determine the appropriate business entity. Different types of structures define the company's legal liability, tax treatment, and operational framework. Common business structures include

Limited Liability Company LLC This is the preferred option for many startups and small to medium-sized businesses. An LLC combines the limited liability protection of a corporation with the tax flexibility of a partnership, making it suitable for businesses with moderate risk and capital size.

Corporation C Corp Ideal for companies planning to raise capital or potentially go public in the future. C Corps are subject to corporate income tax, and shareholders must also pay taxes on dividends, leading to double taxation. However, this structure offers broader financing opportunities and greater appeal to international investors.

S Corporation S Corp A special type of corporation that allows profits to pass directly to shareholders, avoiding double taxation. However, S Corps come with strict eligibility requirements, such as a maximum of 100 shareholders who must be U.S. citizens or legal residents.

Partnership and Sole Proprietorship These structures are relatively simple but carry higher personal liability. They are better suited for small individual operators or short-term collaborative projects.

According to 2025 statistics from the Internal Revenue Service IRS, LLCs remain the most popular form of business registration, accounting for over 60% of newly registered companies.

2. Basic Registration Requirements

Although specific regulations may vary slightly by state, there are several general requirements for registering a company in the U.S.

1. Registered Address The company must have a legal address within the U.S. for receiving official correspondence and legal documents. If the investor resides outside the U.S., they can opt for a commercial registered agent service.

2. Company Name The chosen name must be unique and comply with state regulations. A name search is typically required to ensure it hasn't already been registered.

3. Registered Agent Most states require the appointment of a registered agent responsible for receiving legal documents and notifications. The agent can be an individual or a professional agency, but must have a physical office address in the state of registration.

4. Shareholder and Director Information Some states require disclosure of ownership details, including names and addresses. In recent years, due to stricter anti-money laundering regulations, federal authorities have also increased scrutiny of beneficial owners.

5. Business License and Industry Permits Depending on the industry and location, certain permits may be required-for example, in fields such as food services, medical device sales, or financial consulting.

3. Registration Process and Required Documents

The typical steps involved in registering a company in the U.S. are as follows

1. Choose the State of Registration Many businesses choose to register in Delaware, Nevada, or Wyoming due to their business-friendly legal environments and favorable tax policies. For instance, Delaware has a well-developed corporate law system, while Nevada does not impose corporate income tax.

2. File Articles of Incorporation or Articles of Organization These are formal legal documents needed to establish the company. They usually include the company name, registered address, registered agent information, and shareholder structure.

3. Apply for an EIN Employer Identification Number Similar to China’s Unified Social Credit Code, an EIN is a unique identifier assigned by the IRS for tax reporting and opening bank accounts.

4. Open a U.S. Bank Account While some states allow non-residents to open accounts remotely, it is often recommended to visit in person or appoint a representative.

5. Obtain Business Licenses and Permits Depending on the nature of the business, additional licenses may be required at the local level.

4. Tax and Compliance Obligations

The U.S. tax system is complex and multi-layered, encompassing federal, state, and local taxes. For foreign investors, the following considerations are especially important

Federal Income Tax Tax treatment varies depending on the business structure. For example, an LLC can elect to be taxed as an S Corp to avoid double taxation.

State Taxes Tax rates differ significantly across states. California, for instance, levies a corporate tax rate of up to 8.84%, whereas Nevada imposes no corporate income tax.

Sales Tax Companies engaged in selling goods must collect and remit sales tax based on both their location and the customer’s location.

Annual Reporting and Ongoing Compliance Most states require annual reports and associated fees; failure to comply can result in penalties or revocation of the business license.

Additionally, under the Anti-Money Laundering Act of 2025, most new companies must submit beneficial owner information to the Financial Crimes Enforcement Network FinCEN starting in 2025, aiming to enhance transparency.

5. Conclusion

The U.S. market presents immense opportunities, but it also comes with a complex legal and tax landscape. For entrepreneurs looking to establish a presence here, careful preparation, choosing the right business structure, and understanding registration procedures and compliance obligations are crucial first steps. It is highly recommended to seek assistance from qualified legal counsel or professional registration services to ensure the process is both lawful and efficient.

In today’s increasingly globalized economy, attention to detail is key to building a successful and sustainable business abroad.