Want to Start a Business in the U.S.? Know These Key Requirements for a Smooth Start!

Thinking of Registering a Company in the U.S.? Know These Key Requirements to Get Your Business Off to a Strong Start

In recent years, as globalization continues to deepen, more and more entrepreneurs have turned their attention to overseas markets-particularly the United States, known for its mature business environment and well-established legal system. According to the latest data from 2025, the number of newly registered companies in the U.S. continues to grow steadily. In the first quarter alone, over 1.5 million new businesses were registered-an increase of approximately 8% compared to the same period last year. For foreign investors planning to operate in the U.S., understanding and mastering the basic procedures and key requirements for company registration is the first step toward successful entrepreneurship.

1. Determine Your Company Type Choose the Right Legal Structure

When registering a company in the U.S., the first decision you need to make is selecting the appropriate legal structure. Common types include Sole Proprietorship, Partnership, Limited Liability Company LLC, and Corporation. Each type has different implications in terms of taxation, liability, and management structure.

Among these, LLCs are particularly popular among startups and small to medium-sized businesses due to their flexibility, limited liability protection, and relatively simple tax treatment. For example, a report released by California at the end of 2025 showed that LLC registrations had grown the fastest over the past three years, accounting for nearly 60% of all new business registrations in the state. This indicates that LLCs have become the preferred choice for many entrepreneurs.

2. Choose the Right State Location Matters for Growth

The United States is a federal country, and each state has its own independent regulations for company registration. Before incorporating, it’s important to choose a state that aligns with your business needs.

While Delaware remains a popular choice for large corporations due to its favorable business laws, mature judicial system, and low corporate tax rates, startups or small businesses may benefit more from registering in the state where they will actually operate. This can help reduce compliance costs and administrative burdens.

Take tech startups as an example-California, home to Silicon Valley, remains one of the top choices for technology-based ventures. According to a Wall Street Journal article published early in 2025, despite its higher tax rates, California continues to be one of the most concentrated regions for tech startups due to its robust technology ecosystem and capital aggregation effect.

3. Apply for an Employer Identification Number EIN

Regardless of the company type, if you plan to hire employees, open a bank account, or file taxes in the U.S., you must apply for an Employer Identification Number EIN issued by the Internal Revenue Service IRS. This number acts as your company's unique identifier and is essential for tax reporting, opening bank accounts, and other official purposes.

Applying for an EIN can now be done online through the IRS website, making the process fast and straightforward-often completed within minutes. Notably, non-U.S. residents can also apply for an EIN, but they must provide valid personal or company information and complete the identity verification process.

4. Registration Process and Document Preparation

Although the exact steps for registering a company vary by state, the general process typically includes the following

1. Company Name Search and Registration Ensure your chosen business name is available and not already taken.

2. Filing Required Documents Such as Articles of Incorporation for Corporations or Articles of Organization for LLCs.

3. Paying Registration Fees These vary by state, ranging from tens to hundreds of dollars.

4. Obtaining Licenses or Permits Depending on the industry-such as food service or healthcare-you may need additional permits.

5. Opening a Corporate Bank Account It's advisable to set up a business bank account early to begin financial operations.

If you're a foreign company setting up a branch or subsidiary in the U.S., you should also consider whether a U.S. entity is necessary, along with tax arrangements and compliance obligations. Consulting with a qualified attorney or accountant during this process is highly recommended to ensure full compliance with local laws.

5. Tax and Compliance Critical Aspects You Can’t Ignore

The U.S. tax system is complex and strictly enforced. After registration, your business must comply with tax regulations at the federal, state, and local levels. At the federal level, this primarily includes Corporate Income Tax, while states may impose additional taxes such as Sales Tax or Business License Tax.

Moreover, the U.S. places a high emphasis on corporate compliance, especially in areas like financial reporting, labor laws, and data privacy. For instance, in 2025, California passed the California Privacy Rights Act CPRA, which strengthened consumer data protection regulations. Any business operating in California must ensure that its data collection and usage practices comply with CPRA requirements.

6. Use Professional Services to Save Time and Reduce Risk

For first-time entrepreneurs looking to register a company in the U.S., navigating the complex legal language and administrative procedures can be overwhelming. Utilizing professional legal, accounting, or registered agent services can greatly simplify the process, improve efficiency, and help avoid potential risks.

In recent years, many third-party service providers have introduced comprehensive U.S. company registration packages, covering everything from company naming and document preparation to EIN applications and bank account setup. These services are especially valuable for international entrepreneurs who may lack time or experience.

Conclusion

Successfully registering and launching a business in the U.S. requires more than just understanding the basic procedures-it demands informed decisions tailored to your specific circumstances. Whether choosing the right business structure, selecting the ideal state, or managing tax and compliance issues, every step plays a crucial role.

By preparing thoroughly and seeking expert guidance when needed, you can position your business for success in one of the world's most competitive markets and lay a solid foundation for long-term growth on American soil.