Want to Start a Company in the U.S.? Ultimate Guide on Fund Doc Prep!

How to Register a Company in the U.S. A Must-Know Guide on Funds and Documentation

In recent years, with the acceleration of global economic integration, more entrepreneurs, small and medium business owners, and investors are turning their attention to the U.S. market. As one of the most dynamic and open economies globally, the United States attracts numerous international businesses due to its robust legal system, mature commercial environment, and diverse consumer base.

According to a 2025 report by The Wall Street Journal, the number of foreign companies registered in the U.S.-especially from China, India, and the Middle East-rose by over 15% year-on-year. This trend reflects not only confidence in the U.S. market but also a positive response to the country's increasingly streamlined regulatory policies.

However, despite growing transparency in the registration process, there are still many important details that first-time investors should understand thoroughly-particularly when it comes to financial planning and document preparation.

1. Common Types of U.S. Companies and Selection Advice

Before registering a company in the U.S., it’s essential to determine the appropriate business structure. The most common types include

Limited Liability Company LLC Ideal for small to mid-sized businesses, offering tax flexibility and limited liability protection for members.

C Corporation C Corp Suitable for companies seeking funding or planning an IPO, though subject to double taxation.

S Corporation S Corp Offers pass-through taxation at the personal level but is limited in terms of shareholder numbers and qualifications.

Partnership and Sole Proprietorship Simple structures without liability separation between the business and owner.

According to data released by the U.S. Department of Commerce in 2025, more than 60% of foreign-invested enterprises choose LLCs, as they strike a good balance between management flexibility, tax optimization, and legal liability protection.

2. Budgeting for Registration Costs

The total cost of registering a U.S. company varies by state and includes the following components

1. State Filing Fees

California $85 initial fee for LLC registration, plus an annual minimum tax of $800.

Texas Approximately $300 for LLC registration, with no minimum annual tax.

Delaware Registration costs around $90; although slightly higher, Delaware is preferred by many large firms due to its mature legal system and strong confidentiality protections.

2. Registered Agent Service Fee

Foreign entities must appoint a U.S.-based registered agent to receive legal documents. Annual service fees typically range from $100 to $300.

3. Federal Tax ID EIN Application

The IRS issues EINs free of charge, which are used for tax reporting, opening bank accounts, and other official purposes.

4. Legal or Professional Service Fees

If hiring a lawyer or agency to assist with drafting articles of organization or filing documents, costs can range from hundreds to thousands of dollars.

5. Bank Account and Related Fees

Opening a corporate account may require an initial deposit, and some banks impose monthly maintenance charges.

The total startup cost for an LLC generally falls between $500 and $2,000, depending on the state and whether professional services are outsourced.

3. Required Documents for Registration

To complete the registration successfully, applicants must prepare the following core materials

1. Company Name Search and Reservation

Ensure the chosen name is unique and complies with state naming rules e.g., ending with LLC.

2. Articles of Organization or Certificate of Formation

This key document submitted to the state includes the company’s name, address, business purpose, and member information.

3. Operating Agreement

While not mandatory in all states, it is highly recommended to define ownership shares, management structure, and profit distribution methods.

4. Registered Agent Information

Must include the agent’s name and address, often provided by third-party service providers.

5. Identification Documents

Foreign individuals or shareholders must submit passport copies and proof of residence for background verification.

6. EIN Application Form Form SS-4

Can be completed online, by mail, or via fax.

7. Business Licenses and Permits

Depending on the industry, additional licenses may be required-for example, food service permits for restaurants or sales tax IDs for retail operations.

4. Tax and Compliance Considerations

Taxation is a critical factor in operating a U.S. business. According to IRS guidelines, different business structures are taxed differently

LLCs can choose to be taxed as either sole proprietorships or corporations.

C Corps are subject to corporate income tax, and shareholders pay taxes again on dividends double taxation.

S Corps offer pass-through taxation to avoid double taxation, but eligibility conditions apply.

Companies must also comply with state-level taxes such as sales tax, employment tax, and property tax. For instance, California imposes a sales tax of up to 10%, while Oregon has no sales tax at all-both significantly affecting site selection decisions.

Additionally, annual reports must be filed on time along with applicable fees. Failure to do so may result in penalties or even revocation of the company’s active status.

5. Conclusion

Amid the evolving global economic landscape, the U.S. remains one of the most attractive destinations for investment. Whether expanding into overseas markets, seeking capital financing, or leveraging a strong legal framework to protect business interests, establishing a U.S. company is a strategic decision worth serious consideration.

However, success doesn’t stop at registration-it hinges on thorough financial planning and document preparation beforehand. Only by understanding the full scope of costs, preparing necessary documents accurately, and becoming familiar with tax and compliance obligations can you confidently navigate the competitive U.S. market.

If you're considering launching a new venture in the U.S., start today by organizing these essential elements and laying a solid foundation for future success.