US Company Registration Must-Know Key Taxes You Need to Understand!

What Taxes Should You Know When Registering a Company in the United States? An In-Depth Analysis

As global economic integration accelerates, more entrepreneurs and investors are setting their sights on the U.S. market. Whether you're launching a startup or managing a multinational corporation, choosing to register your business in the United States has become a growing trend. However, the U.S. tax system is complex and ever-changing. For investors new to the American market, understanding various types of taxes is essential not only for compliance but also for minimizing risks and optimizing your tax structure.

This article explores the major federal and state-level taxes in the U.S., incorporating recent news updates to provide a comprehensive guide for companies planning to establish operations in the country.

1. Federal Income Tax The Foundation of Corporate Taxation

One of the most fundamental and significant taxes in the U.S. is the Federal Corporate Income Tax. According to the Internal Revenue Service IRS, C Corporations C Corps are subject to corporate income tax, which currently stands at a flat rate of 21%, following the 2017 Tax Cuts and Jobs Act. This reduction has made the U.S. an attractive destination for foreign investment.

However, pass-through entities such as S Corporations S Corps, partnerships, and limited liability companies LLCs do not pay corporate income tax directly. Instead, profits pass through to the shareholders or partners, who report them on their individual tax returns and pay taxes at personal income tax rates. This structure is especially common among small and medium-sized businesses.

News Update

In early 2025, the Wall Street Journal reported that the U.S. Treasury was considering raising taxes on large corporations to address budget deficits. Although no final decision has been made, businesses should monitor policy developments closely when planning their tax strategies.

2. State Corporate Income Tax Significant Variations Across States

In addition to federal taxes, many U.S. states impose their own State Corporate Income Taxes. Rates vary widely from state to state. For example

California levies one of the highest corporate income tax rates at 8.84%.

Texas does not impose a traditional corporate income tax but collects a Franchise Tax based on revenue.

Nevada, South Dakota, and Wyoming do not collect any corporate income tax at all.

When selecting a location for your business, the local tax environment is a critical factor. Many tech startups and corporations choose to incorporate in Delaware due to its well-developed legal framework and favorable tax policies.

News Update

In May 2025, California announced plans to increase tax rates for high-tech firms to fund education and infrastructure projects. This move has prompted some companies to consider relocating to states with lower tax burdens.

3. Sales and Use Tax Applicable to Goods and Services Transactions

Sales Tax is imposed on the sale of goods or services and is typically paid by consumers, although businesses are responsible for collecting and remitting it. There is no national sales tax in the U.S.; instead, each state sets its own rate, and some counties or municipalities may add additional taxes.

With the rapid growth of e-commerce, remote sales taxation has become increasingly important. By the end of 2025, several U.S. states had strengthened enforcement of sales tax collection on online platforms, requiring these platforms to assist sellers in reporting and paying taxes.

News Update

Major e-commerce platforms like Amazon have partnered with state tax authorities to automatically calculate and collect sales tax from consumers. While this reduces the administrative burden on small sellers, it also raises compliance expectations.

4. Employment Taxes Mandatory Costs for Hiring Staff

If your company hires employees in the U.S., you must pay various Employment Taxes, including

Federal Insurance Contributions Act FICA taxes, which fund Social Security and Medicare;

Federal Unemployment Tax Act FUTA and State Unemployment Tax Act SUTA taxes;

Withholding taxes on employee wages.

These taxes are generally shared between employers and employees, with companies required to deduct and remit them during payroll processing. In emerging areas such as remote work and freelance labor, correctly classifying employees versus independent contractors is crucial for maintaining tax compliance.

News Update

In the first quarter of 2025, California’s labor department launched investigations into several tech firms over alleged misclassification of full-time employees as independent contractors to avoid employment tax obligations.

5. Property Tax and Business License Fees Local-Level Expenses

Some states and municipalities impose Property Tax on real estate owned by businesses, such as office buildings or factories. This is often an annual fixed cost. Additionally, most cities require businesses to obtain a Business License, with fees ranging from tens to thousands of dollars depending on the industry and size of the business.

While these costs don’t constitute the main tax burden, they should still be factored into financial planning-especially for small businesses and sole proprietors, where cash flow management is vital.

6. International Tax Issues Special Considerations for Cross-Border Operations

U.S. companies engaged in international business must also navigate cross-border tax rules, such as Transfer Pricing and regulations governing Controlled Foreign Corporations CFCs. Recently, the U.S. has actively participated in the OECD-led global minimum tax initiative, which requires multinational enterprises to pay at least 15% corporate income tax in every jurisdiction where they operate.

News Update

In April 2025, major multinationals such as Apple and Google began adjusting their overseas profit structures to comply with the new global minimum tax rules and avoid potential back taxes.

Conclusion

Registering a company in the United States is a comprehensive process, with tax planning playing a central role throughout the business lifecycle. From federal to state and local levels, the interplay of different tax systems can be complex. Companies should build a clear understanding of their tax obligations from the outset and seek advice from qualified accountants or tax advisors to develop sound tax strategies.

Only with careful planning and proactive compliance can businesses successfully operate in one of the world's most dynamic economies and achieve long-term, sustainable growth.