How to Register a Company in the U.S.? Key Tax Policy Insights in One Article

How to Register a Company in the U.S. Understanding the Ins and Outs of American Tax Policies

In recent years, as globalization has accelerated, more entrepreneurs and investors have turned their attention to overseas markets-particularly the United States, one of the world’s largest economies. For businesses aiming to expand internationally, understanding how to register a company in the U.S. and navigating its complex tax policies are essential steps.

1. Why Register a Company in the U.S.?

The United States is not only one of the most dynamic markets globally but also offers a robust legal system, a mature business environment, and relatively transparent regulatory frameworks. According to data released by the U.S. Department of Commerce in 2025, foreign direct investment in the U.S. has grown for three consecutive years, particularly in technology, manufacturing, and retail sectors. Additionally, U.S. states offer flexibility in registration procedures and tax policies, providing diverse options for different types of businesses.

2. The Basic Steps to Register a Company in the U.S.

1. Determine the Type of Business Entity

Common business structures in the U.S. include

Limited Liability Company LLC

Corporation C Corp or S Corp

Partnership

Each structure has distinct implications for taxation and liability. For example, an LLC is typically treated as a pass-through entity for tax purposes, meaning the business itself doesn’t pay federal income taxes. Instead, profits pass through to the owners, who report them on their personal tax returns.

2. Choose a State for Registration

While companies can be registered in any U.S. state, many opt for Delaware or Nevada due to favorable business climates, including low corporate taxes, strong privacy protections, and well-established court systems.

3. Apply for a Company Name and File Registration Documents

Before proceeding, conduct a name search to ensure availability. Then, file the Articles of Incorporation for corporations or Articles of Organization for LLCs with the chosen state and pay the associated fees.

4. Obtain an Employer Identification Number EIN

An EIN, issued by the Internal Revenue Service IRS, functions like a social security number for a business. It is required for opening bank accounts, hiring employees, and filing taxes.

5. Open a Bank Account and Ensure Ongoing Compliance

After registration, establish a U.S. or offshore bank account. Maintain compliance by fulfilling annual reporting requirements, renewing business licenses, and staying up-to-date with state-specific regulations.

3. Understanding the U.S. Tax System

The U.S. tax framework is multi-layered, consisting of federal, state, and local taxes. Businesses must consider the following key areas

1. Federal Corporate Income Tax

Under IRS guidelines, the standard corporate income tax rate is 21%, a figure that has remained stable since the 2017 Tax Cuts and Jobs Act. However, certain entities, such as S Corporations, are taxed under a pass-through model, avoiding double taxation.

2. State Corporate Income Tax

Tax rates vary widely by state. For instance, California levies a corporate tax rate of up to 8.84%, while South Dakota and Wyoming impose no corporate income tax at all. When choosing a registration state, weigh both tax costs and operational convenience.

3. Sales Tax

Sales tax is imposed at the state level and varies from approximately 4% to 10%. Notably, it applies selectively-some goods like food, medicine, and books may be exempt.

4. International Tax Agreements

For multinational companies, U.S. tax treaties with other countries are crucial. While the U.S. and China do not have a comprehensive tax agreement, they do have cooperation clauses in specific sectors such as aviation and maritime transport. The U.S. operates a global taxation system, meaning U.S. citizens and resident corporations are taxed on worldwide income, whereas non-resident corporations are taxed only on U.S.-sourced income.

4. Recent Developments Trends in U.S. Tax Policy

According to a 2025 Wall Street Journal report, the U.S. Treasury is considering stricter tax oversight on cross-border digital service providers, especially Asian e-commerce platforms. This move aims to address tax challenges posed by the digital economy and prevent tax avoidance through offshore structures. Meanwhile, some lawmakers have proposed increasing the minimum tax rate for large corporations to help reduce the federal deficit. Although not yet enacted, this proposal has sparked widespread debate, signaling a potential trend toward tighter tax regulation in the future.

5. Conclusion

Registering a company in the U.S. is relatively straightforward, but mastering its intricate tax system is where the real challenge lies. Before making strategic decisions, entrepreneurs should thoroughly research the legal and regulatory landscape of their target market. Consulting qualified legal counsel or accounting professionals is highly recommended. Only by ensuring full compliance can businesses thrive in the U.S.-a land rich with opportunity.