Want to Start a Business in the U.S.? Must-Know Key Points!

Thinking of Registering a Company in the U.S.? Here Are Key Things You Must Know

In recent years, with the acceleration of globalization and the rise of cross-border e-commerce platforms, more and more Chinese companies and individuals have turned their attention to overseas markets-particularly the United States, one of the world’s largest consumer markets. According to the 2025 Global Entrepreneurship Trends Report, the U.S. remains one of the most attractive destinations for global entrepreneurs due to its mature business environment, robust legal system, and open market atmosphere, which continue to attract a large number of international investors.

However, despite the vast potential of the U.S. market, successfully registering and operating a company there is no easy task. For entrepreneurs entering the U.S. market for the first time, understanding and mastering several key considerations is crucial.

1. Choose the Right Business Structure

When registering a company in the U.S., the first decision involves selecting the appropriate legal structure. Common options include Limited Liability Company LLC, Corporation C Corp, and Partnership. These structures differ significantly in terms of taxation, liability, and management.

The LLC is often the preferred choice for startups and small-to-medium-sized businesses due to its tax flexibility, limited liability protection, and relatively simple setup process. On the other hand, a C Corporation is better suited for companies planning to raise capital or go public. Although it faces double taxation, it offers advantages in attracting foreign investment.

Recent news shows that many Chinese cross-border e-commerce sellers are choosing to register LLCs in Delaware due to the state's business-friendly legal environment and streamlined registration process. According to The Wall Street Journal, Delaware currently has over 1.8 million registered companies, including more than 60% of publicly traded companies in the U.S.

2. Select the Right State for Registration

The U.S. operates under a federal system, meaning each state has its own rules regarding company registration, taxation, and operational requirements. When deciding where to incorporate, businesses should not only consider where the headquarters will be located but also evaluate factors such as tax burden, operating costs, and business needs.

For example, while California is economically active, it imposes high corporate taxes. In contrast, states like Wyoming and Nevada are popular among international investors due to their lack of state-level corporate income tax and strong privacy protections. As previously mentioned, Delaware is also a top destination thanks to its well-developed corporate law and court system.

According to a July 2025 report by Bloomberg, due to favorable tax policies and improved business conditions, an increasing number of tech startups are setting up headquarters in Florida-especially in the Miami area-creating a new entrepreneurial hub.

3. Understand the U.S. Tax System

The U.S. tax system is complex, involving multiple layers federal, state, and local taxes. Foreign investors must clearly understand their tax obligations, including corporate income tax, sales tax, and employment tax.

One commonly overlooked issue is Effectively Connected Income ECI, which refers to income derived from substantial business operations conducted within the U.S. If applicable, this may trigger both federal and state tax liabilities. Additionally, the U.S.-China tax treaty can impact a company’s overall tax strategy, so consulting a professional tax advisor in advance is highly recommended.

As reported by CNBC in 2025, the Internal Revenue Service IRS has intensified enforcement against offshore companies failing to comply with reporting requirements, especially those that have not submitted Form W-8BEN on time. This serves as a reminder that tax compliance should never be ignored, as failure to do so can result in significant financial losses.

4. Open a U.S. Bank Account

After registering a company in the U.S., opening a local bank account is usually the next step. This is essential for managing daily transactions, receiving customer payments, and paying supplier invoices.

However, non-U.S. residents often find the process challenging. Major banks like Citibank and JPMorgan Chase impose strict requirements, including detailed company documentation, personal identification, and even in-person interviews. In contrast, some online banks and smaller community banks offer more flexible procedures and faster approvals.

Recently, reports indicated that several U.S. fintech firms have launched virtual banking services specifically designed for international entrepreneurs. These services allow remote account opening and multi-currency settlement, significantly facilitating cross-border business operations. While these tools are worth considering, users should still ensure they are secure and compliant with regulatory standards.

5. Comply with Legal and Regulatory Requirements

The U.S. has a highly developed legal framework, which means businesses must strictly adhere to various regulations during operations. For instance, when hiring employees, companies must follow the Fair Labor Standards Act FLSA. Advertising must align with Federal Trade Commission FTC guidelines, and product sales must meet Consumer Product Safety Commission CPSC standards.

Particularly important are the stringent Anti-Money Laundering AML and Know Your Customer KYC requirements imposed on foreign businesses. Failure to comply can lead to heavy fines or even criminal charges. It is therefore advisable for companies to establish a solid compliance system early on and conduct regular internal audits.

In June 2025, a China-based e-commerce platform was fined millions of dollars by the Securities and Exchange Commission SEC for failing to meet compliance obligations-an incident that drew widespread attention. This case underscores the fact that compliance is not optional; it is a prerequisite for survival in the U.S. market.

6. Utilize Professional Services

Registering a company in the U.S. is a comprehensive process involving legal, financial, and tax considerations. For foreign investors unfamiliar with the local environment, relying on professional service providers can significantly reduce barriers and risks.

Whether choosing a registered agent, accounting firm, or legal counsel, priority should be given to those with proven expertise and positive client reviews. Additionally, resources from organizations such as the American Chamber of Commerce and the International Trade Association can provide valuable guidance and support.

According to Forbes, an increasing number of international entrepreneurs are turning to one-stop platforms to handle everything from company registration to ongoing operations. These platforms save time and help ensure full compliance at every stage.

Conclusion

While the U.S. market presents immense opportunities, it also comes with considerable challenges. From choosing the right business structure to ensuring tax compliance, from opening a bank account to mitigating legal risks-each step requires careful planning and execution.

Only by thoroughly understanding the landscape and preparing adequately can entrepreneurs confidently establish a foothold in this competitive yet rewarding market and achieve long-term success.