How to Start a Business in the U.S. for Mainland Chinese A Complete Guide from Site Selection to Registration and Key Considerations

A Comprehensive Guide for Mainland Chinese Investors to Establish a Company in the United States From Site Selection to Registration

As globalization accelerates, an increasing number of Chinese mainland investors are turning their attention to overseas markets, particularly the United States-theworld’s largest economy. In recent years, commercial exchanges between China and the U.S. have remained active, with many mainland companies and individuals attempting to establish a presence in the U.S. to expand business operations, enhance brand visibility, and even lay the groundwork for children's education or family immigration. According to a 2025 Wall Street Journal report, despite fluctuations in U.S.-China trade relations, the number of Chinese investments in the U.S. continues to rise, particularly in the fields of technology, new energy, and cross-border e-commerce.

For mainland Chinese individuals considering starting a business in the U.S., understanding how to legally and compliantly establish a company is crucial. This article outlines the complete process for mainland investors setting up a company in the U.S., covering everything from initial planning, state selection, legal structure, registration procedures, to post-establishment operations-providing readers with a comprehensive and practical step-by-step guide.

1. Clarify Business Purpose and Market Positioning

Before deciding to start a business in the U.S., the first step is to clearly define your business purpose and market positioning. Are you setting up a subsidiary as a stepping stone into the global market? Or is it purely for asset allocation or tax optimization? Perhaps it is for future immigration or your children's education? Different objectives will directly influence the type of company you choose, the registration location, and the operational model.

For example, if you are primarily engaged in import/export trade or cross-border e-commerce, states like California or New York-known for their mature logistics systems and consumer markets-may be ideal choices. If your focus is on technology development, California home to Silicon Valley or Massachusetts might be more suitable.

2. Choose the Right State for Company Registration

The United States consists of 50 states, each with its own corporate laws, tax policies, registration costs, and administrative requirements. The most common choices for mainland investors include

Delaware Known for its investor-friendly corporate laws, Delaware is home to many large multinational corporations. It is suitable for businesses seeking external investment.

Nevada Offers no corporate or personal income tax and strong privacy protections, making it ideal for small to medium-sized enterprises.

California With a vibrant economy and large market size, California is suitable for companies with mature business plans, though it has relatively high tax rates.

Investors should select a state based on their industry characteristics, tax planning needs, and long-term strategy. Some states allow non-residents to serve as directors or shareholders, which is beneficial for mainland investors.

3. Determine the Legal Structure of the Company

There are several common legal structures for registering a company in the U.S.

1. Limited Liability Company LLC One of the most popular options. It offers liability protection, flexible tax treatment can be taxed as an S Corp or C Corp, and relatively simple management. It is ideal for startups and small businesses.

2. Corporation Divided into C Corps and S Corps. C Corps are suitable for companies planning to raise capital or go public, while S Corps are better for small businesses that benefit from pass-through taxation.

3. Branch Office If you already have a company in China, you can establish a branch in the U.S., but be aware that the parent company assumes legal liability for the branch.

Due to its flexibility and lower maintenance costs, the LLC is the most commonly chosen structure among mainland investors.

4. Prepare Required Documents and Information

To register a U.S. company, the following information is typically required

Company Name Must be unique.

Registered Address Can be provided by a registered agent.

Director/Shareholder Identification Some states do not require public disclosure.

Business Purpose A general description is often sufficient.

Registered Agent Information Required by most states.

Mainland investors do not need to travel to the U.S. in person. The entire registration process can be completed remotely through professional service providers. Many bilingual Chinese-English firms offer full-service support, including company registration, bank account opening, and EIN application.

5. Apply for an Employer Identification Number EIN

The EIN Employer Identification Number is essentially the company’s tax ID in the U.S. It is required for opening a bank account, filing taxes, hiring employees, and other business activities.

Mainland applicants can apply online via the IRS website or authorize a lawyer or accountant to apply on their behalf. When applying for an EIN, a Responsible Party must be designated-this person must have a valid SSN Social Security Number or ITIN Individual Taxpayer Identification Number. If a mainland individual does not have either, they may apply via a power of attorney.

6. Open a U.S. Bank Account

After the company is established, the next step is to open a corporate bank account. Due to strict U.S. financial regulations, mainland investors often find it difficult to open accounts directly at U.S. banks. Therefore, two common options are

1. Remote Account Opening Services Some international banks, such as Citibank and HSBC, offer remote account opening, or partner with local institutions to provide this service.

2. Third-party Service Providers Some firms offer pre-approval and video verification services to help clients complete the account opening process.

It is recommended to prepare documents such as the Articles of Incorporation, business license, and EIN certificate in advance, ensuring all documents are translated into English and notarized.

7. Tax Registration and Compliance

U.S. companies must comply with both federal and state tax regulations, including

Filing annual tax returns with the IRS e.g., Form 1120 or Form 1065

Paying state-level taxes such as sales tax and employer tax

Complying with transfer pricing and anti-avoidance regulations for cross-border transactions

It is highly recommended to hire a local accounting firm for tax planning and compliance to avoid penalties or legal risks due to unfamiliarity with the rules.

8. Additional Considerations

1. Annual Reporting and Compliance Most states require companies to file annual reports and pay annual fees. Failure to do so may result in the company being dissolved.

2. Intellectual Property Protection If you plan to establish a brand or develop patents, it is advisable to register trademarks or patents in the U.S. as early as possible.

3. Contract and Employment Standards U.S. labor laws are strict. Before hiring employees, it is important to understand relevant laws and, if necessary, consult a lawyer to draft employment contracts.

4. Cultural and Market Adaptation The U.S. market emphasizes branding, service, and compliance. Mainland companies should focus on localization strategies and respect consumer habits.

Conclusion

Establishing a company in the U.S. as a mainland Chinese investor may seem complex, but with proper planning, a well-chosen state and legal structure, and the assistance of professional service providers, it is entirely possible to set up and operate successfully in the U.S. As Sino-American business exchanges continue to deepen, more and more mainland entrepreneurs will step onto the global stage, realizing their dreams of international expansion.