Want to Start a Company in the U.S.? Know These Reg. Requirements!

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

In recent years, with globalization deepening and Sino-U.S. economic exchanges becoming increasingly frequent, more and more Chinese entrepreneurs, startups, and small business owners have begun to look toward overseas markets. As one of the world's largest economies, the United States offers a mature business environment, a robust legal system, and vast market opportunities, making it a top destination for companies seeking global expansion.

According to data released by the U.S. Department of Commerce in 2025, the number of foreign firms establishing branches in the U.S. has continued to grow over the past three years, with particularly active investment from Asian countries. This trend is especially evident in sectors such as technology, e-commerce, and new energy, where Chinese enterprises are gradually strengthening their presence in the U.S. market.

If you're also considering registering a company in the U.S., here are the key conditions you must understand

1. Choose the Right Business Structure

The first step in setting up a company in the U.S. is choosing an appropriate business structure. Different structures vary significantly in terms of taxation, liability, and management style. The most common types include

1. Limited Liability Company LLC

This is the most popular option among foreign investors. An LLC offers flexible management, limited liability protection owners are only liable up to their investment, and pass-through taxation-meaning the company itself does not pay corporate income tax. Instead, profits are reported on the owners' personal tax returns.

2. Corporation C Corp

Suitable for businesses planning large-scale fundraising or potential public listing. However, C Corps face double taxation profits are taxed at both the corporate level and again when distributed to shareholders as personal income.

3. S Corporation S Corp

Similar to an LLC in terms of pass-through taxation, ideal for small businesses. However, there are restrictions on the number and type of shareholders.

For most Chinese investors, especially in the early stages, an LLC is often the best choice due to its balance of risk control and tax simplicity.

2. Determine the State of Registration

The U.S. operates under a federal system, meaning each state has its own rules regarding company registration, taxes, and incentives. Choosing the right state depends on your business nature and long-term strategy.

Currently, Delaware, Nevada, and Wyoming are the most popular states for foreign investors

Delaware Known for its well-developed corporate law and business-friendly environment. Over 60% of publicly traded companies in the U.S. are incorporated here.

Nevada Offers no state corporate or personal income tax, along with strong privacy protections.

Wyoming Also has no state corporate income tax and low annual reporting fees.

However, if your primary business activities will take place in a specific state, it’s generally advisable to register there to avoid additional compliance costs associated with doing business across multiple states.

3. Meet Basic Registration Requirements

Although the U.S. allows foreigners to register businesses, several requirements must be met

Unique Company Name Your business name must be distinct and not already registered in the chosen state. A name search can usually be conducted via the state’s official website.

Registered Agent Every U.S. company must appoint a registered agent responsible for receiving legal documents. The agent must be a resident of the state or have a physical office there.

Filing Documents These typically include Articles of Organization for LLCs or Certificate of Incorporation for corporations, along with the required filing fee.

Employer Identification Number EIN Similar to China’s Unified Social Credit Code, this is used for tax identification. Even without employees, obtaining an EIN is recommended for opening bank accounts and managing financial affairs.

Some states also require annual reports and fees to maintain good standing.

4. Prepare for Tax and Compliance Obligations

Tax planning is critical when operating in the U.S. In addition to federal taxes, you must also consider state and local taxes. It’s highly recommended to consult with a qualified accountant or attorney to develop a sound tax strategy.

Other important compliance areas include

Anti-Money Laundering AML regulations

Export controls

Data privacy laws such as the California Consumer Privacy Act CCPA

Businesses in high-tech, biotech, or other sensitive industries should carefully assess whether they deal with controlled technologies or goods.

5. Open a Bank Account and Manage Funds

After registration, the next step is to open a U.S. bank account. While some banks allow non-residents to open accounts remotely, most require in-person visits or authorized representatives.

Typical documentation includes

Proof of company registration

EIN number

Identity verification of directors or authorized signers

Copy of company bylaws or operating agreement

Managing cross-border capital flows requires careful attention to foreign exchange regulations. Proper planning around repatriation and reinvestment strategies is essential.

Conclusion

In the era of globalization, the United States remains one of the most attractive investment destinations. For Chinese entrepreneurs and SMEs aiming to expand internationally, understanding the core requirements for registering a U.S. company is crucial-not just to mitigate legal risks, but also to lay a solid foundation for long-term growth.

With thorough research, strategic planning, and professional support, setting up a U.S. company is entirely achievable.