U.S. Company Registration Tax Filing

Understanding U.S. Company Registration and Tax Filing? Check Here for the Latest Regulations!

In recent years, with the acceleration of globalization and the rapid development of the cross-border e-commerce industry, more and more Chinese companies and entrepreneurs have turned their attention to overseas markets, especially the United States - the world’s largest economy. In this context, registering a U.S. company has become one of the key options for businesses looking to expand internationally. However, for entrepreneurs new to overseas markets, the registration process, tax filing requirements, and compliance obligations for U.S. companies can often be confusing.

According to data from the U.S. Department of Commerce cited in media reports in 2025, the number of newly registered companies in the U.S. increased by more than 8% year-on-year in 2025, with a significant number of investors coming from Asia. This indicates that despite the complex and volatile global economic environment, the U.S. market remains highly attractive. At the same time, the U.S. continues to optimize its business environment and improve the convenience of company registration and management.

I. Basic Process for Registering a U.S. Company

Registering a company in the U.S. is relatively flexible and largely depends on the state in which the business owner wishes to register. Laws and tax policies vary by state, making the selection of the right location crucial. Commonly chosen states include Delaware, Nevada, and California.

1. Choose a Company Structure

The most common forms of business entities are Limited Liability Company LLC, Corporation, and Partnership. Among these, LLCs are widely favored due to their clear liability separation and tax flexibility.

2. Register a Company Name

Ensure the selected name is not already in use and complies with state regulations.

3. File Registration Documents

Typically, this involves submitting the Articles of Incorporation or Operating Agreement to the state and paying the required fees.

4. Obtain an EIN Employer Identification Number

Issued by the Internal Revenue Service IRS, an EIN is a unique identifier for businesses in the U.S., similar to China’s Unified Social Credit Code.

5. Open a Bank Account

After registration, it is advisable to open a U.S. bank account to facilitate financial management.

II. Understanding the U.S. Corporate Tax System

Both the federal and state governments impose taxes on businesses, so companies must comply with multi-level tax regulations. Here are some key points

1. Federal Tax Filing

All U.S. companies must file annual tax returns with the IRS. Different types of businesses are subject to different tax rates and filing methods. For example, an LLC can choose to be taxed as a sole proprietorship, partnership, or corporation, offering flexibility that makes it popular among startups.

2. State Tax Obligations

In addition to federal taxes, each state may impose income taxes, sales taxes, and other levies on businesses operating within its jurisdiction. For instance, California has a corporate income tax rate of 8.84% and also imposes a minimum tax. It is essential to understand the specific tax rates and incentives of the target state before registration.

3. Annual Reporting and Compliance Requirements

Most states require companies to submit annual reports and pay related fees. Businesses must also consider additional compliance factors such as employee hiring, intellectual property ownership, and cross-border transactions, all of which may impact tax treatment.

III. 2025 Updates and Key Considerations

In early 2025, the U.S. Department of the Treasury introduced the Corporate Transparency Act CTA, which requires nearly all companies to disclose beneficial ownership information to the Financial Crimes Enforcement Network FinCEN. Effective from January 1, 2025, this regulation applies to both newly formed and existing companies, aiming to combat money laundering and tax evasion.

According to reports from The Wall Street Journal, this new rule has had a significant impact on Chinese investors, particularly by adding a new information disclosure requirement to the registration process. When registering a U.S. company, it is important to prepare identification documents for shareholders, directors, and other relevant individuals in advance and ensure the accuracy and validity of the information provided.

Additionally, the IRS has intensified its oversight of foreign income in recent years. For Chinese companies with U.S. entities, income generated in the U.S. must be reported and taxed accordingly. At the same time, attention should be paid to the tax treaty between China and the U.S. to avoid double taxation.

IV. Conclusion

Registering a U.S. company is a significant step toward entering the North American market, but it comes with complex legal and tax challenges. In the current environment of tightening global regulations, businesses must prioritize compliance and strategically plan their tax structures. Whether it’s the registration process or tax filing, it is highly recommended to seek assistance from professional accountants or legal advisors to ensure smooth operations and mitigate potential risks.