Want to Start a Business in the U.S.? Key Requirements You Must Know!

Thinking of Registering a Company in the U.S.? Here Are the Key Requirements You Can’t Afford to Miss!

In recent years, with the acceleration of globalization and the rapid growth of cross-border e-commerce, an increasing number of Chinese entrepreneurs have turned their attention to overseas markets-particularly the United States, one of the world's largest and most mature economies. According to data released by the U.S. Department of Commerce in the first quarter of 2025, the U.S. remains the top destination for foreign investment. Its open market, robust legal system, and well-developed business infrastructure continue to make it a top choice for entrepreneurs and investors worldwide.

If you're planning to register a company in the U.S., there are several key requirements and considerations you must not overlook before taking the plunge.

1. Choose the Right Business Structure

One of the first decisions you'll need to make is choosing the appropriate business structure. Common options include

LLC Limited Liability Company The preferred choice for most startups and small to medium-sized businesses. An LLC combines the liability protection of a corporation with the tax flexibility of a partnership, making it ideal for entrepreneurs seeking to simplify management and limit personal risk.

C-Corporation C-Corp Suitable for businesses planning to raise capital, go public, or attract foreign investment. While C-Corps are taxed as separate entities-which can lead to double taxation-their structure is more conducive to complex financial operations.

S-Corporation S-Corp A favorable option for small businesses due to its tax advantages. However, it comes with restrictions on the number and type of shareholders.

Partnership and Sole Proprietorship Ideal for individual entrepreneurs or small partnerships. However, these structures carry higher personal liability risks.

Each structure has different implications for taxation, liability, and management. Choose based on your business model and long-term goals.

2. Determine the State and Company Name

The U.S. is a federal system, meaning each state has its own corporate registration laws. You’ll need to decide where to register your company. States like Delaware and Nevada are popular among foreign investors due to their business-friendly legal environments, flexible tax systems, and strong privacy protections.

Your company name must be unique and not already in use. You can check name availability through the Secretary of State website of your chosen state.

3. Registration Process and Required Documents

The general steps for registering a U.S. company include

1. File Articles of Incorporation or Certificate of Formation These are the legal documents required to officially establish your company with the state.

2. Draft Bylaws or Operating Agreement Though not mandatory, these documents are crucial for outlining internal governance.

3. Apply for an EIN Employer Identification Number This is the company’s tax ID, necessary for tax filings and opening a bank account.

4. Register for a State Tax ID Required if your business operates within a specific state.

5. Open a U.S. Bank Account Essential for business operations, though not mandatory.

Additionally, as of January 1, 2025, under the Corporate Transparency Act CTA enforced by the U.S. Treasury’s Financial Crimes Enforcement Network FinCEN, nearly all newly formed companies must report beneficial ownership information. This is a major regulatory development aimed at combating money laundering and increasing transparency.

4. Tax and Compliance Obligations

The U.S. tax system is complex. After registration, you must comply with

Federal Tax C-Corps are subject to corporate income tax, while LLCs and S-Corps follow pass-through taxation, where profits are taxed on the owners’ personal returns.

State Tax Varies by state. For example, California levies a corporate tax rate of up to 8.84%, while Nevada has no corporate income tax.

Sales Tax If you sell goods or services in the U.S., you may need to collect and remit sales tax based on your state’s rules.

Additionally, most states require annual reports and fees. Failure to comply may result in penalties or even dissolution of your company.

5. Hiring Employees and Visa Considerations

If you plan to operate long-term in the U.S. and hire local staff, you must comply with U.S. labor laws, including minimum wage, overtime pay, and social security contributions.

For foreign entrepreneurs wishing to work in the U.S., appropriate business visas such as the E-2 Treaty Investor Visa or L-1 Intracompany Transferee Visa may be required.

6. Intellectual Property Protection and Contract Management

In a highly regulated and litigious environment like the U.S., protecting your intellectual property IP is crucial. If your brand, product, or technology is unique, consider registering trademarks, patents, or copyrights soon after incorporation.

Always formalize business relationships through written contracts to clearly define rights and responsibilities and avoid potential legal disputes.

Conclusion

The U.S. market offers tremendous opportunities, but registering a company is not a simple or quick process. From selecting the right business structure to navigating complex tax and compliance requirements, each step demands careful planning and execution.

In today’s increasingly regulated environment, understanding the rules and preparing thoroughly will help ensure a smoother, more sustainable journey for your U.S. entrepreneurial venture.