Limitations and Flexibility of U.S. Company Registration for Individual Accounts How Much Do You Know?

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In today's globalized business environment, an increasing number of individual entrepreneurs and freelancers are looking to expand their operations through overseas platforms. As one of the most dynamic economies in the world, the United States has drawn significant attention for its corporate registration system. In recent years, with the rise of remote work and the digital nomad lifestyle, many individuals aim to enhance their international image, attract overseas clients, or lay the groundwork for future business development by incorporating in the U.S. However, while the U.S. system offers flexibility, it also comes with certain restrictions regarding personal ownership of corporate accounts. Understanding these rules is crucial for individuals considering setting up a company in the United States.

1. Basic Forms of U.S. Company Registration

When registering a company in the U.S., individuals can choose from several legal entity types, including Sole Proprietorship, Limited Liability Company LLC, and S Corporation. Among these, the LLC is the most popular option for individual entrepreneurs due to its strong flexibility in liability protection and tax treatment. According to data from the U.S. Small Business Administration, the number of new LLC registrations has continued to grow over the past five years, with a 12% increase in 2025 compared to the previous year. This reflects a growing trend among individual entrepreneurs to protect personal assets while benefiting from a streamlined management process.

2. Limitations for Individual Registration of U.S. Companies

Despite the openness of the U.S. corporate registration system, there are several limitations for individuals, particularly in terms of tax identification, residency requirements, and the ability to open bank accounts.

First, individuals typically need a valid Employer Identification Number EIN to register a U.S. company. For non-U.S. residents, obtaining an EIN can be a complex process. According to the IRS, non-residents can apply using Form SS-4, but in practice, they often must provide detailed company information and contact details, which can pose a barrier for some entrepreneurs.

Second, certain states require the appointment of a Registered Agent located within the state. For example, both Delaware and California require companies to designate a local agent responsible for receiving legal documents and notices. This means that individuals who do not reside in the U.S. may need to pay for third-party agent services, increasing the overall cost of registration.

Opening a bank account also presents a major challenge. While some U.S. banks allow non-residents to open corporate accounts, they often require in-person verification within the U.S. In recent years, stricter anti-money laundering regulations have made banks more cautious about non-resident accounts. For instance, JPMorgan Chase updated its international account-opening policy in 2025, requiring additional documentation and business information, which has made the process more difficult for individual entrepreneurs.

3. Flexibility Advantages of U.S. Company Registration

Despite these limitations, the U.S. company registration system remains highly flexible, particularly in terms of corporate structure, tax planning, and operational freedom.

First, the requirements for setting up an LLC are relatively low. Many states allow individuals to register an LLC at minimal cost. For example, in Wyoming, the registration fee is only $100, and there is no state-level corporate income tax. These low barriers have attracted a large number of international entrepreneurs to register in such business-friendly states.

Second, the U.S. tax code offers various options for tax optimization. By default, LLCs are taxed as sole proprietorships, but as the business grows, they can elect to be taxed as an S Corporation, which often results in a lower tax rate. Additionally, the U.S. has signed tax treaties with multiple countries to avoid double taxation, which is especially beneficial for individuals operating across borders.

Third, the U.S. legal system is relatively robust and provides a strong environment for legal protection. According to the World Bank's Doing Business report, the U.S. consistently ranks highly in contract enforcement and investor protection. This legal framework enhances trust among investors and clients, helping individual entrepreneurs build long-term and stable business relationships.

4. Trend Analysis Remote Work Driving Internationalization of Personal Businesses

In recent years, the growing popularity of remote work has significantly accelerated the internationalization of individual entrepreneurs. According to a Forbes report from early 2025, more than 60% of freelancers are either considering or have already incorporated in the U.S. to access broader market opportunities. At the same time, technology and financial service platforms are increasingly offering one-stop company registration services for non-residents. For example, Stripe and LegalZoom have launched LLC registration solutions tailored for international users, simplifying the process and lowering entry barriers.

Some U.S. states are also proactively adjusting policies to attract more international entrepreneurs. For instance, in 2025, Florida announced tax incentives and startup subsidies for remote entrepreneurs, further enhancing its appeal as a destination for global business.

5. Conclusion

In summary, while there are certain restrictions on personal ownership of U.S. corporate accounts, the system also offers a high degree of flexibility. For individual entrepreneurs aiming to expand into international markets, understanding relevant regulations and strategically selecting the state and type of company to register are key to successfully establishing a U.S. business. As remote work and digital commerce continue to grow, it is likely that the U.S. will introduce more favorable policies to attract international entrepreneurs-making it an area worth continued attention and exploration.