Requirements to Start a Company in the U.S. A Comprehensive Analysis

What Are the Requirements for Starting a Business in the United States? A Comprehensive Guide

In recent years, as global economic integration deepens, more and more entrepreneurs and business owners have turned their attention to the U.S. market. As one of the most dynamic and open economies in the world, the United States offers significant advantages in attracting foreign investment, fostering entrepreneurship, and providing legal protections. In particular, in 2025, the U.S. further optimized its business registration process and simplified some procedures, offering greater convenience to entrepreneurs.

So, what are the actual requirements for starting a business in the U.S.? This article will provide a comprehensive analysis from the perspectives of legal structure, taxation, registration procedures, and visas.

1. Determine the Company Structure

The first step in setting up a business in the U.S. is choosing the appropriate company structure. Common types include

Sole Proprietorship

Partnership

Limited Liability Company LLC

C Corporation C Corp

S Corporation S Corp

Each type comes with different implications for taxes, liability, and registration requirements.

For example, Limited Liability Companies LLCs are popular among many entrepreneurs due to their flexibility and tax advantages. LLCs offer limited liability protection while allowing owners to report business income on their personal tax returns, avoiding double taxation.

In contrast, C Corporations are more suitable for companies planning to raise large amounts of capital or go public. However, they are subject to double taxation-both at the corporate level and on individual shareholders’ income.

2. Choose a State for Registration

The U.S. is a federal system, and each state has its own commercial laws. Entrepreneurs must choose a state to register their company. Currently, Delaware, Nevada, and Wyoming are among the most popular choices due to their business-friendly legal frameworks, favorable tax policies, and streamlined registration processes.

Delaware is known for its well-developed corporate law system and business-friendly judiciary. Over half of all publicly traded companies and two-thirds of Fortune 500 companies are incorporated there.

Nevada is popular for its lack of corporate and personal income taxes, as well as strong privacy protections, making it an ideal choice for many startups.

3. Registration Process and Legal Requirements

Registering a company in the U.S. typically involves the following steps

1. Company Name Search and Registration Ensure the chosen name is available in the selected state and complies with state laws.

2. File Articles of Incorporation or Articles of Organization Submit documents to the state, outlining the company structure, shareholder information, and business purpose.

3. Appoint a Registered Agent Each company must designate a registered agent in the state to receive legal documents and official notices.

4. Obtain an Employer Identification Number EIN Issued by the Internal Revenue Service IRS, this number serves as a tax ID for the business.

5. Open a U.S. Bank Account While not mandatory, having a local bank account facilitates business operations and financial management.

Depending on the industry, additional licenses or permits may be required. For instance, businesses in sectors such as food, healthcare, and finance often require additional regulatory approvals.

4. Tax Requirements and Compliance

The U.S. tax system is relatively complex. Companies must pay federal, state, and local taxes depending on their structure and operations.

Foreign investors should also consider tax treaties between the U.S. and their home country to avoid double taxation.

According to the IRS

C Corporations are subject to corporate income tax.

S Corporations, LLCs, and Partnerships are generally taxed under a pass-through system, meaning the business itself doesn’t pay income tax, and profits are taxed at the individual level.

Businesses must also file regular financial reports, annual reports, and maintain complete accounting records. Most states require annual reports and the payment of annual fees. Failure to comply may result in fines or the termination of the company’s status.

5. Visa and Immigration Requirements

For foreign entrepreneurs, legal residency and work authorization are crucial. The U.S. does not have a specific entrepreneur visa, but several visa options are suitable for business owners

E-2 Treaty Investor Visa Available to nationals of countries with investment treaties with the U.S. Applicants must invest in and actively manage a U.S. business.

L-1 Visa Designed for intracompany transfers, ideal for entrepreneurs who have established a company abroad and wish to open a U.S. branch.

O-1 Visa for Extraordinary Ability For individuals with exceptional achievements in science, arts, education, or other fields.

EB-5 Investor Visa Although primarily aimed at immigrant investors, it is also an option for high-net-worth individuals.

In 2025, U.S. Citizenship and Immigration Services USCIS introduced a new rule allowing eligible entrepreneurs to apply for temporary work authorization through the Startup Visa Parole Program, significantly lowering the entry barrier for international founders.

6. Additional Considerations

Beyond the basic requirements, entrepreneurs should also keep the following in mind

Intellectual Property Protection The U.S. has a robust system for registering and protecting trademarks, patents, and copyrights. It’s advisable to register IP early to avoid future disputes.

Employment Law Compliance If hiring employees, businesses must comply with federal and state labor laws, including minimum wage, overtime, benefits, and working hours.

Business Insurance Acquiring appropriate insurance e.g., liability, property can help mitigate business risks.

Conclusion

Starting a business in the United States is a comprehensive and multifaceted process involving legal, tax, registration, and immigration considerations. While the process may seem complex, the U.S. offers a mature business environment and a strong legal framework that provide entrepreneurs with significant opportunities for growth.

With careful planning, strategic selection of company structure and registration state, and adherence to legal and tax requirements, establishing a successful business in the U.S. is entirely achievable.