Want to Start a Business in the U.S.? A Guide to Company Registration Process and Costs

Want to Start a Business in the U.S.? A Comprehensive Guide to Company Registration Processes and Costs

As globalization accelerates, more and more entrepreneurs are setting their sights on overseas markets-especially the United States, known for its mature business environment and robust legal system. For those aiming to launch a business in the U.S., understanding the registration process and associated costs is the crucial first step toward success. Drawing on recent news and developments, this article offers a detailed overview of the key steps and expenses involved in registering a company in the U.S., providing practical insights for aspiring entrepreneurs.

1. Advantages and Appeal of U.S. Company Registration

As one of the world’s largest economies, the U.S. boasts a well-established legal framework, efficient services, and a diverse market environment-making it a top destination for international entrepreneurs. According to a 2025 report from the U.S. Department of Commerce, the number of foreign businesses registered in the U.S. increased by 12% year-over-year, with a significant rise in investors from Asia, particularly China, India, and Vietnam.

Many U.S. states offer incentives to attract foreign investment, such as tax exemptions and startup subsidies. For example, Texas does not impose a corporate income tax and has a well-developed ecosystem for startups, making it a popular choice for business registration in recent years.

2. Common Types of Business Entities in the U.S.

Before registering a company, it’s essential to choose the appropriate business structure. The most common types include

1. Limited Liability Company LLC Ideal for small to medium-sized businesses, offering liability protection and flexible tax treatment.

2. C Corporation C-Corp Suitable for companies planning to raise capital or go public, though subject to double taxation.

3. S Corporation S-Corp Designed for small businesses, avoiding double taxation but with restrictions on shareholders.

4. Partnership Best for multiple owners, with transparent tax reporting.

5. Sole Proprietorship Simple to set up, but offers no liability protection.

Among these, LLCs are the most popular among startups due to their flexibility and liability protection.

3. Basic Steps to Register a Company in the U.S.

While specific regulations vary by state, the general registration process includes

1. Choose the State of Registration

Consider factors such as tax rates, legal environment, and operational convenience. Delaware, for instance, is a top choice due to its well-developed corporate law and business-friendly policies. According to Forbes 2025, over 65% of publicly traded companies are incorporated in Delaware.

2. Select and Verify a Company Name

The name must be unique within the state and can typically be checked via the state’s official website. Some states require the inclusion of identifiers such as LLC or Inc.

3. Appoint a Registered Agent

U.S. law requires every company to have a registered agent who receives legal documents on its behalf. This agent must be a resident or registered entity in the state of registration; in some cases, the business owner can serve as the agent.

4. File the Company Formation Document

For LLCs, this is usually the Articles of Organization, and for C-Corps, the Articles of Incorporation. These documents must be submitted to the Secretary of State and include details such as company name, address, business purpose, and shareholder information.

5. Obtain an Employer Identification Number EIN

The EIN serves as a company’s tax ID in the U.S., similar to a business license number in China. It can be obtained for free through the IRS website.

6. Open a U.S. Bank Account

After registration, entrepreneurs need to open a business bank account. Some banks offer remote account opening, but many still require a personal visit to the U.S.

7. Apply for Relevant Licenses and Permits

Depending on the industry, certain licenses may be required-for example, in food service, healthcare, or finance-obtained at the state or local level.

4. Breakdown of Registration Costs

Costs vary by state. Here’s a general estimate for forming an LLC

State Filing Fee $50-$500

For example, $70 in California and $200 in New York.

Registered Agent Annual Fee $50-$300/year

Annual Report Fee Varies by state, ranging from $50 to $800

EIN Application Free

Legal or Registration Service Fees $200-$1,000 if using a third-party service

Bank Account Fees Varies by bank; some charge monthly fees or require initial deposits

Overall, the initial cost of forming an LLC typically ranges from $300 to $1,000, depending on the state and whether professional services are used.

5. Recent Trends and Policy Changes

In recent years, the U.S. has been streamlining the registration process for foreign investors. In October 2025, the U.S. Department of Commerce launched the International Entrepreneur Fast Track Program, offering registration guidance, tax consultation, and localized support for eligible foreign businesses-further lowering the barriers to entry.

With the rise of remote work, an increasing number of entrepreneurs are registering U.S. companies while operating remotely. According to The Wall Street Journal, the number of foreign businesses registered in the U.S. via remote methods increased by 35% in 2025, highlighting the continued appeal of the U.S. market to global entrepreneurs.

6. Frequently Asked Questions and Practical Advice

1. Do I need to visit the U.S. to register a company?

Most steps can be completed remotely through a registration agent, although opening a bank account typically requires a personal visit.

2. Are taxes required after registration?

Yes, even if the company is not yet operational, tax filings may still be necessary. It’s advisable to consult a professional accountant.

3. How do I choose the state for registration?

If you don’t have a physical office in the U.S., consider tax-friendly states like Delaware or Wyoming.

4. Is a U.S. partner required?

Not mandatory, but having a local partner can help with business expansion and compliance.

Conclusion

Registering a company in the U.S. is just the beginning. Long-term success depends on sound tax planning, compliant operations, and effective market development. With continuous policy improvements and an open market, the U.S. offers growing opportunities for global entrepreneurs. By understanding the registration process, managing costs, and preparing thoroughly, you can confidently take your first steps on this fertile ground for innovation and growth.