Want to Start a Business in the U.S.? Must-Know Reg. Processes Fees!

How to Register a Company in the U.S. Essential Processes and Costs You Must Know

In recent years, with the acceleration of globalization and the continuous development of China-U.S. economic and trade relations, an increasing number of Chinese businesses and entrepreneurs are setting their sights on the U.S. market. As one of the world’s largest economies, the United States offers a mature business environment, a well-established legal system, and a vast consumer market-making it an attractive destination for companies seeking international expansion.

Especially in 2025, with fluctuations in the U.S. dollar exchange rate and the ongoing expansion of cross-border e-commerce platforms, many Chinese companies are beginning to establish businesses in the U.S. to enhance brand visibility, optimize tax structures, and even prepare for future fundraising or listing opportunities.

So, what are the necessary steps to register a company in the U.S., and what are the associated costs?

1. Common Types of U.S. Business Entities

The first step in registering a U.S. company is choosing the right business structure based on your operational needs. The most common options include

1. Limited Liability Company LLC

An LLC is one of the most popular structures, especially for small and medium-sized businesses and entrepreneurs. It combines the advantages of a corporation and a partnership, offering low setup costs, flexible management, and limited liability protection. The owners of an LLC are called members and can be individuals or other companies.

2. C Corporation C-Corp

A C-Corp is ideal for companies planning to raise capital or go public in the future. It can issue shares to attract investors, but it is subject to higher taxes. The corporation itself pays income tax on its profits, and shareholders also pay personal income tax on dividends-leading to double taxation.

3. S Corporation S-Corp

An S-Corp is essentially a tax classification suitable for small businesses. It allows profits and losses to pass directly to shareholders’ personal tax returns, avoiding double taxation. However, S-Corps have restrictions on the number and nationality of shareholders.

4. Branch Office or Representative Office

For companies testing the U.S. market, a branch or representative office may be an option. However, these structures typically do not have independent legal status, and the parent company assumes full legal responsibility.

2. Detailed Registration Process

While the process of registering a U.S. company is relatively straightforward, it involves multiple steps, and requirements vary slightly by state. Here’s a general overview

1. Choose a State of Registration

Each U.S. state has its own corporate laws. Popular choices include Delaware, Nevada, and California. Delaware is a top choice due to its business-friendly laws and efficient court system.

2. Check and Register the Company Name

You must check the availability of your desired company name on the official website of the chosen state. The name must comply with state regulations and usually must include a suffix like LLC or Inc.

3. File Company Formation Documents

Submit the required formation documents to the state, such as the Articles of Organization for an LLC or Articles of Incorporation for a C-Corp, and pay the associated fees.

4. Apply for an Employer Identification Number EIN

An EIN is a unique identifier for your business, similar to a Social Security Number for individuals. It is required for tax reporting, opening a bank account, and more. You can apply for it for free via the IRS website.

5. Draft an Operating Agreement for LLCs

While not mandatory in all states, it’s highly recommended that LLCs create an Operating Agreement outlining ownership structure, management, and profit distribution.

6. Open a U.S. Bank Account

After registration, you can open a U.S. bank account. Some banks allow remote account opening, though they may require notarized documents or in-person visits.

7. Obtain Business Licenses and Tax Registrations

Depending on your business type and location, you may need to obtain a business license, sales tax number, and complete both state and federal tax registrations.

3. Cost Overview

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

Item Cost USD Notes

-

State Filing Fee $50-$500 Varies by state e.g., $80 in California, $200 in New York

Annual Report Fee $0-$300/year $300/year in Delaware

Registered Agent Service $50-$300/year Most states require a local agent

EIN Application Free Available through IRS

Notarization Authentication $100-$300 If registering remotely

Bank Account Setup $0-$200 Varies by bank

Professional Services e.g., lawyer, agent $500-$2,000+ Optional, based on needs

In total, initial registration costs typically range from $500 to $2,000, depending on the state and whether you use professional services. Annual maintenance costs, such as state fees and registered agent fees, must also be considered.

4. Recent Trends and Case Studies

According to the first-quarter 2025 data from the U.S. Department of Commerce, the number of foreign companies registering in the U.S. increased by 12% year-over-year. Asian companies, especially those from China, India, and Singapore, have shown a significant rise.

Many cross-border e-commerce sellers are registering U.S. companies to enhance platform credibility, reduce customs costs, and collaborate more effectively with local suppliers. For example, a Chinese consumer electronics brand recently registered an LLC in Delaware and successfully secured preferential listing status on Amazon, which helped them expand into the North American market. The company’s management noted that the process was smooth and that the clear tax structure facilitated future fundraising.

With the rise of remote work and digital nomadism, more freelancers and individual entrepreneurs are also choosing to register U.S. companies to enhance the compliance and professionalism of their international operations.

5. Key Considerations and Recommendations

1. Understand State and Federal Tax Differences

Tax rates and regulations vary significantly between states. It’s advisable to consult a professional accountant or tax advisor before registration.

2. Maintain Compliance

U.S. companies are subject to strict compliance requirements. Make sure to file annual reports, pay taxes on time, and maintain accurate financial records.

3. Choose a Reliable Registered Agent

If you can’t register in person, opt for a reputable registered agent to avoid losses due to misinformation.

4. Plan Finances and Human Resources in Advance

Operating costs in the U.S., especially labor and office rent, are high. Proper financial planning is essential.

Conclusion

The U.S. market offers great opportunities, but company registration is not a one-time process. Understanding the procedures, managing costs, and planning strategically are crucial for laying a solid foundation for international growth. Whether you're a startup or an established brand, with the right preparation, the U.S. market remains open and accessible to determined entrepreneurs.