Key Requirements for Establishing a Company in the U.S. A Comprehensive Analysis

How to Easily Establish a Company in the United States A Comprehensive Guide to Key Requirements

In recent years, with the deepening of globalization, an increasing number of entrepreneurs and businesses have turned their attention to overseas markets-particularly the United States, one of the most dynamic economies in the world. According to recent data released by the U.S. Department of Commerce, the number of new businesses registered in the U.S. in the first half of 2025 increased by more than 12% year-on-year, with a significant number coming from international entrepreneurs in Asia, Europe, and beyond. This reflects the continued appeal of the U.S. market to global entrepreneurs.

So, how can you successfully register a company in the United States? What are the key requirements for establishing a U.S. company? This article provides a detailed breakdown.

1. Choose the Right Business Structure

The first step in registering a company in the U.S. is to determine the appropriate business structure. Common options include

Limited Liability Company LLC This is a popular choice for startups and small to medium-sized businesses. It combines the flexibility of a partnership with the liability protection of a corporation, and typically offers favorable tax treatment.

Corporation Suitable for businesses planning to raise capital or go public, corporations are divided into C Corporations and S Corporations. C Corporations are commonly used by foreign investors, while S Corporations are available only to U.S. citizens or permanent residents.

Partnership Ideal for businesses with two or more co-owners, though it carries higher personal liability risk.

Sole Proprietorship Easy to set up but offers no separation between personal and business assets, making it riskier.

According to statistics from the Internal Revenue Service IRS, LLCs have become the most popular registration structure in recent years, especially among international entrepreneurs.

2. Select the Right State for Registration

The U.S. operates under a federal system, and each state has considerable autonomy in business registration. Choosing the right state is therefore a critical decision.

Commonly selected states include

Delaware Known for its mature corporate laws, strong privacy protections, and specialized court system, Delaware is the top choice for many companies.

Nevada Offers no corporate income tax or capital gains tax, making it attractive for startups.

California Despite higher taxes, it offers rich tech resources and is ideal for technology-focused businesses.

When choosing a state, consider factors such as tax policy, operational convenience, and legal environment. Many non-U.S. residents opt for Delaware or Nevada to reduce tax burdens and increase operational flexibility.

3. Prepare Required Registration Documents

Common documents required to register a U.S. company include

1. Company Name Ensure the name is not already in use in the selected state. You can check availability on the state’s official website.

2. Registered Address A U.S.-based address is required, which can be either a physical office or a service provided by a registered agent.

3. Registered Agent Most states require a registered agent to receive legal documents and official notices on behalf of the company.

4. Articles of Incorporation or Certificate of Formation These are the legal documents required to formally establish the company and must be filed with the state.

5. EIN Employer Identification Number This is the company’s tax ID, similar to a personal Social Security Number SSN, and is issued by the IRS. International entrepreneurs can apply for an EIN online, even without an SSN, by completing Form SS-4.

4. Understand Tax and Compliance Obligations

U.S. companies are subject to various tax obligations

Federal Tax All companies must file federal taxes with the IRS. The applicable rate depends on the business structure.

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

Sales Tax If your company sells goods or services, you may be required to collect and pay sales tax based on your state’s regulations.

In addition, companies must meet ongoing compliance requirements such as annual reporting and business license renewals. For example, Delaware requires an annual franchise tax of $850 and submission of an annual report.

5. Open a U.S. Bank Account

After forming the company, it is advisable to open a U.S. bank account as soon as possible to facilitate daily operations and financial management. While some banks allow remote account opening, most still require a visit to the U.S. or the use of a local representative.

In recent years, fintech companies like Mercury and Ramp have introduced remote account opening services, offering greater convenience for international entrepreneurs.

6. Leverage Professional Services to Simplify the Process

For international entrepreneurs unfamiliar with U.S. legal procedures, working with professional service providers is a smart choice. These firms typically offer

Company name search and registration

Filing of registration documents

EIN application

Registered agent services

Annual compliance support

Many law and accounting firms now offer all-in-one U.S. company registration packages, ranging in price from $300 to $1,000, covering everything from company formation to tax registration.

Conclusion

Establishing a company in the United States is not an unattainable goal. With a clear understanding of the key procedures and requirements, and through thoughtful planning, entrepreneurs can take a confident first step toward global expansion. As the U.S. market continues to welcome international entrepreneurs, more small and medium-sized businesses and individuals are exploring the opportunity to set up operations in the U.S. and expand into international markets. A solid grasp of business structures, registration states, tax policies, and compliance obligations will lay a strong foundation for your entrepreneurial journey.