How to Easily Register a Company in the U.S. as a Domestic Individual? Step-by-Step Guide and Key Considerations

How Can Individuals in China Easily Establish a Company in the United States? A Detailed Guide on Procedures and Key Considerations

In recent years, with the acceleration of global economic integration, an increasing number of individuals in China have begun to explore overseas investment and entrepreneurial opportunities. The United States, in particular, has become a preferred destination for many entrepreneurs and investors due to its open market environment, mature legal system, and strong capabilities in technological innovation.

According to the 2025 Report on China's Outward Investment and Cooperation, Chinese investment in the U.S. has seen significant growth, especially in the fields of technology, healthcare, and new energy, with the proportion of individual investors steadily rising. So, how can individuals residing in mainland China register a company in the U.S.? Is the process truly as simple as rumored? This article provides a comprehensive explanation.

1. Why Register a Company in the United States?

Let’s first explore why the U.S. has become a popular choice for many Chinese individual investors

1. Vast Market The U.S. is one of the world's largest consumer markets. Once a company establishes brand influence, it can quickly expand its business.

2. Robust Legal System U.S. corporate law is well-developed, offering clear regulations for company formation, operations, and taxation, which protects investor rights.

3. Diverse Financing Channels The U.S. capital market is highly developed, making it relatively easier to access angel investments, venture capital, or bank loans.

4. Flexible Tax Policies Corporate tax rates vary significantly by state. States like Delaware and Nevada offer favorable tax policies, including no corporate or personal income tax.

5. Enhanced International Image Owning a U.S. company can boost a brand’s global reputation, especially in areas like cross-border e-commerce and technology products.

2. Basic Steps for Individuals in China to Register a Company in the U.S.

While registering a U.S. company is not overly complex, individuals in China should understand the basic procedures and key considerations

Step 1 Choose a Company Structure

Common types of U.S. companies include

LLC Limited Liability Company Ideal for small to medium-sized businesses, offering limited liability protection. For tax purposes, it can be treated as a sole proprietorship.

C Corporation Suitable for companies planning to raise capital or go public, but subject to double taxation corporate tax + shareholder dividend tax.

S Corporation A pass-through entity for tax purposes, avoiding double taxation, but requires shareholders to be U.S. residents.

For most Chinese individuals, an LLC is the most common choice due to its simplicity, tax flexibility, and lack of restrictions on foreign ownership.

Step 2 Choose a State for Registration

Each U.S. state has different legal and tax policies. Here are some popular options

Delaware Known for its mature corporate law and specialized corporate court, ideal for large enterprises.

Nevada Offers no corporate or personal income tax, suitable for small to medium-sized businesses.

California Ideal for tech, entertainment, and education-related businesses, though with higher tax rates.

Choose based on your business nature and long-term development plans.

Step 3 Provide Required Company Information

To register, you’ll need to provide

Unique company name

Registered address can be through a registered agent service

Owner information can be an individual in China

Business purpose

Registered agent most states require a U.S.-based registered agent

Step 4 Submit Registration Documents

These typically include

Articles of Organization for LLCs or Articles of Incorporation for Corporations

Operating Agreement for LLCs - not mandatory but strongly recommended

You can submit these through the state’s official website or via a registered agent service.

Step 5 Obtain an EIN Employer Identification Number

The EIN serves as a company’s U.S. tax ID, necessary for opening a bank account and filing taxes. You can apply online through the IRS website or have a registered agent assist.

Step 6 Open a U.S. Bank Account

While it’s possible for Chinese individuals to set up a U.S. company, opening a bank account remotely can be challenging. Some banks accept assistance from agents or lawyers, and a few support video verification. Recommended banks include Wells Fargo and Chase, or consider using cross-border financial platforms for assistance.

3. Legal and Tax Considerations for Chinese Individuals

Although the registration process seems straightforward, individuals in China should be aware of the following legal and tax issues

1. U.S. Federal and State Tax Filings

Even if the company isn’t actively operating, you must file annual federal and state tax returns even if they’re zero returns. If the company generates profit, it must pay federal corporate tax typically 21% and applicable state taxes e.g., California’s 8.84%.

2. U.S. Anti-Money Laundering AML and Compliance Requirements

U.S. financial regulations are strict. Companies must comply with AML and Know Your Customer KYC rules. Banks may require identity verification and proof of fund sources when opening accounts.

3. China’s Foreign Exchange Regulations

According to the State Administration of Foreign Exchange SAFE, Chinese individuals investing overseas must comply with foreign exchange registration requirements. If investing through an offshore special purpose vehicle SPV, a 37 Circular 37 registration is required. Failure to comply may result in difficulties in repatriating funds.

4. Annual Reporting and Company Maintenance

Most states require annual reports and fees e.g., $300 per year in Delaware. Failure to file on time may result in penalties or company dissolution.

4. Recommendations and Practical Tips

1. Use a Professional Registration Agent Platforms like LegalZoom, Incfile, and MyCompanyWorks offer one-stop services including registration, EIN application, and registered agent services, saving time and effort.

2. Consult Legal or Accounting Experts Seek professional advice on tax, compliance, and cross-border financial arrangements to avoid legal risks.

3. Plan Your Capital Flow Strategically Given differences in China and U.S. foreign exchange regulations, consider legal and compliant methods such as using offshore companies as intermediaries.

4. Stay Updated on Policy Changes Both countries frequently update policies, especially in finance, taxation, and visas. Stay informed of the latest developments.

Conclusion

For individuals in China, registering a company in the U.S. is neither impossible nor as simple as a single click. From choosing the right company structure and navigating the registration process to handling tax filings and compliance, every step requires careful attention. Only by fully understanding the relevant laws, tax rules, and regulatory policies can one truly establish and operate a U.S. company smoothly, laying a solid foundation for future international expansion.