Key Points You Must Know About Registering a Proxy Company in the U.S.

Things You Must Know About Registering a U.S. Agency Company

With the acceleration of global economic integration, more and more Chinese companies and individuals are setting their sights on overseas markets-particularly the United States, the world’s largest economy. The idea of registering a U.S. agency company has gradually become a focal point for many entrepreneurs and investors. Whether the goal is to expand business, bypass trade barriers, or internationalize a brand, establishing a U.S. agency company can be a crucial step toward achieving these objectives. However, there are many details and considerations in the process that cannot be overlooked.

1. What Is a U.S. Agency Company?

An agency company typically refers to a legal entity registered in the U.S. that represents foreign companies or individuals in conducting certain business activities within the country. It doesn’t necessarily mean full-scale production or independent operations. More often than not, it serves as an extension of functions such as liaison, sales, procurement, and marketing.

For example, a Chinese tech company looking to establish a sales presence in the U.S. might choose to register a U.S. agency company to legally conduct related business. According to U.S. law, agency companies can choose from different legal structures, such as Limited Liability Company LLC, C Corporation, or S Corporation. Each structure has distinct implications in terms of taxation, liability, and operational framework.

2. Why Register an Agency Company in the U.S.?

Despite fluctuations in U.S.-China trade relations in recent years, the American market remains a key destination for Chinese companies going global. According to data released by the U.S. Department of Commerce in 2025, Chinese exports to the U.S. reached nearly $500 billion that year. Despite tariff pressures, exports of high-tech products and new energy equipment continued to grow. This shows that Chinese companies still have a strong reliance on the U.S. market.

Registering a U.S. agency company helps businesses get closer to the market, enhances brand credibility, and facilitates the avoidance of certain trade barriers. For instance, conducting procurement or sales through a local U.S. company can help reduce tariff risks and improve supply chain efficiency. For companies planning to raise capital or go public in the U.S., setting up an agency company in advance can also facilitate future capital operations.

3. Registration Process and Key Considerations

1. Choose the State of Registration

U.S. states differ significantly in corporate laws and tax policies. Delaware, Nevada, and Wyoming are popular choices due to their mature corporate laws, favorable tax policies, and strong privacy protections. For example, Delaware is the most popular state for company registration in the U.S., with a well-developed commercial legal system and an efficient court system.

2. Determine the Company Structure

As previously mentioned, LLCs are a common choice, especially for small and medium-sized businesses, due to their flexible tax treatment and limited liability protection for shareholders. C Corporations are better suited for companies planning to raise capital or go public, although they face double taxation, they offer advantages in attracting investment.

3. Obtain an EIN Employer Identification Number

An EIN is a unique identifier used by U.S. companies for tax reporting and bank account opening, similar to the Unified Social Credit Code in China. EIN applications can be completed online via the IRS website, though foreign applicants may need to submit additional forms.

4. Open a U.S. Bank Account

After company registration, it is usually necessary to open a U.S. bank account for financial transactions. Some U.S. banks allow remote account opening, but require documents such as company registration certificates, passports, and EINs, and the approval process is typically strict.

5. Compliance and Tax Reporting

Even if a company has no physical office or employees in the U.S., as long as it is registered, it must fulfill tax reporting obligations. For example, if an LLC is treated as a Disregarded Entity single-member LLC, income must be reported on the individual’s tax return. If it is structured as a C Corporation, it must file a separate corporate tax return. Also important are cross-border tax requirements such as FATCA Foreign Account Tax Compliance Act and FBAR Foreign Bank Account Report.

4. Recent Trends and Policy Changes

In 2025, the U.S. Treasury implemented the Corporate Transparency Act CTA, requiring all newly registered companies to submit beneficial ownership information to FinCEN Financial Crimes Enforcement Network. This policy aims to combat money laundering and illicit financial flows but has increased compliance costs for foreign investors. Under the new rules, companies that fail to submit the required information may face fines of up to $500 per day, with a maximum penalty of $100,000.

States are also tightening scrutiny over company registration information. For example, California recently increased annual LLC fees and imposed stricter tax rules on remote-working businesses. These changes mean that registering a U.S. agency company is no longer a one-time task-it is an ongoing process that requires continuous attention and maintenance.

5. Practical Advice and Common Misconceptions

Don’t blindly pursue low-cost or zero-barrier registration

Some intermediaries advertise $1 company registration, but this often ignores the long-term compliance and operational complexities. It is advisable to consult a professional attorney or accountant before registration to ensure a reasonable and compliant structure.

Don’t neglect trademark and intellectual property protection

Many Chinese companies discover too late that their brand has already been registered as a trademark in the U.S. Before registering a company, it is recommended to conduct a trademark search to ensure the brand name is legally available.

Plan your tax structure carefully

U.S. tax laws are complex and vary significantly by state. It is advisable to plan your tax strategy in advance based on your business model to avoid high tax liabilities due to lack of knowledge.

Maintain an active company status

U.S. companies are required to file annual reports and pay annual fees. Failure to comply may result in the company being deemed inactive or dissolved. For companies that will not be actively operated for a long time, consider timely dissolution to avoid unnecessary legal liabilities.

Conclusion

Registering a U.S. agency company is an important path to entering the international market, but it is also a journey full of challenges. Only with a full understanding of local laws, policies, and market conditions can companies truly realize their global expansion goals. For individuals or companies planning to establish a U.S. agency company, early planning, professional consultation, and ongoing compliance are the keys to success.