How Do Longgang Enterprises Choose a U.S. Company Registration Location? Analyzing Key Factors in Site Selection

How Should Longgang Enterprises Choose a U.S. Company Registration Address? A Multi-Dimensional Analysis of Location Selection

In recent years, with the acceleration of global economic integration, an increasing number of Chinese companies have chosen to expand internationally by establishing overseas subsidiaries. As one of the world's largest economies, the United States has attracted significant attention from Chinese enterprises. Shenzhen’s Longgang District, a key industrial hub in the Guangdong-Hong Kong-Macao Greater Bay Area, is home to numerous high-tech and manufacturing companies. As these companies seek international growth, many are setting their sights on the U.S. market. In this process, selecting the right U.S. company registration address has become a critical decision for many Longgang enterprises.

1. Significant Differences in Registration Environments Across U.S. States

In the United States, company registration is not managed at the federal level but rather by individual states. Each state has its own distinct policies regarding taxation, legal frameworks, administrative efficiency, and business support. For Longgang enterprises, the choice of registration location not only affects operational costs but also directly impacts future compliance and business expansion.

Take Delaware, for example-it is one of the most popular states for company registration in the U.S. According to 2025 business reports, over 60% of publicly traded companies and more than half of Fortune 500 companies are registered in Delaware. Its appeal lies in its well-developed corporate law system, strong privacy protections for shareholders and directors, low registration and maintenance costs, and an efficient legal system for handling corporate litigation. These factors make it particularly attractive for enterprises planning to set up holding companies or raise capital in the U.S.

In contrast, while California is home to Silicon Valley and a thriving tech ecosystem, it has higher corporate taxes and stricter regulatory requirements. For startups or asset-light companies, it may not be the optimal choice.

2. Taxation as a Key Consideration

Tax costs are among the most critical factors when establishing a company overseas. Corporate income tax rates vary from 0% to over 10% across U.S. states, and combined with federal taxes, the total tax burden can differ significantly.

Nevada, for instance, does not impose corporate income tax, personal income tax, or capital gains tax-making it a top choice for many tech startups. In 2025, a Shenzhen Longgang-based AI company registered a subsidiary in Nevada, attracted by its favorable tax policies. The company’s executive stated in an interview that choosing Nevada helped reduce initial operational costs and provided greater flexibility for its U.S. market expansion.

On the other hand, high-tax states like New York are more suitable for established businesses that require access to financial resources and talent. Longgang enterprises should carefully evaluate their stage of development and business needs when considering tax implications.

3. Industry Characteristics and Regional Fit

The choice of registration location should also align with the specific industry characteristics and regional resource advantages. Technology companies may prefer areas with strong innovation ecosystems and academic resources, such as Boston in Massachusetts or Silicon Valley in California. Manufacturing firms, in contrast, often prioritize logistics infrastructure and labor costs.

Recently, a smart manufacturing company based in Longgang evaluated several U.S. locations before ultimately choosing Texas. The state offers favorable tax policies, a strong manufacturing base, and relatively low operating costs. Texas also provides various incentives for technology and manufacturing firms, including tax breaks and talent attraction programs, which played a significant role in the company’s decision-making process.

4. Legal Environment and Compliance Risks

Beyond taxation and industry alignment, the legal environment is another crucial factor in location selection. U.S. states differ significantly in corporate law, labor regulations, and intellectual property protection.

Delaware, for instance, is home to the most mature commercial court system in the U.S., offering efficient dispute resolution and robust legal protection for businesses. In contrast, some states have more stringent labor laws, which could increase employment costs and compliance risks.

For Longgang enterprises unfamiliar with the U.S. legal system, it is advisable to prioritize states with mature legal frameworks and high judicial transparency to minimize potential legal disputes and compliance expenses.

5. Registration Process and Ongoing Maintenance

The ease of registration and the convenience of ongoing compliance requirements also influence location decisions. Some states offer streamlined registration procedures, allowing businesses to complete the process within days, along with simplified annual reporting and tax filing processes.

Wyoming, for example, has become increasingly popular among small and medium-sized enterprises due to its simple registration process and minimal regulatory burden. Some states also offer online registration and digital management tools, significantly improving the efficiency of company formation.

For Longgang companies entering the U.S. market for the first time, choosing a state with straightforward procedures and low maintenance costs can help reduce the complexity of early-stage operations.

Conclusion

In conclusion, when selecting a U.S. company registration address, Longgang enterprises must take into account a range of factors, including tax policies, legal environment, industry alignment, compliance risks, and registration and maintenance efficiency. There is no universally optimal location-only the one that best suits the company's specific needs.

By aligning their choice with their stage of development, strategic goals, and resource allocation, enterprises can lay a solid foundation for long-term, stable growth in the U.S. market.