Taxes for Registering a US Company A Comprehensive Guide to Get You Started

What Taxes Do You Need to Pay When Registering a Company in the U.S.? A Comprehensive Guide to Get You Started Smoothly

As globalization accelerates, more and more Chinese businesses and entrepreneurs are setting their sights on overseas markets, especially the United States-the world’s largest economy. The U.S. offers a mature business environment, a vast consumer market, and a diverse legal and tax framework for businesses of all types. However, for entrepreneurs entering the U.S. market for the first time, understanding and navigating the U.S. tax system is a key challenge.

According to a recent Bloomberg report, in the first quarter of 2025, the number of foreign companies registering in the U.S. increased by more than 12% year-over-year, with a significant rise in companies from Asia. This trend reflects continued international confidence in the U.S. market and highlights the growing importance of understanding the U.S. tax system.

This article outlines the main taxes you may encounter after registering a U.S. company, helping you start on solid, compliant footing.

1. Overview of the U.S. Corporate Tax System

The U.S. tax system is composed of federal, state, and local levels. Businesses must pay various taxes depending on their state of incorporation, company structure, and operations.

The most common business structures include

C Corporation C Corp

S Corporation S Corp

Limited Liability Company LLC

Partnership

Each structure has different tax implications. For example, C Corporations are subject to federal corporate income tax, while S Corporations use a pass-through taxation system, meaning the company itself does not pay corporate tax-profits are passed through to shareholders and taxed at the individual level.

Choosing the right business structure before registration is a crucial step in tax planning.

2. Key Taxes Explained

1. Federal Corporate Income Tax

This is the core tax for most U.S. companies. According to the IRS, C Corporations are taxed at a flat rate of 21% on their profits. In contrast, S Corporations, LLCs, and partnerships are pass-through entities and do not pay corporate income tax directly.

Notably, in 2025, the U.S. passed the Inflation Reduction Act, introducing a 15% minimum corporate tax for companies with annual revenues over $1 billion. This means even some large companies with negative profits may still be required to pay this minimum tax.

2. State Corporate Income Tax

In addition to federal taxes, states also impose corporate income taxes, with rates varying by state. For instance

California 8.84%

Texas No corporate income tax, but a franchise tax applies to certain businesses

Choosing the right state for incorporation is a key factor in managing your overall tax burden.

3. Sales Tax

Sales tax is levied by individual states and applies to the sale of goods and services. Businesses must register in the state where sales occur and collect and remit sales tax accordingly.

With the rise of e-commerce, many states have strengthened tax enforcement on online sales. As of early 2025, over 30 states require online marketplaces to collect and remit sales tax, making it essential for businesses to understand the tax rules in their sales jurisdictions.

4. Employment Taxes

If your company hires employees, you must pay employment taxes, including

Federal Insurance Contributions Act FICA Total rate of 15.3%, split equally between employer and employee

Federal Unemployment Tax Act FUTA Rate of 6%, used to fund unemployment insurance

5. Self-Employment Tax

For sole proprietors or LLC members who are not incorporated as a C Corp or S Corp, self-employment tax may apply. This tax covers Social Security and Medicare, with a total rate of 15.3%, similar to FICA.

3. Tax Compliance and Filing Process

Running a company in the U.S. involves ongoing tax compliance. Businesses must file their federal corporate income tax return Form 1120 or 1120S by April 15 each year, along with state tax returns as required.

If you have employees, you must also file quarterly forms such as W-2 and Form 941.

In 2025, the IRS announced an increase in audits of cross-border transactions and required more companies to file foreign account reports such as Form 5471 and Form 8865. It is highly recommended to hire a professional accountant or tax advisor early in the registration process to ensure compliance.

4. Tax Planning Tips

1. Choose the Right Business Structure Select a structure that aligns with your business size and growth plans to optimize your tax burden.

2. Consider State Tax Policies States like Delaware and Nevada offer tax advantages for LLCs and C Corporations, making them popular choices for incorporation.

3. Leverage Tax Treaties The U.S. has tax treaties with countries like China to avoid double taxation, which can help reduce cross-border tax liabilities.

4. Maintain Accurate Records Establish a robust financial system and retain all transaction records for audit readiness.

Conclusion

Registering a company in the U.S. is a major step toward international expansion, but it also means navigating a complex tax environment. Understanding the major taxes and reporting requirements is essential for long-term, stable business operations.

In an era of increasing global economic uncertainty, effective tax planning provides businesses with stronger risk resilience and a solid foundation for sustainable growth.