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Today, you will learn how to register a company in the US as successfully as thousands of entrepreneurs, from US residents to foreigners, have done using our guide.
In fact, here is feedback from our customer, a non-US resident, who we helped to open a US company using the exact same guide.
If you truly want to incorporate your company in the US with success, you will love all the actionable steps in this guide.
Let’s get into it.
1. Why incorporate a company and business in the US?
For the majority of international sellers, company formation is not a requirement to do business in the US market.
However, having a company brings many benefits in the long term and helps you make the most out of the American ecosystem.
To understand the advantages and disadvantages, we prepare a concise table listing the pros and cons of setting up your US company,
| Pros | Cons |
|
Access to the large and lucrative US consumer market. |
Incorporation can be complex and involves legal procedures |
| Increased credibility and reputation with US businesses and consumers. | Operating costs, including taxes, may be higher in the US. |
| Access to US payment gateways like Stripe and PayPal for global transactions. | Foreign companies can sign US contracts without incorporation. |
| Opportunity for higher revenue from wealthy US clients. | Incorporation isn't always necessary to sell products in the US. |
| Easier to secure partnerships and contracts with American companies. | Managing US regulations and compliance can be challenging. |
| Access to venture funding, incubators, and accelerators like Y Combinator. | Competition for accelerator spots can be intense |
| Potential for US immigration benefits through business investment (e.g., E-2 visa). | It requires significant capital for certain immigration benefits. |
| Equal legal standing with US resident-owned businesses. | You must follow the same obligations as a resident-owned business with extra compliance for non-resident business owner. |
| Strong protection of intellectual property rights (IPR). | Intellectual property protection can be costly to maintain. |
Despite some challenges listed above, the long-term benefits of operating within the US ecosystem make it a worthwhile investment for businesses aiming to scale and thrive globally.
2. Can foreigners register a company in the US?
Many people mistakenly think that you must be a US citizen, or resident, or have a US Social Security Number (SSN) to start a company in the US. This is simply not true.
You don’t need to be a US citizen or resident, and you don’t need a local person, agent, or director in your company to create a company in the US.
All US non-resident founders can
- Start a US company online;
- Gain access to the American market;
- Get a US tax number;
- Open a US business bank account;
- Open a US business Stripe, Paypal account, or any payment processors;
- All without traveling to the US.
Most physical banks in the US require you to be there in person to open an account, you need to fly there to do with a bank officer.
Or, you have the option to open an account with digital banks, which require fewer requirements and a fast opening process.
3. 7 largest mistakes to avoid when setting up a US company
No matter what you plan with your company, there’s always a formation option that suits your needs.
However, first-time company founder often makes costly mistakes, leading to losing control of their business, difficulties in raising funds, or even facing deportation from the U.S.
We will outline the 7 most common errors and offer tips on how to avoid them in this table below.
| Mistake | How to avoid | |
|
Choose the wrong business structure |
The business entity you select impacts your taxes, the paperwork involved, and the employee benefits you can provide |
The LLC is the top option to choose for both US residents and international entrepreneurs For more information on US business structure, read our guide: Top US business structures |
| Choose the wrong state |
Many US entrepreneurs often choose Delaware to register their company, outside of their home state, which may not fit their business operations This leads to a whole lot of annual filing and multiple fees that can add up over time. |
For foreigners, Delaware and Wyoming are the popular options. In fact, you can open in any state. For US residents, the “right” state to choose is your home state or the state you have a physical presence in. This helps avoid unnecessary paperwork and annual fees. |
| Not seek support from accountants and attorneys |
For the sake of saving money, many business owners choose to do it alone via do-it-yourself online platforms However, they usually are not experts to give you legal or accounting advice regarding your situation. In most scenarios, business owners have to find support from an attorney, or an accountant to fix their major problems |
It is best to work with a service provider with a team of recommended and experienced consultants, attorneys, and accountants at hand, like Global Link Asia Consulting We can help you with company formation, immigration, international tax, global transactions, and more. |
| Fail to stay compliant |
Many business owners, especially international entrepreneurs, often omit the annual compliance of their company. Compliance is essential to avoid visa, immigration, and tax problems and avoid putting your assets at risk |
Every year, you need to remember to
|
| Not understand the state and federal taxes | Due to the complexity of the tax regulations, many miss the tax benefits they can earn with their company as well as the tax they need to collect |
As an international business owner, you should take into account the following
|
| Not value the quality of service |
To optimize initial cost, many opt for a for-execution package to open their company. However, since they do not know anything about you and your business, they can charge less and simply carry out their duties according to your filing. This way, you potentially miss out on some critical requirements that you must have, such as a license, a financial deposit, an assurance fund, etc, hindering your operation in the future |
If you are absolutely sure of what you need, you can choose to use online service only. If you are still hesitant, you will benefit from talking to an experienced consultant and get guidance. |
| Hire yourself |
If you plant to come to the US to work for your company, you need a proper work visa If you come to the US without a visa, you will be deported back to your home country |
Choosing the right Visa is important, there are many visa you can apply for such as
|
4. Proven step-by-step guide to opening your company in the US
This is the most important section. Following this process step-by-step, you will set up your company in the US stress-free, from anywhere in the world.
Choosing a business name is important. It reflects your brand identity, which is an even more important invisible asset in this day and age.
You can register your company name in 4 different ways, each serving a unique purpose.
- Entity name: Protect your company name at the state level.
- Trademark: Offer protection at the federal level.
- Doing Business As (DBA): Provide no legal protection but offer you opportunities to be different, and unique on the market.
- Domain name: Secure your business’s online presence.
These registrations are legally distinct, and while many small businesses prefer to use the same name across all registrations, it's not always necessary.
To avoid issues later, it's wise to prepare at least three name options in case your first choice is unavailable.
In the US, there are many different business structures to choose from, each serving a purpose to your needs.
- Sole proprietorship
- Partnership
- Limited partnership
- C-Corporation (C-corp)
- S-Corporation (S-corp)
- Limited liability company (LLC)
Among these, LLC and C-corp are the 2 top choices for US-non residents and US residents. The question here is, which business structure should you choose?
| LLC | C-Corp | |
| What it is? | A business structure that offers limited liability, | A business structure in the US that is separate from its owners. It is taxed as a separate entity. |
| Why choose? |
|
|
Ultimately, the LLC is the top choice, no matter if you are a US resident or a foreigner.
If you need to raise funds from venture capitalists, or accelerators, or plan to take your company public in the future, a C-Corp is an ideal choice.
Remember that you can convert your LLC into your C-Corp in the future if you wish, with simple filing to the IRS and State office.
As a rule of thumb, the best state to form your company is always your home state if you are a US resident. Since you are primarily doing business in that state, whether with a physical location or an online business.
As a US non-resident, you can choose any state, as an experienced service provider, we recommend you choose Wyoming or Delaware due to how manageable it is to run and operate your entity.
So which state should a foreign entrepreneur choose: Delaware or Wyoming?
| Delaware | Wyoming | |
| What it is? |
|
|
Now that you know which state to form, which business structure to go with, and which name to go for, we come to the important part: How to register your company in the US.
To set you, you need to fulfill the requirements below
- Your company name
- Your registered agent
- Your US business address
- Your filing application
If you entrust a one-stop service provider like Global Link Asia Consulting, we will provide all necessary company formation documents, a US business address, and a registered agent and do all the steps for you.
If you choose to go solo, here is what you will need to do.
These are exactly the steps we have taken for our clients, with extra safety and security, and error-free processes built over 10 years in the field.
| 1 | Pick a registered agent |
You can search on Google, to find one. Remember to find a reliable person and they charge yearly fees for the services. A registered agent can be your service provider or a person with a physical presence in the US. |
| 2 | Check your company name on the state government website | Search in your state registry if your proposed LLC name is taken or not |
| 3 | Get a US business address |
Use your registered agent address or purchase a yearly virtual address service. Remember to have a mail scan service at your business address so that you can receive all crucial mail from the government or for your business |
| 4 | Prepare documents and file online | Prepare all necessary papers and file them online with the government |
| 5 | Receive your company formation documents | You will receive your Article of Incorporation If you do everything correctly |
| 6 | Draft your operating agreements | You need to prepare your by-laws to dictate how to run and manage your company. |
| 7 | Prepare other important documents | You will need to dragt and issue other legal papers such as bank resolutions, exhibit with capital contributions, stock certificates, and more |
Can you use your PO Box as your business address?
The answer is NO. Most states, except New York and Montana, do not allow PO boxes as the business addresses.
In addition, US banks will reject your bank account application if you use a PO Box.
5. What to do after incorporating your US company?
Once your company is ready to do business, there are a lot of things you need to get done.
We list out important tasks so you know what to do.
5.1. Get an EIN
EIN stands for Employer Identification Number, a unique 9-digit tax number for your company.
As a business owner, it allows you to
- Open US business bank accounts;
- Apply for US payment gateways like PayPal, and Stripe;
- Register with Amazon FBA, Etsy, Walmart, YouTube, Google Ads,
- File tax returns,
- Acquire business permits
- Streamline business loan or line of credit application process
You can apply for an EIN - online and through mail/fax with the IRS. To apply, you must have an SSN if you are a US resident or an ITIN if you are a foreigner
Can you get an EIN before incorporating your company?
Yes, you can get an EIN before incorporating your company. But we recommend not to do it.
If your company application and name are rejected, your EIN is linked to a "different" company name, which will take time and cost to file for another EIN.
5.2. Open a corporate bank account
The Bank account opening process for US residents is easy to do. You can open with any bank you like.
However, the process is not so easy with US non-residents. Requirements to open are:
- Banks resolutions with enough information about your companies and account holders;
- US ITITN and EIN;
- A physical meeting with the bank officer is to open.
Even with all the requirements met, your opening success chance is not guaranteed or even zero if your nationality is on the OFAX restrictions.
That said: There are online or neo-banks where you can open a US bank account without all the fuss of traditional banks.
What is a digital/neo/online bank?
Neobanks are fintech companies that offer banking and financial services entirely online through mobile apps.
In other words, neobanks are a type of licensed bank that does not have physical branches but offers all the banking services you need.
Online banks offer a streamlined opening process with fewer requirements than typical US traditional banks.
You can open an account and start doing transactions right away. We will support you in opening a digital bank account with no complexity.
5.3. Get a US phone number
Without a doubt, a US business phone number is important. You need it, especially when you are a US non-resident, to open your bank account and your payment gateway.
You can simply search to find some online providers. Remember that they often are VoIP (Voice over Internet Providers).
VoIP is a phone system that uses an internet connection to make and receive calls, rather than traditional landlines.
Some VoIP allows SMS, OTPs & 2-factor authentication so be sure to check with the provider if this facility is available.
OR,
You use our Call Forwarding service. You get a virtual sim card that is redirected directly to your phone number: You can contact your customers, and your supplier, with just 1 phone number.
5.4. Set up your PayPal and Stripe account
To create a US Business Stripe and PayPal account, you need
- EIN
- A US business address, with a US phone number
- ITIN
- Your passport for ID verification.
You should also make sure you are not on PayPal or Stripe's list of restricted businesses!
You can absolutely open an account on your own.
OR
You can ask us for support, we can definitely help you open an account with an extra perk (A PayPal Business VIP) with little limitations, extra security, and features.
5.5. Do your bookkeeping
After registering your company, obtaining an EIN, and getting your US bank account and payment processors approved, you can begin transacting in the US.
As soon as you start transacting, you'll need to manage bookkeeping for your sales, expenses, cash inflows, cash outflows, and more.
Yes, bookkeeping is required, you seriously don't want to pay hefty fines, get your company audited with the risk of strike-off.
Can you do the bookkeeping yourself?
If you have time and are aware of the US accounting and GAAP, you can do it by yourself.
The majority of business owners usually outsource to a service provider or hire someone to do it since it saves time and resources.
5.6. File taxes and comply with the State, IRS
The mandatory compliances you have to do for your US company:
- IRS tax filings
IRS compliance deadlines
- Single Member LLC - 15ch April
- Multi Member LLC - 15ch March
- C-Corporations - 15ch April
You must do all your compliances in the year after your financial year-end. The default financial year for all US companies is from 1st January to 31st December.
For example, if your tax year ends on 31st December 2024, the mandatory compliances start in 2024, and so forth.
State filings
State compliance deadlines
The deadline for state compliance is different for each state. Below are 2 state deadlines of Wyoming and Delaware
Wyoming: On or before the 1st of your company incorporation month. For example, if your LLC was incorporated on 25th April 2023, your compliance is due on or before 1st April 2024.
Delaware: On or before the 1st of June every year. For example, if your LLC was incorporated on 25th April 2023, your compliance is due on or before 1st June 2024.
FBAR compliances (if applicable)
You need to file FBAR if you are a US non-resident having a non-US bank account in the name of your US company. The bank account holds more than 10,000 USD.
6. How can we help you register your US company?
Now, you learn everything there is regarding US company formation, the pros and cons, the process, and the 7 mistakes of incorporating (More knowledge will be added in the future).
You can confidently start a business in the US using our guide.
To aid you on your journey, we offer a one-stop US company registration service.
- Register a company in the U.S in your chosen state;
- Open a corporate bank account in the U.S with a 99% success rate;
- Choose the right company types for tax optimization in the U.S;
- Apply for US business licenses;
- Get an affordable, professional registered office address for business;
- Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
- Handle all your tax accounting needs, timely annual filings, auditing, and more.
We aim to ensure you have, all the knowledge and expert support you need to succeed.
You only need to focus on your business, and Global Link Asia Consulting will handle all the rest.
7. FAQs about company registration in the US
If you are a US resident, you should open your company in your home state since it is cheaper to open and operate, and you avoid paying multiple fees in your home state and your company incorporation state.
For example, if you live in Florida, you should form your own company there.
If you are a foreigner, you can open a company in any US state. The 2 most popular choices are Delaware and Wyoming.
You don’t need to get a visa to open your company in the US. You can set up and manage your company online from overseas as the shareholder, or director of the company.
In case you plan to reside and work in the United States of America, you will need to apply for a work visa.
As a foreigner, your 2 top choices are a limited liability company (LLC) or a C-corporation (C-Corp).
A simple solution to determine which business structure to choose is to decide if you need to raise US capital. If the answer is yes, the C-corp is your choice. If not, the LLC is your option.
As a US resident, you have many options to choose from. The top choice is the LLC since it is cheaper to form, and easier to manage and file taxes.
In the future, you can choose to convert your LLC to a C-corp.
You should not register your company in a state where you have family/friends/relatives in the US if they are not part of your business or companies.
A virtual address is a business address you can use without the need to rent or occupy that space physically.
You need to have a virtual address in the state where you register your company.
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
- Registered adress;
- Foreign consular legalization;
- Trademark and patent protection registration in Singapore and the US;
- Employment Pass application in Singapore and Hong Kong;
- Website design, international SIM number provision;
- DUNS registration.
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
Global Link Asia Consulting Pte. Ltd. is pleased to announce the publication of the above insightful and informative article on our official website, Global Link Asia Consulting on 16th June 2019. The copyright for this article is exclusively held by Global Link Asia Consulting Pte. Ltd. Any unauthorized reproduction or distribution of this content without our express written permission is strictly prohibited. We value the protection of our intellectual property and appreciate your cooperation in adhering to these guidelines. Thank you for your continued support of Global Link Asia Consulting Pte. Ltd.
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