Company Formation in USA: Process & Requirements Explained

Thinking of launching your business in the United States?

The USA is one of the most sought-after destinations for entrepreneurs worldwide—and for good reason. With its stable legal system, access to capital, innovation-driven economy, and massive consumer base, the U.S. offers a business environment unlike any other.

Whether you’re a global startup founder, e-commerce entrepreneur, or investor, forming a company in the USA can significantly boost your credibility, market access, and operational flexibility.

But choosing the right business structure, state of incorporation, and meeting regulatory obligations are critical steps that require careful planning.

In this comprehensive guide, we’ll walk you through everything you need to know about setting up a company in the U.S.—from selecting the right entity and state, to banking, compliance, and tax implications—so you can expand with confidence and clarity.

Why Register a Company in the USA?

The USA remains one of the top destinations for global entrepreneurs—and for good reason:

• Access to Global Markets: Tap into the world’s largest consumer economy.
• Favorable Business Laws: Transparent, well-defined legal framework.
• Investor Friendly: Home to venture capitalists, angel investors, and robust banking infrastructure.
• Skilled Workforce: Access to world-class talent across industries.
• Tech and Innovation Hub: Especially in sectors like SaaS, AI, biotech, logistics, and fintech.

Types of Business Structures in the USA

Choosing the right structure is crucial. Below is a quick comparison:

Best States to Register a Company in the USA

Choosing the right state for company formation in the USA is a important decision that affects your taxes, legal compliance, and business environment. Each state has its own set of advantages tailored to specific business needs.

1. Delaware

Delaware remains the top choice for corporations, especially for startups seeking funding. It offers a specialized Court of Chancery for business disputes, making it highly predictable for legal matters.

2. Wyoming 

Wyoming is a favorite among foreign entrepreneurs due to its zero state income tax, privacy-friendly policies, and low annual fees. It’s ideal for holding companies or remote businesses.

3. Florida 

Florida attracts retail, tourism, and e-commerce ventures with no personal income tax and a growing startup ecosystem.

4. Texas 

Texas boasts a booming economy and pro-business climate, offering tax advantages and access to a large, skilled workforce.

5. California

California, while costly and highly regulated, is unmatched for tech startups and venture capital access in Silicon Valley. Choose wisely based on your business goals.

Step-by-Step Process to Register a Company in the USA

Step 1: Choose Your Business Structure

Begin by deciding which business entity in the USA suits your goals—LLC, Corporation, Sole Proprietorship, or Partnership. Each has different legal implications, tax treatments, and investor appeal. 

For example, an LLC is flexible and great for small to medium businesses, while a C-Corporation is ideal for scaling or attracting venture capital.

Step 2: Pick a State of Incorporation

Not all states are equal when it comes to business regulations and taxes. Delaware is a top choice for corporations due to its business-friendly laws and court system. Wyoming offers privacy and low maintenance costs. 

Choose a state that aligns with your tax preferences, operating needs, and legal environment.

Step 3: Appoint a Registered Agent

Every US business must designate a registered agent—a person or company with a physical address in the state of incorporation. This agent receives legal documentations & official government correspondence on your behalf.

Step 4: Choose a Unique Business Name

Your business name has to be different, compliant with state naming laws, and ideally trademark-eligible. Do a name search on the state’s Secretary of State website and, if needed, check trademark availability at USPTO.gov.

Step 5: File Formation Documents

Next, file your company formation paperwork. For an LLC, submit the Articles of Organization; for a Corporation, file the Articles of Incorporation. These documents typically include details about company structure, registered agent, and owner/director names.

Step 6: Acquire an EIN (Employer Identification Number)

The EIN, issued by the IRS, is essentially your company’s tax ID. It’s required for tax reporting, hiring employees, and opening bank accounts. You can apply for an EIN online for free on the IRS website.

Step 7: Draft Internal Company Documents

Even if not legally required in every state, it’s highly advisable to prepare Operating Agreements (for LLCs) or Corporate Bylaws (for Corporations). These define the internal management structure and responsibilities among owners or directors.

Step 8: Open a US Business Bank Account

To operate professionally, open a corporate bank account. Required documents typically include your EIN, formation papers, owner IDs (like passports), and a US-based address (which can be a virtual office in some cases).

Step 9: Obtain Licenses and Permits

Depending on your business nature and state, you may need additional permissions such as:

• Sales tax permits
• Zoning and occupancy permits
• Import/export licenses
• Food handling or health permits

To guarantee complete compliance, check with federal, state, and municipal authorities.

Step 10: Register in Other States (if applicable)

You must apply for a foreign qualification in each state where you want to conduct business if those jurisdictions are not under your incorporation jurisdiction. This allows you to legally do business beyond your original registration state.

Required Documents for USA Company Registration

Here’s a basic checklist:

• Passport/ID of all directors and owners
• Articles of Incorporation / Organization
• Operating Agreement (LLC) or Bylaws (Corp)
• Registered Agent agreement
• EIN certificate from IRS
• Proof of US address (utility bill, lease, or virtual office)
• Share certificates (if applicable)
• Business plan (for visa or investor requirements)

Opening a Business Bank Account in the USA

You’ll need:

• Company formation documents
• EIN
• Valid passport
• US business address
• Operating agreement or bylaws

Banks offering non-resident accounts include:

• Mercury
• Brex
• Relay
• Wise (for USD-based accounts)

Business Visas for Foreign Entrepreneurs

While registration can be done remotely, a US visa is needed if you plan to relocate.

Common US Business Visa Options:

USA Taxation for Foreign-Owned Companies

Corporate Taxes:

• Federal Tax: Flat 21%
• State Tax: Varies by state (0–12%)
• Branch Profits Tax (BPT): 30% (may be reduced by treaty)
• Withholding Tax on Dividends: 30% (treaty may apply)

Tax Filing Deadlines:

• Annual Return (Form 1120): Due 15th day of the 4th month post tax year.
• Extension Available: 6 months
• Calendar vs Fiscal Year: You can choose either.

Key Compliance Requirements

Federal:

• File annual tax returns
• Maintain EIN and up-to-date IRS records
• BOI Reporting (New from 2024 via FinCEN)

State-Level:

• Annual or Biennial Reports
• Franchise tax (in some states)
• Registered agent renewal

Ongoing:

• Renew licenses/permits
• Maintain updated business records
• Keep track of beneficial ownership if required

Conclusion

Registering a company in the USA is more than just a business move—it’s a strategic gateway to global markets, powerful networks, and unmatched credibility. Whether you’re a tech founder, e-commerce seller, consultant, or investor, forming a US-based entity allows you to tap into the world’s largest economy with ease and flexibility.

From selecting the right state and entity structure to navigating EIN applications, compliance, and banking, the process may seem complex—but with the right guidance, it’s completely manageable, even from abroad.

At OnDemand International, we simplify every step of your USA company registration journey. Our global team ensures your paperwork, filings, and legal setup are handled professionally and efficiently—so you can focus on launching, scaling, and growing your business without unnecessary delays.