How to Start a Company in the United States: A Step-by-Step Guide

The United States is one of the world’s largest and most dynamic economies, offering countless opportunities for entrepreneurs. With access to a huge consumer market, strong infrastructure, and a culture that encourages innovation, the U.S. is a top choice for starting and expanding a business.

Here’s what you need to know if you’re considering setting up a company in the U.S.

Why Start a Business in the U.S.?

Large market – Over 330 million consumers with high purchasing power.
Global influence – Home to major industries from tech and finance to healthcare and entertainment.
Access to funding – Wide range of venture capital, angel investors, and government programs.
Innovation hub – A strong environment for startups, especially in sectors like tech, biotech, and green energy.
Variety of business structures – Flexibility to choose the entity that fits your goals.

Step 1: Choose Your Business Structure

The U.S. offers several types of business entities, including:

Sole Proprietorship – Simple, but owner is personally liable for debts.
Partnership (General or Limited) – Shared ownership; liability depends on type.
Limited Liability Company (LLC) – Flexible, protects owners’ personal assets.
Corporation (C-Corp or S-Corp) – Separate legal entity; good for attracting investors.
Nonprofit Corporation – For charitable, educational, or social purposes.

Tip: Many foreign entrepreneurs choose an LLC or C-Corp for liability protection and credibility.

Step 2: Choose a State

Each U.S. state has its own rules and costs for company formation. Popular choices include:

Delaware – Business-friendly laws, widely used for startups and corporations.
Wyoming – Low fees, privacy-friendly regulations.
Nevada – No state corporate tax, strong asset protection.
California / New York – Best if you want to operate directly in those markets.

Step 3: Register Your Business Name

Make sure the name is unique and complies with state rules.
Check availability with the Secretary of State in your chosen state.
You may also want to register a trademark for nationwide protection.

Step 4: File Formation Documents

Depending on your business type, you’ll need to submit:

Articles of Organization (for LLCs).
Articles of Incorporation (for Corporations).
Pay the required state filing fees.

Step 5: Get an EIN (Employer Identification Number)

Issued by the IRS, the EIN is like a business social security number. It’s required for:

Opening a U.S. business bank account.
Hiring employees.
Filing taxes.

Foreign entrepreneurs can apply for an EIN without needing a U.S. SSN.

Step 6: Open a U.S. Business Bank Account

You’ll need:

Your incorporation documents.
EIN confirmation letter.
Passport/ID of company owners.

Step 7: Register for Taxes & Permits

Federal, state, and local taxes may apply depending on your business activity.
Certain industries (alcohol, finance, healthcare, etc.) require special licenses or permits.

Step 8: Stay Compliant

File annual reports and pay renewal fees (varies by state).
Maintain accounting records for tax reporting.
Keep company documents (bylaws, operating agreements) up to date.

Costs & Timeline

State filing fees: $50 – $500 depending on the state.
EIN: Free.
Legal/consulting fees: $500 – $2,000+ if you use a service provider.
Timeline: Company formation can take a few days to a few weeks depending on the state.

Final Thoughts

Starting a company in the United States opens doors to one of the world’s biggest markets. The process is relatively straightforward, but it’s important to choose the right state, structure, and compliance strategy for your goals.

For foreign entrepreneurs, working with a U.S.-based business attorney or incorporation service can make the process much smoother.