The United States has long been a top destination for entrepreneurs from around the world. With access to a large consumer base, robust legal protections, and a dynamic startup ecosystem, the U.S. offers a strong foundation to build and scale a business. But how do you go from idea to incorporation? Here’s a practical guide to starting a company in the U.S.
Step 1: Choose the Right Business Structure
The first decision is selecting a business structure. The most common types are:
- Sole Proprietorship: Simple to start but not recommended for liability protection.
- Partnership: Suitable for businesses with two or more founders.
- Limited Liability Company (LLC): Popular for its flexibility, low compliance, and liability protection.
- C Corporation: Ideal for startups planning to raise venture capital; allows stock issuance and easier fundraising.
For many entrepreneurs, forming an LLC or a C-Corp in states like Delaware or Wyoming is a good starting point due to their business-friendly laws and streamlined registration processes.
Step 2: Register Your Business
Once you choose a structure, you’ll need to register your company with the state government. This includes:
- Choosing a unique business name
- Filing Articles of Incorporation (or Organization for LLCs)
- Paying the state filing fee
- Appointing a registered agent with a U.S. address
You can handle registration yourself through the Secretary of State’s website or use a legal service like Stripe Atlas, Clerky, or LegalZoom for convenience.
Step 3: Get an EIN from the IRS
An Employer Identification Number (EIN) is like a social security number for your business. It’s needed to open a business bank account, hire employees, and pay taxes. You can apply for an EIN online via the IRS website. Foreign founders without a U.S. Social Security Number may need to submit Form SS-4 by mail or fax.
Step 4: Open a U.S. Business Bank Account
A U.S. business bank account is essential for managing finances, accepting payments, and building financial credibility. To open one, you’ll typically need:
- Your EIN
- Company formation documents
- Proof of address (U.S.-based or international, depending on the bank)
Digital banking services like Mercury or Brex make it easier for international founders to set up remotely.
Step 5: Understand Taxes and Compliance
U.S. companies must comply with federal, state, and sometimes city tax obligations. This includes:
- Filing annual tax returns (Form 1120 for C-Corps)
- Paying federal and state income taxes
- Sales tax (for product-based businesses)
- Delaware Franchise Tax (if incorporated in Delaware)
Consider hiring an accountant or tax advisor who understands startup taxation and international founders’ needs.
Step 6: Protect Your Business
As you grow, protect your business with:
- Operating agreements or founder agreements
- Trademarks or copyrights for your brand
- Contracts with clients, partners, or employees
Legal clarity prevents disputes and strengthens investor confidence.
Final Thought
Starting a company in the U.S. may seem daunting, but with the right steps and support, it’s highly doable—even for international founders. The U.S. rewards bold ideas and entrepreneurial spirit. So plan well, start lean, and build with confidence.
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