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How to Start a Company in the USA

Updated: Aug 23, 2022



Forming a company in the USA is an excellent way to Starting a business and expand into the United States market, whether you're a foreign citizen or if you operate a non-US based company.

The most popular business structure among new business owners to establish a US company is an LLC or limited liability company. Anyone can create an LLC in the United States; you do not need to be a US citizen, a US firm or a US resident to start a US business.


A Step-by-Step Guide to Creating a US LLC

One of the most important things you need to think about when forming your US LLC is staying compliant with all state and federal guidelines so that you're allowed to operate a business entity in America even if you live outside the country, also to avoid any penalties or negative status with the state that can lead to your LLC being inactive. Business Registration is a US business service that provide a comprehensive package of services from start to finish, including setting up your American bank account. You can also use our guides and do the work yourself.

The most important LLC formation tasks are choosing your state, forming the LLC, getting an Employer Identification Number (EIN) That will be used to file your Federal Tax returns, and having a physical US mailing address. We've provided easy-to-follow steps for each task below.

It is important to remember that forming an LLC in the United States does not provide visa sponsorship or green card eligibility no matter what type of business you have.

Anybody can start an LLC in the United States, regardless of nationality or incorporation status. You don't have to be a US citizen or a company to start a business in the United States. In the United States, foreign citizens and businesses may create Limited liability companies.

The steps to form your foreigner-owned LLC are:

  1. Choose a State in which you will form the LLC in the USA.

  2. Choose a Unique Name for Your LLC

  3. Hire a Registered Agent Service

  4. File Your LLC With the State

  5. Create an LLC Operating Agreement

  6. Get an EIN

  7. Get a Physical US Mailing Address

  8. Open a US Business Bank Account

  9. Prepare for US Tax Filing

Thousands of foreign-based entrepreneurs have used our services to legally establish their companies in the United States.


1. Choose a State in Which you will Form the LLC in the USA

It is usually recommended to create an LLC in a state without state taxes since you just have to deal with the US federal taxes. However, if you need to establish offices or have a physical presence in a specific state, you'll need to form an LLC there.

When determining which state to form your US LLC, you should primarily consider if you or your employees will have a physical presence, like an office or job site, in a specific state.

If this is the case, forming your LLC in that state is the best option. This eliminates the need to register your LLC in multiple states and use registered agents and will save on filing income tax return.

If your business does not require a physical presence, you should form your LLC in one of the three more tax-friendly states: Wyoming, Delaware, or Nevada. This way, you'll only need to handle US federal taxes.

We suggest Wyoming since it has foreigner-friendly laws, lower filing and annual costs, and no state, personal, corporate, or capital gains taxes.


2. Choose a Unique Name for Your LLC

Depending on the state, there are different rules about what an LLC's name can be. As a general guideline:

  • Your name must include the phrase "limited liability company," or one of its abbreviations (LLC or L.L.C.).

  • Your new business name cannot include words that could confuse your LLC with a government agency (e.g., FBI, Treasury, State Department, etc.).

  • Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

  • Checking if your desired website URL is available is crucial. Even if you don't want to make a business page right now, buying the domain name prevents others from taking it in the future. You may also consider registering a trade mark so that no one else can use your company's name.

Another thing to consider when selecting a name is the possibility of future change. It will be difficult to add more services like web design and SEO if you name your firm "Logo by Andy."


3. Hire a Registered Agent Service

What is a registered agent? A registered agent is a person or business that sends and receives legal papers on your behalf. This person or entity must be available during business hours M-F so that they can be hand-served with important documents on the company's behalf.

All LLCs must elect and register a registered agent in their state of operation. The chosen individual or corporation has to be authorized to do business where the LLC is located and usually needs to reside there as well.

A registered agent service is usually the best option for a non-resident owned business. The company you hire will have a physical office address in your state, and be open all required hours to accept legal notices in their office.


4. File Your LLC With the State

To officially file an LLC, you will need to file your documents with the state.

The official name for this document may be "Articles of Organization," but it is commonly referred to as a Certificate of Formation or Certificate of Organization. Your LLC formation document outlines how your business will run structurally.

Is your company a member-managed or manager-managed entity? This is a crucial distinction that depends on how your firm runs. Member-managed- one of the LLC's members (owners) will run the company day to day vs. The LLC will hire someone to be a manager as an employee, which is known as manager-managed.

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