A Guide to Starting a Company in the USA for Startups

The United States is one of the world’s most powerful entrepreneurial ecosystems, especially for technology-driven startups. For ventures focused on software, SaaS, e-commerce, fintech, or mobile applications, establishing a company in the U.S. is a strategic move that offers credibility, access to investment, seamless integration with global payment systems, and legal protection. This guide provides a detailed step-by-step explanation of how a startup can establish a business in the U.S., including the most suitable business structures, preferred states, setup costs, taxation processes, and ongoing legal obligations.

Advantages of Establishing a U.S.-Based Company

One of the biggest advantages of forming a U.S. company is the global trust and credibility it brings. For startups seeking investment, being incorporated in the U.S. signals professionalism and compliance with international standards. Additionally, it simplifies integration with global payment processors like Stripe and PayPal, enables the issuing of legal invoices to international clients, and provides stronger protection for intellectual property rights. The U.S. also offers a rich startup ecosystem, with accelerators, incubators, angel networks, and venture capital funds. Establishing your company in the U.S. connects you directly to this ecosystem.

Which Business Structure Should You Choose

The most common structures for startups in the U.S. are the Limited Liability Company (LLC) and the C Corporation (C-Corp). An LLC offers flexibility in taxation and is ideal for small teams and early-stage ventures. For digital entrepreneurs with a few co-founders or solo founders, an LLC is cost-effective and easy to manage. However, startups planning to raise funds, issue shares, and grow rapidly should consider a C-Corp, especially in Delaware. The C-Corp structure is preferred by U.S. investors due to its standardized process for equity issuance, shareholder agreements, and investor rights.

Which State Should You Incorporate In

Each U.S. state has its own regulations and tax rules, making state selection a critical decision. The most popular states among startups are Delaware, Wyoming, Florida, and California. Delaware is the top choice for those planning to form a C-Corp. It offers fast online registration, investor-friendly legal frameworks, and flexibility in corporate governance. Wyoming is ideal for LLCs thanks to its low annual costs and high privacy protection. If the startup will operate physically in a specific state, incorporation should be done in that state. For example, if the business will have an office in California, the company must be registered there.

Company Formation Process in the U.S.

You don’t need to be physically present in the U.S. to form a company. Entrepreneurs can complete the entire process online. First, choose the business structure and the state. Then select a company name and verify its availability. Appoint a registered agent with a physical address in the chosen state. Prepare the formation documents (Articles of Organization or Incorporation) and submit them to the Secretary of State. Once approved, apply for an EIN (Employer Identification Number) from the IRS. The EIN acts as the company’s tax ID and is required for banking, invoicing, and payment platform registrations. The entire process typically takes 3 to 10 business days.

Required Documents and Information

To form a U.S. company, you typically need a valid passport, proof of address, the company name and activity description, and the personal details of founders. A registered agent is legally required for receiving official documents in the chosen state. Some platforms may require video verification or a selfie for identity confirmation. Payment services like Stripe and PayPal also request these documents when opening business accounts.

Digital Company Formation Services

There are several online platforms that assist non-resident founders in setting up U.S. companies. These services handle company formation, EIN acquisition, bank account setup, and even tax reporting. Commonly used platforms include Firstbase, Stripe Atlas, Doola, Clerky, and LegalZoom. Most of them offer incorporation in Delaware or Wyoming and also provide optional add-ons such as trademark registration, equity management, and compliance assistance.

U.S. Taxation for Startups

Tax obligations vary depending on the chosen business structure and the state. LLCs are usually pass-through entities, meaning that profits pass directly to the owners, who then declare them in their own countries. However, if the LLC earns income within the U.S., it may still be subject to federal taxation. C-Corps are taxed at the corporate level, with a federal corporate tax rate of 21 percent. Some states may impose additional franchise or income taxes. The U.S. and Turkey have a double taxation treaty, which prevents paying tax twice on the same income. However, compliance with proper documentation and IRS forms is required. Consulting a tax advisor is highly recommended.

Opening a U.S. Bank Account

After incorporation, you need a U.S. business bank account for receiving payments and managing business expenses. Traditional banks may require a U.S. address and in-person visits. Alternatively, startups can use digital banks such as Mercury, Wise, Relay, Payoneer, and Brex. These fintech solutions accept international founders and offer multi-currency accounts and integrations with tools like Stripe. Banks typically ask for the company formation documents, EIN, passport, and a brief business description. Some may also require video verification.

Trademark and Intellectual Property Protection

After forming your U.S. company, you can apply for trademark protection through the United States Patent and Trademark Office (USPTO). This is especially useful for branding on Amazon, Shopify, and other platforms. Intellectual property such as software, designs, algorithms, and domain names can be assigned directly to the company. In the case of C-Corps, this is especially important during fundraising, as investors expect the IP to be owned by the corporation, not the founders personally.

Annual Compliance and Reporting

Every U.S. company is subject to annual obligations regardless of whether it is active. These obligations include submitting an annual report to the state, paying franchise taxes, filing a federal tax return with the IRS, and keeping the company’s contact and ownership information up to date. Neglecting these duties may result in penalties, loss of good standing, or closure of business bank accounts. It is advisable to work with an accountant or compliance service to keep the business in good standing.

U.S. Company Formation for Investment Readiness

Having a U.S.-based company significantly increases your chances of securing international investment. The Delaware C-Corp structure is the global standard for venture-backed startups. It provides a legal framework that supports issuing equity, setting up vesting schedules, creating option pools, and managing investor relations. Investors, especially U.S. VCs, are familiar with this structure and often require it. If your goal is to raise capital from accelerators, angel networks, or institutional funds, forming a Delaware C-Corp from the beginning is a strategic advantage.