Company formation in the USA: A 5 step guide for foreign entrepreneurs.

The USA is one of the most popular destinations for foreign investments in the globe.

The size of its market, technology, the development of financial sector, government incentives and tax reductions are some of the benefits of incorporating a company in the US. Furthermore, the process of registering a company is easy and can be done mostly online.

The following are the 5 steps to starting your business in the USA:

#1 – Deciding which state to incorporate a business

The first step in registering a company in the USA as a foreigner is deciding the state in which you will like to start your business.

Different from most countries across the globe, in the USA a company registration is not done at the federal level, but at the state level.

That is, you will need to register your business in every state you wish to operate. However, it is possible to register a company in several states at the same time, if your company should operate across the country.

At Healy Consultants, we usually recommend our Clients to register a company in Delaware, Texas, Nevada or Wyoming.
However, the decision should consider the tax regime enforced. Corporate taxes enacted by the state governments, the incentives given by each state, as well as your own business plans and objectives.

#2 – What type of company should you register your business as?

The second step is deciding upon which company structure is more suitable for your business. Possible business entities include an LLC, a C-Corp, and a branch office. Each one of these company types comes with different requirements and benefits.

For small to medium companies, we usually recommend our Clients to establish an LLC, as it has low requirements – only one shareholder who can also act as the manager, and no minimum paid up capital. Furthermore, there are no restriction on the type of business activities that an LLC can pursue.

Once all the requirements are met and the documentation are ready, you will be able to incorporate the company. The timeframe for the incorporation process can vary from state to state, however overall the USA has an efficient and reliable system.

#3 – Obtaining your licenses and IDs

After company incorporation, you will have to apply for a Federal Employment Identification Number, the tax identification number, and register your company with the Labor authority if you wish to hire local employees.

Furthermore, depending on your company’s activities you may be required to apply for a specific license before conducting business.

#4 – Opening a corporate bank account for your company

Once your company is set up, you can proceed to open a bank account. The USA has many local and international banks to choose from. When starting the application process, you will be required to provide copy of incorporation documents, a business plan and the shareholders/directors’ documents. Additional information may be required depending on your business activity.

#5 – Applying for residence visas

After incorporation, you may also apply for residency visas if you are a foreign national and wish to reallocate to the USA. This may be the trickiest part of the entire process, as there are some strict requirements. To read more about the different type of American visas, please refer to our USA company formation support services page.

Overall the incorporation process is very straightforward. The USA allows 100% foreign owned companies and offers several incentives for foreign investments.


Planning to start your LLC in the USA? We have over 13 years of experience in helping entrepreneurs like you to start their LLCs in the USA.

Healy Consultants Group provides a wide range of corporate services across the world. Email or WhatsApp us now to find out more about our services.

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