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How to start a business in the USA? Requirements, taxes & more
Do you want to start your own business in the USA? In this guide, you'll find detailed instructions on everything you need to do.
Starting a business in the United States is an attractive option for entrepreneurs and business owners around the world. The U.S. offers a stable and business-friendly environment, making it a great place for those who are just starting out.
The U.S. is also a global business hub, so building your brand there can make it easier to expand into international markets.
However, starting a business involves several legal and administrative steps that must be completed correctly to avoid delays and stay compliant.
This guide explains the requirements, costs, legal structures, tax considerations, and registration process for starting a business in the United States.
1. How much does it cost to start a business in the United States?
The cost of starting a business in the United States can vary depending on the state where you register your company and whether you handle the process yourself or hire a professional service to help you.
As of 2026, there is no federal minimum capital requirement to start a business in the United States. In most states, you can even register a company with just $1 in capital.
State filing fees usually cost between $50 and $500. Many entrepreneurs choose states like Delaware and Wyoming because of their low fees and business-friendly policies.
You’ll also need a Registered Agent, which usually costs between $100 and $300 per year. If you hire a lawyer or a business formation service to handle the paperwork, expect to pay an additional $500 to $2,500.
Other potential expenses include obtaining an Employer Identification Number (EIN). It’s free through the IRS, but you’ll pay a fee if you use a service to apply for it. Opening a business bank account may also require an initial deposit, depending on the bank.
2. What types of businesses can be opened in the United States?
For foreign entrepreneurs, choosing the right business structure is an important step. It affects your legal responsibilities and taxes. Here are the main options to choose from.
- Limited Liability Company (LLC): This is a great option for freelancers and small international businesses. It protects your personal assets and offers flexible tax benefits. In most cases, profits go directly to the owners instead of being taxed at the business level, making it a good choice for businesses without a physical location in the U.S.
- C-Corporation: This is the best option for startups looking to raise venture capital or go public. Unlike an LLC, a corporation is subject to double taxation: the company pays taxes on its profits, and shareholders pay taxes on dividends. However, its share structure makes it particularly attractive to investors.
- Branch: This option allows foreign companies to operate directly in the U.S. without setting up a separate legal entity. However, the parent company remains legally responsible for the business in the United States.
3. Requirements for starting a business in the United States
You don’t need to be a U.S. resident or have a U.S. visa to own a business in the United States. However, you must meet a few requirements to register your company.
- Registered Agent: It is mandatory to designate a person or company with a physical address in the state of incorporation to receive legal notices.
- Mailing Address: Even if you don’t live in the United States, your business needs a U.S. address to receive official mail. Most business owners use the address provided by their Registered Agent or a virtual office.
- EIN (Employer Identification Number): This is your company’s tax ID number. It’s required to hire employees, pay taxes, and open a business bank account.
- Identification Documents: You’ll need a valid passport for yourself and any business partners or directors to complete the registration process.
- Operating Agreement or Articles of Incorporation: These are internal documents that govern the company’s operations and ownership.
Many states, including Wyoming and New Mexico, allow businesses to be registered entirely online, which simplifies the process for entrepreneurs living abroad.
4. Taxes when starting a business in the United States
The U.S. tax system is divided into three levels: federal, state, and local. Here’s what you need to know.
For example, if you’re a foreign business owner, it’s important to understand whether your company is considered “Engaged in Trade or Business in the U.S.” (ETBUS). This status can affect your U.S. tax obligations.
If your business doesn’t have employees, an office, or a warehouse in the United States, you may not have to pay federal income tax. However, you’ll still need to file certain reports with the IRS.
The federal corporate tax rate is 21%. State taxes vary. For example, states like Florida and Texas don’t have a personal income tax, while Delaware charges an annual franchise tax.
The U.S. doesn’t have a VAT. Instead, it uses a sales tax, which varies by state and, in some cases, by county.
Finally, we recommend that you look into double taxation treaties to avoid paying taxes on the same income in two countries.
5. Steps to start a business in the United States
Starting a business in the United States involves several steps to make sure your company is legally set up from day one. This step-by-step guide explains how to register your business in the United States in 2026.
1. Choose the state and corporate structure
Choose whether to form an LLC or a corporation, and decide which state to register in. Delaware is a popular choice for companies seeking investors, while Wyoming is known for its lower fees and business-friendly regulations.
2. Register the entity with the Secretary of State
Next, file your formation documents with the Secretary of State. LLCs file Articles of Organization, while corporations file Articles of Incorporation. Once they’re approved, your business is officially registered in the United States.
3. Obtain the EIN
Apply for your EIN through the IRS. As mentioned earlier, if you don’t have a Social Security Number (SSN), you’ll need to submit Form SS-4 by fax or mail. This process can take several weeks.
4. Draft internal documents and open a bank account
Next, prepare your Operating Agreement and open a business bank account. Many online banks let foreign business owners open an account remotely with an EIN and their business registration documents.
6. Internet for business trips to the United States
If you’re traveling to the United States to start a business or move your operations there, having a reliable internet connection is essential.
We recommend Holafly’s monthly plans, which offer unlimited data or 25 GB options. They work in over 160 countries and allow you to share your connection with your laptop, tablet, and other devices.
This means you won’t have to rely on public WiFi or other internet connections, helping keep your business and customer data secure. You’ll also have reliable internet on the go, making it easy to use maps, find directions, and get to meetings.
You’ll also have access to Always On, which keeps you connected in over 70 countries. It comes with 1 GB of free data each month, so you always have internet when you need it most.
Frequently asked questions about starting a business in the United States
Yes. Many digital banks now let you open a business bank account from abroad, so there’s no need to travel to the United States during the process.
No. You can complete the entire process remotely with the help of specialized agencies. Most of the paperwork and registration can now be done online in the United States.
No. In most cases, you don’t need a U.S. partner to start a business or invest in the country. You can own 100% of your company.
No. You can own 100% of a U.S. business while living abroad. You only need a visa, such as an E-2 visa, if you plan to move to the United States to run the business.
State registration usually takes 2 to 10 business days. Getting an EIN as a foreign business owner can take up to 4 more weeks, so the full process usually takes about six weeks.
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Hi! I'm a Spanish-English translator working with Holafly, helping bring travel content to life for curious travelers. As a digital nomad with a passion for exploring, I'm always adding new spots to my bucket list. If you love to travel like me, stick around because you're in the right place to find inspiration for your next trip! ✈️🌍
