Register a Business in the USA: Everything You Need to Know

The United States in 2025 continues to be one of the world’s most lucrative markets for global businesses. With its strong economy, innovation-driven ecosystem, and access to both domestic and international markets, the US is ideal for companies in technology, finance, healthcare, manufacturing, and services.

Cities like New York, San Francisco, Austin, and Miami remain key hubs for foreign investors and startups. The US offers a transparent legal system, robust intellectual property protection, and opportunities for foreign ownership across most industries. Companies planning to register a business in the USA can leverage these advantages to expand globally.

This guide covers market entry options, entity types, registration steps, required documents, costs, compliance requirements, and Employer of Record (EOR) alternatives to help foreign companies establish or expand their US presence.

Table of Contents

• Exploring Your Market Entry Options in the USA
• Business Structures You Can Choose From
• Comparing Business Structure Options
• How to Choose the Right Business Model for Your Operations
• Step-by-Step Guide to Company Registration in the USA
• Key Documents Required to Register Your US Company
• Post-Incorporation Essentials You Shouldn’t Ignore in the USA
• Additional Business Licenses and Registrations You Might Need in the USA
• Timeframe to Set Up a Business in the USA
• What Does It Cost to Incorporate a Company in the USA?
• Obstacles Global Founders May Face While Setting Up in the USA
• Incorporating as a Foreign-Owned Company: A Special Path
• Employer of Record: A Simpler Way to Hire in the USA Without Incorporation
• Why Asanify is the Ideal Partner for Global Companies Entering the USA
• Summary & Final Takeaways
• FAQs

Exploring Your Market Entry Options in the USA

International businesses can enter the US market in two primary ways:

Incorporating a Local Business Entity

Registering a US legal entity is best for companies planning a long-term presence. Incorporation provides the ability to hire locally, open US bank accounts, raise capital, and sign contracts directly. Popular options include forming a C-Corporation or Limited Liability Company (LLC).

Hiring Through an Employer of Record (EOR)

If your goal is to test the market, run pilot projects, or hire remote employees without immediate incorporation, an Employer of Record is a cost-effective and fully compliant solution. The EOR becomes the legal employer for your US team, managing payroll, tax compliance, and benefits, while you maintain operational control.

Business Structures You Can Choose From

Foreign investors can select from several entity types in the USA:

• C-Corporation (C-Corp) – Ideal for startups and companies planning to raise venture capital; taxed separately from owners.
  
• Limited Liability Company (LLC) – Flexible structure offering limited liability and pass-through taxation.
  
• S-Corporation (S-Corp) – For small businesses with US owners; provides tax pass-through benefits but limits foreign ownership.
  
• Branch Office – Extension of a foreign company; income is taxed in the US and may expose the parent company to liability.
  
• Representative Office – Used for market research or liaison activities; cannot conduct revenue-generating operations.
  

Comparing Business Structure Options

Structure	Ownership	Liability	Taxation	Best For
C-Corporation	1+ shareholders	Limited	Corporate + dividend tax	Startups and large enterprises
LLC	1+ members	Limited	Pass-through or corporate tax	SMEs and service businesses
S-Corporation	US citizens only	Limited	Pass-through tax	Small US-owned companies
Branch Office	Foreign parent	Parent liable	Corporate income tax	Extensions of foreign companies
Representative Office	Foreign parent	Parent liable	None	Market research or liaison only

How to Choose the Right Business Model for Your Operations

The choice depends on your business objectives, growth plans, and tax considerations:

• C-Corp is best for raising venture capital and scaling operations.
  
• LLC is flexible and ideal for small to medium-sized companies with simpler tax goals.
  
• Branch Office suits foreign companies expanding operations without creating a separate legal entity.
  
• Representative Office is useful for early-stage market exploration.
  
• EOR is optimal for testing the US market quickly and hiring remote teams across states.
  

Suggested Read: Employer of Record USA: A Detailed Guide on EOR 2025

Step-by-Step Guide to Company Registration in the USA

1. Choose your business structure based on liability, taxation, and operational needs.
   
2. Select a state of incorporation (Delaware, Wyoming, and Nevada are popular for foreign investors).
   
3. Reserve your business name with the Secretary of State in your chosen state.
   
4. Appoint a registered agent to receive legal and tax correspondence in the US.
   
5. File the formation documents (Articles of Incorporation for a corporation or Articles of Organization for an LLC).
   
6. Obtain an Employer Identification Number (EIN) from the IRS for tax and banking purposes.
   
7. Open a US corporate bank account to manage capital and operational funds.
   
8. Register for state and federal taxes and obtain any required licenses or permits.
   
9. Comply with employment and payroll laws if you plan to hire employees directly.
   
10. Maintain annual reports and filings to stay in good standing with state authorities.
    

The full process can take 2–6 weeks, depending on the state and banking setup.

Key Documents Required to Register Your US Company

• Passports or IDs of all shareholders and directors
  
• Proof of residential address for owners and directors
  
• Articles of Incorporation or Organization
  
• Operating Agreement (for LLC) or Corporate Bylaws (for C-Corp)
  
• Employer Identification Number (EIN) application
  
• Bank reference letters for capital account setup
  
• Any sector-specific licenses or permits
  

Post-Incorporation Essentials You Shouldn’t Ignore in the USA

After registration, businesses must ensure ongoing compliance:

• Open and maintain a corporate bank account
  
• File annual federal and state tax returns
  
• Maintain accurate accounting and financial records
  
• File annual reports with the Secretary of State
  
• Provide employee benefits and comply with labor regulations
  

Additional Business Licenses and Registrations You Might Need in the USA

Depending on the industry and state, companies may need:

• Sales tax permits for retail and e-commerce operations
  
• Professional licenses for consulting, healthcare, or financial services
  
• Import/export registrations for trading businesses
  
• Federal permits for sectors like transportation or energy
  

Timeframe to Set Up a Business in the USA

Step	Estimated Duration
Business name reservation	1–3 business days
Filing incorporation documents	3–7 business days
EIN issuance and bank account setup	5–10 business days
Licensing and post-setup compliance	5–10 business days
Total Time to Register	2–6 weeks

What Does It Cost to Incorporate a Company in the USA?

• State filing fees: $50–$500 (varies by state)
  
• Registered agent services: $100–$300 annually
  
• EIN application: Free
  
• Bank account setup and compliance costs: $500–$1,000
  
• Professional services (legal, accounting): $1,000–$5,000
  

Total incorporation costs typically range $1,500 to $6,000, excluding optional licenses.

Obstacles Global Founders May Face While Setting Up in the USA

• Multi-state tax compliance and registrations for remote hiring
  
• Federal and state employment regulations and benefits administration
  
• Banking setup delays for foreign-owned companies
  
• Need for legal and accounting expertise for proper compliance
  
• Sector-specific regulations and licenses
  

Incorporating as a Foreign-Owned Company: A Special Path

Foreign companies can form:

• C-Corporations or LLCs with 100% foreign ownership
  
• Branch offices of foreign entities
  
• Representative offices for non-commercial activities
  

While US law allows full foreign ownership, opening a bank account and managing multi-state compliance often require professional assistance.

Employer of Record: A Simpler Way to Hire in the USA Without Incorporation

Entering the US market does not always require setting up a local legal entity. For many global companies, especially those testing market potential or running pilot projects, an Employer of Record (EOR) provides a quick and fully compliant way to hire employees in the United States without the cost, time, and complexity of full incorporation.

From a legal perspective, the EOR acts as the official employer of your US-based workforce. It manages employment contracts, payroll, benefits, and federal and state tax compliance. Meanwhile, your company retains full control over employees’ daily responsibilities, work assignments, and performance management.

This model is ideal for:

• Testing the US market before committing to a full entity setup
• Running short-term or project-based teams for sales, marketing, or development
• Hiring remote employees across multiple US states without managing state-by-state registrations
• Rapidly expanding into North America without the administrative burden of incorporation

Using an EOR helps foreign companies overcome common challenges such as:

• Drafting US-compliant employment agreements and offer letters
• Managing payroll across federal and multi-state tax jurisdictions
• Administering statutory benefits such as Social Security, Medicare, and unemployment insurance
• Providing health insurance and complying with Affordable Care Act (ACA) requirements

By leveraging an EOR, businesses reduce risks related to non-compliance, worker misclassification, and complex tax obligations, while achieving a fast and cost-effective market entry in the US.

Suggested Read: Labour Laws in the USA: A Complete 2025 Guide

Why Asanify is the Ideal Partner for Global Companies Entering the USA

Asanify provides end-to-end support for global businesses expanding into the United States, offering both full incorporation services and Employer of Record (EOR) solutions. For companies with long-term plans, we handle the entire process:

• Incorporating entities such as C-Corporations, LLCs, or branch offices
• Registering for federal and state tax identification numbers
• Managing payroll setup and multi-state employment compliance
• Handling ongoing HR, benefits, and labor law adherence
• Assisting with state-specific registrations and insurance requirements

If you are not ready to incorporate, our EOR solution allows you to hire US employees in just a few days. Asanify manages all employment contracts, payroll processing, taxes, and benefits administration, ensuring your team operates legally without administrative overhead.

We have successfully assisted clients across Europe, Asia, the Middle East, and Latin America in establishing US teams quickly and compliantly. Whether you are a startup testing market demand or a multinational deploying a strategic team, Asanify makes your US expansion seamless and risk-free.

Summary & Final Takeaways

The United States in 2025 offers vast opportunities across technology, finance, healthcare, and manufacturing. Companies have two main options for market entry: incorporate a US legal entity or hire through an Employer of Record (EOR).

If your objective is to build a long-term presence, raise capital, or secure large local contracts, setting up a registered entity like a C-Corp or LLC is the best approach. However, if you are focused on rapid entry, pilot teams, or remote hiring across multiple states, an EOR enables you to start operations immediately while remaining fully compliant with US labor regulations.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.