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Company formation in USA


The U.S is a country of 50 states covering a vast swath of North America. Anyone whether a foreigner, non-citizen or U.S citizen living outside the country can start his/her business easily in USA. Also incorporating in United States can increase the credibility of your company which also helps in gaining the access to the US market and investors.

USA provides a great opportunity for entrepreneurs to invest their money in something worthy.

Here, is a step by step guide to form a company in USA:

1. Choose which type of business entity to form (corporation or LLC)– If any of the owners of the company are not US citizens then you have the option of either forming a LLC or Corporation. There is also another entity which is known as s corporation but it requires all shareholders must be citizen of US.

There is no restriction on the number of owners for a US corporation or LLC, which country the owners are from or whether they are individuals or other companies. While it is quite possible that your home country may have restrictions on which type of US Company may operate in that country so it is really important that you consult your local laws and be aware of this.

For detailed information on this topic you can search it on Google because it a major topic which has so many fundamentals.


2. Choosing which state to form your LLC or Corporation – In USA, you can form a corporation or LLC in any of the 50 states or even in Washington DC. State will be dependent on why you have formed the company because some states are more business friendly or international friendly than others.

For example like if you want to simply form a US company because you need to open a US bank account or merchant account or both and will not be opening a US branch or have a physical presence, then you might choose states with lower annual fee or if you will be opening a US branch with a physical office, then you want to choose the state where you will be opening the office. You can also go with the process of "Foreign Qualification" which helps to re-register the company like if your operating office is somewhere else and you want to open branch in some other state so that is possible with this process.

Or if you just want to Form the company for the purpose of obtaining US investment or venture capital, you may consider a Delaware corporation as this is the choice of major US investors and Venture capitalists.

3. Requirements to form a LLC or Corporation in USA – Once you have decided what to do in your business and what type of company to form and in which state there are only few more basic requirements left to form the company in USA which are as follows:

  • Choose a name for company – search for the name of your company you cannot choose the name same like some other already established company.
  • Provide a registered agent – registered agent is a person that must have a physical address in the state of formation, who is available in business hours, and will accept and sign for official legal and state documents for the company.
  • Provide names and addresses of the people/companies involved which includes directors, members, officers, secretaries.
  • Federal Employer identification number – also known as EIN or simply tax number is a number issued by the United States Internal Revenue Service (IRS) that is somewhat like an identification number for companies
  • Apostle or certificate of Authentication – if you intend to open a bank account in your home country then you may need to have the company formation documents certified with a "Certificate of Authentication". This is optional.


4. After your corporation or LLC has been filed some steps need to be taken depending upon your company requirements and purpose are as follows:

  • Arrangement of US physical business Address or Virtual Office – if you would like to receive business mail, client mail, etc. at a US address then you will need to arrange for a "mail forwarding" or "virtual office" service
  • Open a US bank account – if you want to accept US payments, open a US merchant account, or open a physical branch office in US. Eventually this has become a little bit difficult then before because of US-anti-terrorism laws, but there are still various options that makes this process easier which are like selecting that bank which also has branch in your home country, by forming your company in Delaware, Nevada or Wyoming and by always calling the bank first.
  • Open a bank account in your home country – if you need to open a bank account in your home country, the bank will more likely to have the "certificate of authentication".
  • Getting a US phone number – you can easily get a US number. In most cases this can be a toll free number or a local number where you can choose which area code you would like. Most of these phone number providers will have many online features such as voicemail, faxes, etc. Some providers are Nevada virtual office, Wyoming virtual office, Google voice and Skype.
  • Building a website and company logo – almost every business needs a basic website that provides information regarding company so that the customer may get an idea that in what products or services company is dealing in, it also provides credibility and nowadays required by many merchant account providers and US vendors.
    Fortunately domain names are cheap and websites can be built in few hours rather than months with new wizard based website templates.
  • Open a US merchant account – with help of this you can easily accept Credit Cards like MasterCard, Visa, Discover and American express in addition to electronics checks, etc.


5. Maintaining your LLC or Corporation – After getting all work done it is time to maintain your business entity in USA you can easily maintain that by following steps:

  • File an Annual Report: It is a simple document that updates the state on the owners, addresses and registered agent for your company, it can be filed online in many states.
  • Maintain a registered agent: Maintaining a registered agent is must and every company must have this.
  • Meet your home country requirements: Make sure if any filings, taxes or some other information is required by your home country. Provide it as soon as possible.
  • Pay US taxes (if required to pay): your company may or may not have to pay the taxes according to the criteria.

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A question may arise that what is LLC?

Basically, LLC is Limited Liability Company which is in US specific form of a private limited company. It is a business structure that can combine the pass through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

So that's all you need to know to establish a company in USA.