Establishing a company in the United States offers an exciting opportunity for entrepreneurs seeking access to one of the world’s largest and most dynamic markets. The U.S. business environment provides strong legal protections, global credibility, and access to international financial systems. However, despite these advantages, the company formation process itself can be complex, especially for non-resident founders unfamiliar with American legal and tax systems.
To build a sustainable and compliant business, company owners must focus on four core principles. These include taking the right steps from the beginning, choosing the most suitable company structure, fulfilling all legal and tax obligations, and managing the business effectively on an ongoing basis. Each of these steps plays a critical role in ensuring that a company remains operational, compliant, and financially healthy.
Navigating these challenges requires both strategic planning and professional guidance. When handled correctly, the U.S. market offers long-term growth, operational stability, and significant opportunities for international entrepreneurs aiming to scale their businesses globally.
Introduction to the Company Formation Process in the United States
Starting a business in the United States follows a structured and regulated process. The first and most critical decision is determining the appropriate company type. Entrepreneurs typically choose between a Limited Liability Company (LLC) and a Corporation. Each structure has different implications in terms of taxation, governance, reporting requirements, and long-term growth potential.
After selecting the entity type, the next step involves choosing the state of incorporation and preparing the necessary formation documents. This stage is particularly important for foreign founders, as each state applies its own corporate laws, fees, and ongoing compliance requirements. Professional advisory support at this phase can significantly reduce errors, delays, and long-term compliance risks.
Opening a corporate bank account is another essential milestone in the formation process. Through delawareagency.com, foreign entrepreneurs can initiate the bank account opening process remotely, without the need to travel to the United States. Selecting the appropriate bank depends on factors such as business activity, ownership structure, expected transaction volume, and compliance considerations.
Foreign-owned companies may face corporate tax rates of up to 35%, while non-resident individuals can be subject to personal tax rates as high as 39.6%. Understanding these tax exposures, as well as ongoing reporting obligations, is vital. Many foreign founders encounter difficulties due to regulatory complexity, frequent legislative changes, and strict enforcement mechanisms.
While Delaware, Nevada, and New York remain popular jurisdictions because of their business-friendly environments, long-term success depends not only on incorporation, but also on effective tax structuring and continuous compliance planning.
Understanding Company Types: LLC, Corporation, and Others
The LLC and the Corporation are the most commonly used business structures in the United States. An LLC provides limited liability protection while offering flexibility in management and fewer corporate formalities. This makes it especially attractive to small and mid-sized businesses, freelancers, and international entrepreneurs entering the U.S. market for the first time.
Key advantages of LLCs include pass-through taxation, which allows profits to be taxed at the owner level rather than the entity level, fewer administrative requirements, and adaptable ownership structures. In certain cases, newly formed LLCs may also benefit from reduced initial state-level obligations, depending on the timing of formation and state-specific rules.
Corporations operate under a more formal governance framework and are owned by shareholders. An S Corporation may offer tax efficiency for eligible companies with fewer than 100 shareholders, while a C Corporation is often preferred by businesses seeking external investment, venture capital funding, or public market access.
Choosing between an LLC and a Corporation should be guided by long-term strategy, funding objectives, exit planning, and compliance tolerance. Naming conventions must also comply with state regulations, including the use of proper legal suffixes and the avoidance of restricted terms that may require special approval.
Required Documents and the Formation Process
To establish a company in the United States, several documents are typically required. These include valid identification, proof of address, company name registration, and applicable business licenses depending on the nature of the activity. Registering the company name officially establishes the legal existence of the business and allows it to operate in good standing.
Following incorporation, an Employer Identification Number (EIN) must be obtained from the Internal Revenue Service. The EIN functions as the company’s federal tax identification number and is required for banking, payroll, tax filings, and official correspondence with government agencies.
As of 2025, EIN issuance generally takes between one and three business days, allowing entrepreneurs to move quickly into the operational phase. In addition, every U.S. company must appoint a registered agent. This agent is responsible for receiving official legal notices and state correspondence on behalf of the company.
Errors made during this early stage can result in long-term compliance issues, particularly for foreign-owned entities subject to heightened regulatory oversight and reporting requirements.
Maintaining Good Standing
Maintaining good standing is an ongoing responsibility for any U.S. company. This requires timely tax filings, annual state reports, license renewals, and accurate beneficial ownership disclosures. Failure to meet these obligations may result in fines, administrative dissolution, or restrictions on business operations.
Regular financial reporting, proper bookkeeping, and professional oversight allow companies to monitor performance, manage risk, and make informed strategic decisions. When supported by the right structure, expert guidance, and a strong compliance framework, forming and operating a company in the United States can be efficient, transparent, and sustainable for the long term.
Tax Compliance and Professional Advisory Support
Tax compliance represents one of the most critical responsibilities for foreign-owned businesses operating in the United States. Failure to comply with U.S. tax and reporting requirements can lead to severe penalties, loss of good standing, or enforcement actions.
Samet Oynamis is a U.S. Tax Expert and an IRS-authorized Enrolled Agent (EA) specializing in U.S. taxation and international tax compliance. He advises non-resident individuals and foreign-owned companies on federal tax obligations, reporting requirements, and regulatory alignment.
Throughout his career, he has worked extensively with non-resident entrepreneurs, foreign-owned LLCs and Corporations, e-commerce businesses, and cross-border ventures. His expertise includes the preparation and management of technically complex filings such as Forms 5472, 1120, 1120-F, and 1040NR, which are commonly associated with higher compliance risk.
With the implementation of the Corporate Transparency Act and FinCEN Beneficial Ownership Information reporting requirements, Samet Oynamış actively supports clients in compliance strategy, risk mitigation, and proper corporate structuring to avoid penalties.
As an Enrolled Agent, he is fully authorized to represent taxpayers directly before the IRS. This includes handling IRS correspondence, corrective filings, compliance reviews, and audit-related inquiries. His ability to translate complex regulations into clear and practical guidance has positioned him as a trusted advisor within the non-resident taxation field.
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