Foreign entrepreneurs set up businesses in the United States of America every single day, and for a variety of reasons. America represents one of the largest and most integrated markets in the entire world, and it offers a very low tax rate. It’s easier to sell in the United States, as it does not bother taxes and customs, and it gives foreign citizens access to venture capital, angel investors, and a variety of other public markets, too. Finally, starting a business in the US makes it easier to get a green card.

Advantages of USA Company Registration:

  • Lower Tax rate
  • Easier to sell in US market
  • Easier to get a visa to work
  • Easy Access the capital markets and easy to raise funds from Venture capitalists
  • Enhance the reputation of your company, both to US customers and many international markets
  • Possibly you can reduce your tax on US-source income

What are the ways in which corporations can be formed in USA?

There are two ways in which corporations in the United States can be formed, they are as follows;

  • Standalone entity- A corporation which is owned by the group of founders, employees, investors and another stakeholders as the separate entity from the existing company.
  • Subsidiary entity- A corporation may be formed as wholly an entity that is a wholly-owned subsidiary of existing companies registered outside the USA.

1. General Corporation (C Corporation)

A General Corporation (or "C Corporation") is the most common corporate structure for medium and large companies. Characteristics include:

  • Unlimited Number of Shareholders
  • Separate Legal Entity
  • Taxation of Profits and Losses at the Corporate Level
  • Possibility to Raise Capital with Sale of Shares
  • Easy Transfer of Shares
  • Tax Benefits
  • No Obligation for the Shareholders or Directors to be U.S. Citizens or Residents

Close Corporation

A Close Corporation is similar to a C Corporation, except for the following aspects:

  • Number of Shareholders Limited to 30
  • Transfer of Shares Conditional to Directors' Prior Approval
  • Prohibition to Trade Shares on the Stock Exchange

S corporation (only for USA citizens)

An S Corporation is actually a C Corporation which then obtains a special tax status from the Internal Revenue Service (IRS). The Corporation must apply to obtain this special status within a certain time frame after its incorporation. Instead of being taxed at the Corporation level, the profits and losses are transferred, for tax purposes, to the Shareholders (as though they were partners). Double taxation is avoided (i.e. at the corporate level and at the personal level) and does not alter any of the legal protection offered by a Company.

2. Limited Liability Company (LLC)

Introduced in the United States by the State of Wyoming in 1977 and now recognized by all U.S. States, the Limited Liability Company (LLC) is a profitable mix of a Corporation and a Partnership. As a general rule, the revenues and losses of an LLC are allotted to its Members (the equivalent of Shareholders in a Corporation), which avoids double taxation (to the LLC and its Members).

Do I need to be a US citizen for incorporating a company in US?

No, it is not mandatory to be a US citizen to incorporate a business in USA. The government welcomes founders from all around the world and the laws for business along with taxation are same for all irrespective of the country of origin.

Here are a few basic requirements that are must for company incorporations in USA

  • Choose a company name
  • Provide a Registered Agent
  • Provide Names and Addresses of the People/Companies Involved (Officers, Directors, Members, etc.)
  • Federal Employer Identification Number
  • Certificate of Authentication (Optional)

After the formation of a USA corporation or USA LLC there are a few things that must be done

  • Arrange a US physical business address or a virtual office
  • Open a US bank account
  • Open a bank account in your home country
  • Get a US phone number
  • Build a website and company logo
  • Open a US merchant account


It takes 3 to 6 weeks to make your incorporation formal.Typically, to incorporate, you need to file an Articles of Organization (if you’re forming an LLC) or Articles of Incorporation (if you’re forming a Corporation). You need to file respective forms and mail them to your state’s Secretary of State. You will hear back within 3 to 6 weeks with the official notice of your incorporation.

It will take 15 minutes to apply for an EIN.

The following documents will be created during the company registration process-

  • Incorporating Inc. / Corporation. Like Google Inc
  • Certificate of Incorporation
  • Bylaws of the company
  • Board Approval of Organizational Resolutions
  • Employer Identification Number from the IRS

We at Starters’ CFO assist you through the entire incorporation process in USA. We incorporate ‘C Corporation’ as well as ‘Limited Liability Company’. We carry out incorporation in New York, California, Delaware along with all other major states of the USA.

We also provide Tax and Legal support through our associates in USA.

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