How to Register a Business in the US: A Complete Step-by-Step Guide (2025 Edition)

Starting a business in the United States is a dream for entrepreneurs across the world. The US offers one of the most business-friendly environments globally, with access to a massive consumer market, strong legal protections, global credibility, and scalable growth opportunities.

Whether you are a US resident, foreign entrepreneur, startup founder, freelancer, or international company, understanding how to register a business in the US correctly is the foundation of long-term success.

This comprehensive guide explains everything you need to know about US business registration, from choosing the right business structure to tax registration, compliance, costs, timelines, and common mistakes—making this the most complete guide available online.


Why Register a Business in the United States?

Before diving into the registration process, it’s important to understand why the US is one of the best countries to start a business.

Key Benefits of Registering a Business in the USA

  • Access to the world’s largest consumer economy
  • Strong legal and intellectual property protection
  • High trust and credibility with global clients
  • Easy access to international payments and banking
  • Investor-friendly ecosystem (VCs, angels, accelerators)
  • Scalable infrastructure for startups and enterprises
  • No citizenship or residency requirement for many business types

Foreign entrepreneurs can legally own 100% of a US company, making it highly attractive for global founders.


Who Can Register a Business in the US?

You can register a business in the US if you are:

  • A US citizen
  • A US permanent resident (Green Card holder)
  • A non-US resident / foreign national
  • A startup founder
  • A freelancer or consultant
  • An international company expanding to the US

👉 You do not need a US visa or SSN to form a US company (especially LLCs and Corporations).


Step 1: Choose the Right Type of Business Entity in the US

The first and most critical decision is selecting the correct legal structure. This affects taxes, liability, compliance, and scalability.

Common Types of Business Structures in the USA


1. Sole Proprietorship

Best for: Individuals, freelancers, very small businesses

Features:

  • Owned by one person
  • No legal separation between owner and business
  • Easy and low cost to start
  • Unlimited personal liability

Pros:

  • Simple setup
  • Minimal paperwork

Cons:

  • High personal risk
  • Limited scalability
  • Not ideal for investors

2. Partnership (General or Limited)

Best for: Businesses with 2 or more founders

Features:

  • Shared ownership
  • Profits and liabilities shared
  • Requires partnership agreement

Cons:

  • Partners are personally liable (general partnership)
  • Complex dispute management

3. Limited Liability Company (LLC) – Most Popular

Best for: Startups, small to medium businesses, foreign founders

Why LLC is the most preferred option:

  • Limited liability protection
  • Flexible tax options
  • No requirement for US residency
  • Simple compliance
  • 100% foreign ownership allowed

Pros:

  • Personal assets protected
  • Pass-through taxation
  • Easy management

Cons:

  • Self-employment taxes may apply
  • State-level compliance required

👉 LLC is the best choice for most entrepreneurs.


4. Corporation (C-Corp or S-Corp)

Best for: Venture-backed startups, large businesses

C-Corporation

  • Separate legal entity
  • Ideal for raising venture capital
  • Double taxation (corporate + dividends)

S-Corporation

  • Pass-through taxation
  • Restricted to US residents only

Popular choice:
👉 Delaware C-Corp for startups targeting investors


Step 2: Choose the Best State to Register Your Business

You do not need to register your business in the state where you live.

Most Popular States for Business Registration


1. Delaware (Most Preferred)

Why Delaware is famous:

  • Business-friendly laws
  • Specialized business court (Court of Chancery)
  • Investor-preferred jurisdiction
  • Flexible corporate governance

Best for:
Startups, tech companies, VC-funded businesses


2. Wyoming

Benefits:

  • No state income tax
  • Low annual fees
  • Strong privacy protection

Best for:
LLCs, solopreneurs, asset holding companies


3. Florida & Texas

Benefits:

  • No personal income tax
  • Large local markets

Best for:
Businesses operating physically in these states


Step 3: Choose and Register Your Business Name

Your business name must be:

  • Unique within the state
  • Not misleading
  • Compliant with state naming rules

How to Check Name Availability

  • Visit the Secretary of State website of your chosen state
  • Search business name database
  • Reserve name (optional in some states)

You may also want to:

  • Secure the domain name
  • Check trademark availability (USPTO)

Step 4: Appoint a Registered Agent

A Registered Agent is mandatory for all US businesses.

Role of a Registered Agent

  • Receives legal notices
  • Handles government correspondence
  • Must have a physical US address

👉 Foreign founders must use a registered agent service.


Step 5: File Formation Documents

For LLC

  • File Articles of Organization

For Corporation

  • File Articles of Incorporation

These are filed with the Secretary of State.

Information required:

  • Business name
  • Registered agent details
  • Business address
  • Ownership details

Step 6: Obtain EIN (Employer Identification Number)

An EIN is like a business tax ID.

Why EIN is Important

  • Open US bank account
  • File taxes
  • Hire employees
  • Process payments

Foreign founders can apply for EIN without SSN via IRS Form SS-4.


Step 7: Open a US Business Bank Account

A US bank account is essential for operations.

Options Available

  • Traditional banks (Chase, Bank of America)
  • Online banks (Mercury, Wise, Relay)

Some banks require:

  • EIN
  • Formation documents
  • Passport (for foreigners)

Step 8: Register for Taxes

Depending on your business:

  • Federal taxes (IRS)
  • State income tax
  • Sales tax (if applicable)
  • Payroll taxes (if employees)

Common Taxes in the US

  • Federal Income Tax
  • State Income Tax
  • Sales Tax
  • Franchise Tax

Step 9: Obtain Licenses and Permits

Depending on industry and location, you may need:

  • Business license
  • Professional license
  • Local permits
  • Industry-specific approvals

Step 10: Ongoing Compliance Requirements

After registration, compliance is crucial.

Key Ongoing Requirements

  • Annual reports
  • Franchise tax payment
  • Accounting and bookkeeping
  • Tax filings
  • BOI (Beneficial Ownership Information) reporting (FinCEN)

Cost of Registering a Business in the USA

ItemEstimated Cost
State filing fees$50 – $300
Registered agent$50 – $150/year
EINFree
Bank accountMostly free
Annual compliance$100 – $500

How Long Does US Business Registration Take?

  • LLC or Corporation filing: 1–7 days
  • EIN: Immediate to 7 days
  • Bank account: 1–14 days

Total timeline: 1–3 weeks


Common Mistakes to Avoid

  • Choosing wrong business structure
  • Ignoring tax obligations
  • Not maintaining compliance
  • Using incorrect registered agent
  • Mixing personal and business finances

Can Foreigners Register a Business in the US?

Yes, absolutely.

Foreigners can:

  • Own 100% of a US company
  • Register LLC or C-Corp
  • Open US bank accounts
  • Operate globally

Visa is not required for ownership (only for working physically in the US).


Best Practices for Long-Term Success

  • Choose the right state
  • Maintain proper accounting
  • File taxes on time
  • Protect intellectual property
  • Scale with compliance in mind

10 Best Business Registration Services (USA) — Quick Comparison & Reviews

Short summary (at-a-glance):
If you want the fastest route to form an LLC or corporation without handling state paperwork alone, these ten services consistently top the lists for reliability, features and value: LegalZoom, IncFile, ZenBusiness, Northwest Registered Agent, Rocket Lawyer, MyCompanyWorks, Swyft Filings, Harbor Compliance, LegalNature, and Stripe Atlas. Below you’ll find a short profile, pros/cons, who should pick each, and critical comparative notes (pricing, speed, registered-agent options, and extras).


1) LegalZoom — Best known, broad legal tools & brand trust

What it is: One of the oldest, most widely-known online legal & business-formation providers with a full range of services (LLC, corp, DBA, registered agent, ongoing compliance and legal plan subscriptions).
Why people use it: Brand recognition, broad product line (legal forms, trademark help, attorney access), and in-house legal plans.
Pros

  • Trusted brand; lots of educational resources.
  • Wide set of add-on legal & business services.
  • Supports complex legal needs beyond formation. Cons
  • Pricier than many competitors for comparable packages.
  • Extra fees for common add-ons (EIN, compliance reminders) unless you pick a higher tier. Best for: Businesses that expect to need ongoing legal services or want a single provider for formation + legal help.

2) IncFile — Best value for low-cost/first-time founders

What it is: Low-cost formation provider famous for a free basic package (you still pay state fee). Offers registered agent free for the first year.
Why people use it: Very low startup cost; friendly for bootstrapped founders.
Pros

  • Free formation package (you pay state fees).
  • First-year registered agent included.
  • Simple dashboard & straightforward process. Cons
  • Upsells for things like operating agreements and compliance tools.
  • Customer support quality can vary. Best for: First-time entrepreneurs and solo founders on a tight budget.

3) ZenBusiness — Best for simplicity + strong value package

What it is: Popular formation company focused on modern UX and value pricing; includes operating agreement templates and compliance features in mid-tier plans.
Why people use it: Clean UX, good automation for compliance, strong mid-tier plan features.
Pros

  • Affordable plans with meaningful inclusions (operating agreement, annual report service).
  • Good customer support and onboarding.
  • Add-ons are reasonably priced. Cons
  • Cheapest plan is very basic — some features reserved for higher tiers. Best for: Small businesses who want automated compliance help and an easy setup.

4) Northwest Registered Agent — Best for privacy & premium support

What it is: Boutique formation and registered-agent firm that emphasizes privacy, personal customer support, and a “no upsell” approach.
Why people use it: Excellent privacy practices, real-person support, and strong registered-agent service.
Pros

  • High-quality, personalized customer support.
  • Strong privacy and compliance focus.
  • Zero aggressive upsells; clear pricing. Cons
  • Higher price than budget competitors.
  • Fewer bundled extras (you pay for what you need). Best for: Entrepreneurs who value privacy, accuracy, and high-touch service.

5) Rocket Lawyer — Best if you want legal subscription + docs

What it is: Legal document platform with formation services bundled into a legal plan (document library and attorney consultations).
Why people use it: The subscription model gives ongoing legal documents & attorney access. Good for founders needing on-demand legal templates and advice.
Pros

  • Subscription includes access to many legal forms and attorney Q&A.
  • Formation can be bundled into an ongoing plan. Cons
  • Pricing model favors subscribers — pay more if you want single-use formation without subscription. Best for: Businesses that expect to need regular legal documents and occasional attorney guidance.

6) MyCompanyWorks — Best for fast & reliable formations

What it is: Formation specialist known for streamlined service, predictable pricing and fast turnaround.
Why people use it: Clear pricing, speed, and good customer service.
Pros

  • Fast formation times.
  • Helpful onboarding and straightforward dashboard.
  • Good for repeat business owners who form many entities. Cons
  • Not as feature-rich as some larger platforms (fewer legal extras). Best for: Business owners who want fast formations and straightforward compliance tools.

7) Swyft Filings — Best for speed + simple packages

What it is: An incorporation service focusing on quick turnaround and affordable packages with multiple service levels.
Why people use it: Quick filing and multiple tier options to match needs.
Pros

  • Speedy filings; multiple pricing tiers.
  • Easy-to-understand packages. Cons
  • Upsells for registered agent and compliance features.
  • Support and dashboard less refined than top competitors. Best for: Founders who prioritize speed and a no-frills formation.

8) Harbor Compliance — Best for complex compliance & enterprise needs

What it is: Compliance-first provider for organizations with more sophisticated needs: multi-state compliance, nonprofits, trusts, and public entities.
Why people use it: Deep compliance expertise and hands-on service for complicated regulatory environments.
Pros

  • Excellent for multi-state or regulated industries.
  • High-touch service and account management. Cons
  • Premium pricing (built for complex or enterprise-level needs).
  • Not necessary for basic single-state LLCs. Best for: Companies with heavy compliance needs or corporate/legal departments.

9) LegalNature — Best for DIY forms + formation docs

What it is: Legal document platform that includes formation documents and simple filing help. A good fit for DIY founders who want legal forms and guidance.
Why people use it: Document templates and a simple route to formation without heavy ongoing subscription costs.
Pros

  • Large template library for contracts and business documents.
  • Good for DIY legal tasks combined with occasional formation assistance. Cons
  • Not a full-service formation + registered agent provider in some cases. Best for: Founders comfortable handling some filings themselves but wanting good legal documents.

10) Stripe Atlas — Best for startups needing banking + global tools (incl. founders)

What it is: A package from Stripe aimed at startups: incorporation (typically Delaware C-Corp), tax & legal templates, Stripe account access, and banking introductions.
Why people use it: Excellent if you plan to raise venture financing, need a Delaware C-Corp, and want integrated payments and bank onboarding.
Pros

  • Great for startups planning VC funding and global scaling.
  • Smooth Stripe payments integration and banking introductions. Cons
  • Typically forms Delaware C-orps (not best for every small business/LLC).
  • More tailored toward tech/startup use cases rather than local small businesses. Best for: Tech startups and founders anticipating raising venture capital or selling equity.

How these services compare — what to look for

1. Price vs. state fees

  • Formation services typically charge (a) your state filing fee (mandatory) + (b) a service fee for paperwork handling. Watch for “free” formation offers — the company’s fee may be zero, but state fees still apply and add-ons (EIN, operating agreements, registered agent) may be upsold.

2. Registered Agent

  • A registered agent receives official legal and tax notices for your business. Some providers include the first year for free (IncFile), others charge annually (Northwest, LegalZoom). If you value privacy and professional handling, prefer providers with dedicated registered-agent services.

3. Compliance & annual filings

  • Good providers help you stay compliant (annual reports, registered agent, reminders). ZenBusiness and Harbor Compliance are known for stronger compliance automation.

4. Speed

  • Filing speed depends mainly on the state; however, services with in-house expedited filing or support (MyCompanyWorks, Swyft Filings) can reduce processing time.

5. Extras: EIN, Operating Agreement, EIN filing, banking support

  • Typical add-ons: EIN application, custom operating agreements, business licenses search, and S-corp tax elections. Compare what’s included vs. add-on cost.

6. Customer support & privacy

  • Northwest Registered Agent emphasizes top-tier support and privacy. If you want white-glove service, pay for it.

Feature comparison table (high-level)

ServiceBest forRegistered AgentCompliance toolsEIN helpPrice tier highlights
LegalZoomLegal help + big brandYes (paid)GoodYes (paid)Premium pricing, many add-ons
IncFileBudget foundersFree 1st yearBasicFree/paidCheapest entry point
ZenBusinessBalance of price & compliancePaid/low costStrong automationPaidGreat mid-tier value
NorthwestPrivacy & supportExcellent (paid)GoodPaidPremium boutique service
Rocket LawyerOngoing legal docsYesDocs + attorney accessPaidSubscription model
MyCompanyWorksFast, reliable filingsPaidBasic + optionalPaidQuick turnarounds
Swyft FilingsSpeed-focusedPaidBasicPaidQuick, affordable tiers
Harbor ComplianceEnterprise & nonprofitsYesBest-in-classPaidPremium, enterprise focus
LegalNatureDIY docs + formationLimitedDocument-focusedPaidGreat for DIY legal docs
Stripe AtlasStartups & VC pathN/A (inc corp)Founder tools + bank introIncludedTailored for startups (Delaware C-Corp)

How to choose the right provider (short checklist)

  1. What entity? — If you need a Delaware C-Corp (startup/VC) choose Stripe Atlas or specialized lawyers. For LLCs, most providers are fine.
  2. Budget vs. time — IncFile or ZenBusiness for low budget; MyCompanyWorks or Swyft for speed.
  3. Ongoing compliance — If you want reminders + filings handled, favor ZenBusiness, Harbor Compliance, or Northwest.
  4. Legal support — If you want lawyer access and documents, LegalZoom or Rocket Lawyer.
  5. Privacy & service — Northwest Registered Agent for best-personalized support and privacy protections.

Practical tips & red flags

Do this before you pay:

  • Confirm the exact total cost (service fee + state fee) for your state and formation type.
  • Check whether registered agent is included or charged separately after the first year.
  • Confirm which documents you’ll receive (operating agreement, EIN filing, minutes, etc.).
  • Ask about refund policy and how they handle corrections or re-filing if the Secretary of State rejects the name or form.

Red flags:

  • Hidden recurring fees or auto-renewals for registered-agent service without clear notice.
  • Aggressive upselling after formation.
  • No clear customer support phone number or bad review patterns about missed filings.

Quick recommended picks by common needs

  • Lowest-cost formation: IncFile (free basic plan; you pay just state fees).
  • Best balance of price & compliance: ZenBusiness.
  • Best privacy & personal support: Northwest Registered Agent.
  • Best for legal-heavy needs: LegalZoom or Rocket Lawyer.
  • Best for VC-focused startups: Stripe Atlas.
  • Best for enterprise & regulated businesses: Harbor Compliance.

Make it yours, don’t rush

Forming your business is a pivotal step — getting the correct structure and compliance in place now saves time, money, and headaches later. Most of the top services above do the same paperwork, but they differ in support, compliance automation, scope of legal services, pricing transparency, and user experience. Choose the one aligned to your priorities: price, speed, legal support, or privacy.

Final Thoughts: Registering a Business in the USA

Registering a business in the United States opens doors to global credibility, scalability, and growth. When done correctly, it provides a strong legal and financial foundation for entrepreneurs worldwide.

Whether you are a first-time founder or an experienced business owner, following this structured guide ensures your US business registration process is smooth, compliant, and future-ready.


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