How to Setup and start business in the USA

Starting a dream company of yours? Looking for the countries to initiate? As per the majority, the US is cost effective and easy to go for. It’s the land of opportunities. There are even online service providers who are looking for ways to help you. However, taking expert advice is mandatory who can help you with a proper constitution. Even after incorporating one, they will help you in maintaining your company i.e, ┬átax planning, setting up a bank account, Accounting and bookkeeping, merchant processing and all other registration requirements.
Although it is easy to set up you require a lot of hard work to enter into a new country. However, the appetite in fulfilling such an endeavour usually comes from massive success.
To share a Good news
Both the resident and non-resident citizen of the USA can own and start a business in the US. But all you need is knowing how to initiate a business in the USA.
The million dollar questions which crop up your mind is how to look after the daily activities in a new country like the USA without having a physical building? Let’s then dive into the sea of setting a business.

Know the type of business

Before dwelling further, you need to decide the type of business. It is essential to understand the business types and select the one to fulfil your mission. As per the study, LLC is the best that works for US and non-US residents. It is the most commonly preferred business types in the US. Once you hold an upper hand on starting an LLC business, You can flair and receive benefits from it. These offer taxation benefits and safeguards your personal assets from debts and lawsuits.
There are also other types of corporations to choose from

  • C-Corporation: These are best suited for those who want to have shares and investors for their company.
  • S-corporation: To avoid double taxation go for a domestic corporation. Preferred mostly by residents of USA
  • Sole proprietorship: You are considered as a sole proprietor if you operate business activities without registering the firm

Deciding upon the state

The business formalities require you to determine the location. If there is a demand for your product in any specific state, it is better to incorporate there. There are no obligations to initiate business in any company. You can start a business either in California, Nevada or Delaware. Most professionals recommend incorporating in Delaware followed by Nevada.
While determining the place, you have to look into the business objectives in a more cost-effective way. A firm at the outset, need to identify the key factors while choosing a perfect location

  • Access to different markets
  • Availability of labour
  • Transport infrastructure

are the most key determinants. It is a combined mixture of all these and others.

Hire a registered agent

To receive important documents there should be a registered agent with a physical address. These agents receive all the business papers and legal documents on behalf of the company. The agency should be near to the company or the agent should live in the same state. It is mandatory to get an agent to ensure you not to miss any essential business documents related to state taxes or lawsuits. You might be wondering why to hire instead of doing it all by yourself. But there are reasons for this

  • As stated, for not missing any important documents or deadlines for the company
  • Some prefer to stay anonymous, in such cases, it is preferred.

There are even a few requirements

  • They should be physically located in your state of company formation
  • Should be physically present during business hours
  • Name and address need to attest to the state
  • The information will have to be public and searchable

Earn an EIN

To open a bank account, pay taxes and more often to get a business licence an EIN(Employee Identification Number) is necessary. You can obtain it from the IRS for free. You can always apply for one in simple 3 steps

  • Know your eligibility. The person applying for EIN need to have a valid SSN, and ITIN-Taxpayer identification.
  • Complete the application in one go. As there is no option to save and return later. Session expires only in 15 minutes.
  • Submit all your applications. After completing all your validations, you will receive your EIN immediately. You can save, download and print your EIN for all future confirmations.


After planning for the location and business type, then look for registering your industry by filling up the necessary documents. Forming a company and doing everything is a big headache Unless you have a lot of patience and time. To complete the whole process it takes 1week to 4 weeks of business working days. It always depends on the business entity and the secretary of the state.
Moreover, to initiate a business you need not submit any documents in the United States.

Acquire business insurance

To protect from the unexpected accidents, natural disasters and other lawsuits, it is better to cover with insurance. It ensures that your personal assets and your business assets are protected from all the unexpected catastrophes. In a few instances, you are required to purchase even certain types of business insurance.

  • General liability insurance
  • Product and professional liability insurance
  • Commercial Property insurance
  • Home-based business insurance
  • Business insurance policy

To make life easier, you can simplify this by applying through the online process. You can, in fact, follow below four steps to buy business insurance

  • Assess your potential risks
  • Search for a commercial and reputable licensed agent
  • Always shop around and compare prices, terms and benefits
  • Re-assess your needs every year. As the business expands, your liabilities also increases. You can then easily contact your insurance agent to replace any equipment which has been obsolete and discuss the options.



Starting a legitimate business in the united states is easy from anywhere from the world. As this is the era of globalization, you need not physically present over there in that country. In fact, it depends on the type of business. There are many service agents that don’t charge you for getting a basic startup in the US. There are many business owners that rely on these services which even maintain your company. In addition, if you want to visit the country and see all your requirements you can follow the above few and more steps.

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