United States
21% federal (+ state)
Corporate Tax
1–5 business days
Setup Time
No minimum (most states)
Min. Capital
100%
Foreign Ownership
#6
Ease of Business
The US is the world's largest market and the default destination for startups seeking venture capital. For VC-backed companies, a Delaware C-Corp is the standard — investors expect it. For small businesses, freelancers, and foreign entrepreneurs, a Wyoming or Delaware LLC offers the simplest path: no minimum capital, pass-through taxation, and no US residency requirement. The key challenge for non-residents is banking — most banks require an in-person visit, though fintech alternatives like Mercury are changing this. There is no entrepreneur visa, so most foreign founders operate remotely.
- Startups seeking US venture capital (Delaware C-Corp)
- Foreign entrepreneurs wanting a US business presence (Wyoming LLC)
- Freelancers and consultants serving US clients
- E-commerce businesses selling to US consumers
- SaaS companies wanting US payment processing and credibility
- Real estate investors structuring US property holdings
State choice matters enormously. Delaware is the default for funded startups but costs more in franchise tax. Wyoming is cheaper and more private but less recognized by VCs. California charges an $800 minimum franchise tax even if you earn nothing. Always check state-level obligations — the US is really 50 different jurisdictions, not one.
At a Glance
Available Business Structures
Limited Liability Company (LLC)
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C Corporation (C-Corp)
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S Corporation (S-Corp)
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Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–4 weeks
US business banking is straightforward for US residents but challenging for non-residents. Most major banks (Chase, Bank of America, Wells Fargo) require an in-person visit to a US branch. Mercury and Relay offer online applications for LLCs and C-Corps. Non-resident EIN applications may take 4–8 weeks by fax. Banking is the #1 bottleneck for foreign founders.
Visa & Immigration
The US has no dedicated entrepreneur visa. Common paths: E-2 Treaty Investor Visa (requires $100K+ investment + treaty country citizenship), L-1 Intracompany Transfer (requires existing foreign company), O-1 Extraordinary Ability, EB-5 Immigrant Investor ($800K–$1.05M investment for green card). Many founders operate US companies remotely without a visa — the company does not require the owner to be in the US.
Common Mistakes
Forming an LLC when planning to raise VC funding
Fix: VCs invest in C-Corps, not LLCs. If fundraising is your plan, incorporate as a Delaware C-Corp from day one. Converting later is expensive and creates tax complications.
Choosing California as the formation state without understanding the $800 minimum franchise tax
Fix: California charges $800/year even if your LLC earns $0. Form in Wyoming or Delaware instead, and only register as a foreign entity in California if you have physical presence or employees there.
Assuming a US LLC means you owe US taxes
Fix: A single-member LLC owned by a non-resident with no US-sourced income is generally not subject to US income tax. But you must still file informational returns. Consult a cross-border tax advisor.
Trying to open a bank account remotely without preparation
Fix: Most US banks require in-person visits. Plan a US trip for banking, or use Mercury/Relay which accept remote applications. Have your EIN, formation docs, and operating agreement ready before applying.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.