How to Open a Business in the US: Step-by-Step Guide for 2025

Why Open a Business in the United States?

The United States remains the world's premier destination for entrepreneurs looking to establish and grow businesses. With the largest consumer market, access to diverse funding options, strong intellectual property protections, and a business-friendly legal system, opening a business in the US offers unparalleled opportunities for growth and success.

Whether you're a US resident taking your first steps into entrepreneurship or an international founder looking to access the American market, this comprehensive guide will walk you through everything you need to know about starting a business in the United States in 2025.

We'll cover essential steps from business structure selection to registration requirements, with special attention to modern solutions like Stripe Atlas that have revolutionized the US business formation process for entrepreneurs worldwide.

Step 1: Choose the Right Business Structure for Your US Company

Before you can open a business in the United States, you need to determine which legal structure best fits your needs.

Popular US Business Structures Compared

Business Structure	Liability Protection	Taxation	Formation Complexity	Best For
Sole Proprietorship	None	Pass-through on personal tax return	Very Low	Solo entrepreneurs with minimal risk
LLC (Limited Liability Company)	Strong	Flexible (default: pass-through)	Moderate	Small to medium businesses needing liability protection
C Corporation	Strong	Corporate tax + dividend tax	High	Tech startups seeking venture capital; international founders
S Corporation	Strong	Pass-through with potential SE tax savings	High	Profitable small businesses with US citizen owners

Limited Liability Company (LLC)

Key Benefits:

Protects personal assets from business liabilities
Flexible management structure
Pass-through taxation by default
Fewer formalities than corporations
Available to non-US citizens

Formation Requirements:

Articles of Organization filed with state
Operating Agreement
EIN (Employer Identification Number) from IRS
Registered agent in formation state

C Corporation

Key Benefits:

Complete liability protection
Unlimited growth potential through stock issuance
Attractive to investors, especially venture capital
Preferred structure for eventual IPOs
Clear path for international entrepreneurs

Formation Requirements:

Articles of Incorporation filed with state
Corporate Bylaws
Initial Board of Directors meeting
Stock issuance documentation
EIN from IRS
Registered agent in formation state

Which Structure is Right for Your US Business?

Choose an LLC if: You want simplicity with liability protection, aren't seeking venture capital, and prefer pass-through taxation
Choose a C Corporation if: You plan to raise significant investment, might go public eventually, or are an international founder wanting the most recognized US structure

Pro Tip for International Founders: Most foreign entrepreneurs choose either Delaware C Corporations (for tech startups seeking investment) or Wyoming/Delaware LLCs (for digital businesses, e-commerce, or consulting services) when opening a business in the US.

Step 2: Select the Optimal State for Your US Business Registration

Unlike many countries, the United States allows you to form your business in any state, regardless of where you'll actually operate.

Top States for Business Formation in 2025

Delaware

Why register: Premier business court system (Court of Chancery); well-established corporate law; privacy protections; no state corporate income tax for companies not operating in Delaware
Best for: Startups planning to raise venture capital; larger businesses with complex structures
Cost range: $90-300 annual franchise tax for LLCs; corporations based on shares

Wyoming

Why register: No state income tax; low annual fees ($60 for LLC annual report); strong privacy protections; no minimum tax
Best for: Single-member LLCs; online businesses valuing privacy; international entrepreneurs
Cost range: ~$100-150 initial filing + $60 annual report

Nevada

Why register: No state income tax; no franchise tax; strong liability protections
Best for: Businesses with significant liability concerns
Cost range: Higher fees than Wyoming (~$425 initial filing + ~$350 annual fees)

Your Home State

Why register: Simplified compliance; no need for foreign qualification
Best for: Businesses with physical presence in one state; local service businesses
Cost range: Varies significantly by state

Factors to Consider When Choosing a State

Physical location of your business operations
Tax implications in various states
Filing and maintenance costs
Privacy requirements
Industry-specific regulations
Long-term business goals

Important Note: If you form in one state but operate in another, you'll need to "foreign qualify" your business in your operating state, potentially doubling your compliance requirements and costs.

Step 3: Register Your Business Name and Secure Your Brand

Before officially opening your business in the US, you need to secure your business name and consider trademark protection.

Business Name Registration Process

Conduct name availability search in your formation state's business registry
Check trademark database through USPTO (United States Patent and Trademark Office)
Verify domain name availability for your online presence
Search social media platforms for username availability

DBA (Doing Business As) Registration

If you plan to operate under a name different from your legal business name:

File a DBA (also called fictitious name, assumed name, or trade name) in your operating jurisdiction
Publication requirements exist in some states
Renewal typically required every 3-5 years

Trademark Considerations

Federal trademark registration provides nationwide protection
Application process through USPTO
Costs approximately $250-350 per class of goods/services
International protection available through Madrid Protocol

Expert Tip: Secure your business name across all platforms before announcing your company publicly. For maximum protection, consider filing a trademark application as early as possible in the business formation process.

Step 4: Obtain an EIN and Set Up Tax Accounts

Every US business needs proper tax identification and registrations.

Obtaining an EIN (Employer Identification Number)

An EIN is the business equivalent of a Social Security Number and is required for:

Opening business bank accounts
Hiring employees
Filing business taxes
Establishing business credit

For US founders:

Apply online through IRS website (free, immediate issuance)
Complete Form SS-4

For international founders without SSN:

Apply by mail or fax using Form SS-4
Use third-party services like Stripe Atlas for assistance
Typical processing time: 4-6 weeks

State Tax Registrations

Depending on your business activities, you may need to register for:

State income tax
Sales and use tax
Employer withholding tax
Unemployment insurance
Workers' compensation

Compliance Alert: Tax registration requirements vary significantly by state and business activity. Research your specific obligations or work with a formation service that handles these registrations.

Step 5: Open a US Business Bank Account

A dedicated business bank account is essential for proper financial management and maintaining your liability protection.

Traditional Banking Options

National Banks (Chase, Bank of America, Wells Fargo):

Extensive branch networks
Comprehensive business services
Often require physical presence to open account
May have higher fees and balance requirements

Regional and Community Banks:

More flexible requirements
Personalized service
Potentially lower fees
Limited geographic reach

Digital Banking Solutions for US Businesses

Mercury:

Designed for startups and tech companies
No minimum balances or monthly fees
Integrated with common business tools
Available to international founders (with EIN and US entity)

Brex:

Banking alternative with built-in expense management
No personal guarantee required
Rewards program tailored to business spending
Available to foreign-owned US entities

Wise Business (formerly TransferWise):

Multi-currency accounts
Excellent for international operations
Lower foreign exchange fees
Works well alongside primary US bank account

Documentation Required to Open US Business Bank Account

EIN (Employer Identification Number)
Articles of Organization/Incorporation
Operating Agreement/Bylaws
Two forms of personal ID for all significant owners
Proof of address (business and personal)
Initial deposit (varies by bank)

For International Founders: Some banks may require a US visa, physical presence in the US, or an ITIN (Individual Taxpayer Identification Number). Services like Stripe Atlas often include banking partnerships that facilitate account opening for foreign entrepreneurs.

Step 6: Fulfill Business License and Permit Requirements

Almost all businesses in the US require some form of licensing or permits at the federal, state, or local level.

Common Business License Types

Federal Licenses and Permits:

Required for specific regulated industries (alcohol, aviation, firearms, etc.)
Obtained through appropriate federal agencies

State Business Licenses:

General business licenses (required in most states)
Professional and occupational licenses
Environmental permits
Seller's permits for collecting sales tax

Local Permits:

Business operation licenses
Zoning and land use permits
Building permits
Health and safety permits
Signage permits

Industry-Specific Requirements

Industry	Common License Requirements
Food Service	Health department permits, food handler permits, liquor licenses
Retail	Seller's permit, resale certificate, store license
Professional Services	Occupational licenses, professional certification
Construction	Contractor's license, specialty trade licenses, building permits
E-commerce	Seller's permits, home occupation permits

Compliance Strategy: Create a comprehensive checklist of all required licenses and permits for your specific business type and location. Many entrepreneurs use legal services or formation platforms to identify all necessary licensing requirements.

Step 7: Understand US Business Taxes and Compliance

The US tax system is complex, with obligations at federal, state, and sometimes local levels.

Federal Tax Obligations

Income Tax Filing Requirements:

Sole Proprietorship: Schedule C with personal tax return
Partnership/LLC: Form 1065 + Schedule K-1 for each member
C Corporation: Form 1120
S Corporation: Form 1120-S + Schedule K-1 for each shareholder

Employment Taxes (if you have employees):

Social Security and Medicare (FICA)
Federal unemployment (FUTA)
Income tax withholding
Filed quarterly with Form 941

Self-Employment Taxes:

15.3% on net business income (covers Social Security and Medicare)
Applies to sole proprietors and LLC members

State and Local Taxes

Common State Tax Obligations:

State income tax (in most states)
Sales and use tax
Franchise tax or annual report fees
Unemployment insurance tax

Local Tax Considerations:

City/county business taxes
Local income taxes
Property taxes
Special assessment districts

Tax Deadlines to Remember

Annual tax returns: Generally April 15th for individuals; 15th day of 3rd or 4th month after year-end for businesses
Estimated tax payments: Quarterly (April 15, June 15, September 15, January 15)
Sales tax remittance: Monthly, quarterly, or annually depending on volume and jurisdiction
Employment tax deposits: Monthly or semi-weekly depending on size
Annual reports: Vary by state, typically due on formation anniversary

Tax Planning Tip: Work with a US-based accountant familiar with your business structure and industry. The cost of professional tax preparation is generally far less than potential penalties for non-compliance or missed tax-saving opportunities.

Step 8: Streamline the Process with Stripe Atlas

While traditional business formation methods involve multiple steps across various agencies, modern services like Stripe Atlas have revolutionized the process of opening a business in the United States.

What is Stripe Atlas?

Stripe Atlas is a comprehensive business formation and setup service that helps entrepreneurs from anywhere in the world establish a legitimate US business entity quickly and efficiently.

What Stripe Atlas Provides

Complete Formation Package:

Delaware C Corporation or LLC formation
Standard incorporation documents
EIN (tax ID) application with the IRS
Stock issuance (for corporations)
Basic post-formation legal documents

Banking and Payments:

Stripe payments account setup
Introduction to Mercury or other partner banks
Help with US business bank account opening

Additional Benefits:

Up to $5,000 in AWS credits
Discounts on legal and accounting services
Access to Stripe Atlas community and resources
Tax interview preparation
Templates for founder agreements

Stripe Atlas Costs and Timeline

Standard pricing: $500 flat fee (as of 2025)
Additional costs: State filing fees (~$90 for Delaware LLC, ~$150 for Delaware C Corp)
Annual costs: Delaware franchise tax and registered agent fees (not included in initial fee)
Timeline: Typically 2-3 weeks for complete formation and EIN issuance

Who Should Use Stripe Atlas?

Ideal for:

Tech startups and online businesses
International founders without US presence
First-time entrepreneurs seeking simplicity
Businesses planning to raise venture capital (C Corporation)
Service-based businesses expanding to the US market

Limitations:

Currently only offers Delaware formations
Not ideal for businesses requiring specialized structures
Limited customization of legal documents
Not suitable for businesses with complex regulatory requirements

Alternatives to Stripe Atlas:

Clerky: Popular with startups and tech companies, focused on Delaware C Corporations
Firstbase: Offers LLC and corporation formation with broader state options
Gust Launch: Tailored for startups with funding aspirations
LegalZoom and Incfile: Budget options with less specialized support

Step 9: Establish Your US Business Presence

After formal registration, you'll need to establish your operational presence in the United States.

Physical Business Location Options

Commercial Office Space:

Traditional lease (typically 3-5 year commitment)
Executive suites (flexible terms, shared amenities)
Coworking spaces (minimal commitment, community benefits)

Virtual Office Solutions:

Business address with mail handling
Meeting room access as needed
Phone answering services
Compliance with physical address requirements

Home-Based Business:

Check zoning regulations and HOA restrictions
Consider business insurance implications
Understand tax deduction opportunities and limitations

Virtual Presence Requirements

Professional Website:

US-focused domain (.com preferred)
US contact information
Privacy policy compliant with US regulations
Terms of service appropriate for US customers

Local Phone Number:

Virtual phone systems with US numbers
Call forwarding to international numbers if needed
Professional voicemail and call handling

Payment Processing:

US-compatible payment methods
State sales tax collection capabilities
Compliance with US financial regulations

Hiring in the US

Employment Options:

Direct W-2 employees (full compliance with labor laws)
1099 independent contractors (careful classification required)
Professional Employer Organizations (PEOs)
Employer of Record (EOR) services

Key Compliance Areas:

Fair Labor Standards Act (FLSA)
Equal Employment Opportunity (EEO) regulations
State-specific employment laws
Workers' compensation insurance
Employee benefits requirements

Foreign Owner Considerations: Non-resident business owners typically need to appoint a US-based manager or use specialized services to handle day-to-day operations if not personally present in the country.

Step 10: Protect Your Business with Proper Insurance and Legal Documentation

Operating in the US comes with liability risks that proper insurance and legal documentation can mitigate.

Essential Business Insurance

General Liability Insurance:

Protects against third-party bodily injury and property damage claims
Typically the first policy most businesses obtain
Cost range: $500-1,500 annually for small businesses

Professional Liability/Errors & Omissions:

Covers professional mistakes, negligence, and inadequate work
Essential for service providers and consultants
Cost range: $1,000-3,000 annually depending on profession and revenue

Business Property Insurance:

Protects business equipment, inventory, and furnishings
Coverage for fire, theft, and certain natural disasters
Often bundled with general liability in a Business Owner's Policy (BOP)

Cyber Liability Insurance:

Protection against data breaches and cyber attacks
Increasingly important for any business with digital operations
Cost range: $500-5,000 based on data sensitivity and business size

Workers' Compensation:

Required in most states if you have employees
Covers work-related injuries and illnesses
Pricing based on payroll and industry risk classification

Essential Legal Documents

Required for websites collecting any user information
Must comply with state laws like CCPA (California) and general FTC guidelines
Should address data collection, usage, and protection practices

Establishes rules for using your product or service
Limits liability and sets expectations
Should include dispute resolution procedures

Client/Customer Contracts:

Clearly defined scope of work and deliverables
Payment terms and conditions
Intellectual property ownership provisions
Limitation of liability clauses

Employee Documentation:

Employment agreements
Non-disclosure agreements (NDAs)
Employee handbook with policies and procedures
Independent contractor agreements when applicable

Legal Compliance Tip: While templates are readily available online, investing in proper legal review of your essential documents can prevent costly disputes later. Many entrepreneurs use services like Stripe Atlas as a starting point but engage specialized attorneys for industry-specific requirements.

Step 11: Build Your US Business Credit Profile

Establishing business credit is essential for future financing and growth opportunities in the US market.

Business Credit Building Steps

1. Establish Your Business Foundation:

Complete formal business registration
Obtain EIN from the IRS
Open business bank account
Set up dedicated business phone line and address

2. Register with Business Credit Bureaus:

Dun & Bradstreet (apply for a D-U-N-S Number)
Experian Business
Equifax Business
Business Credit USA

3. Work with Suppliers That Report Payments:

Establish Net-30 accounts with office supply companies
Use business credit cards and pay on time
Request vendors to report your payment history

4. Monitor and Manage Your Business Credit:

Check reports regularly for accuracy
Dispute any errors promptly
Maintain a low credit utilization ratio
Pay all bills before due dates

Business Credit Cards for New US Businesses

Options for US Residents:

Chase Ink Business cards
American Express Business cards
Capital One Spark Business cards
Discover Business cards

Options for Non-US Founders:

Brex (no personal guarantee for corporations with funding)
SVB (Silicon Valley Bank) startup cards
Stripe Corporate Card (available through Stripe Atlas)
Secured business credit cards as a starting point

Credit Building Timeline: Expect 6-12 months of consistent activity before your business establishes a meaningful credit profile. Starting with secured cards or vendor accounts and progressively moving to traditional business financing options is the typical path.

Step 12: Leverage US Market Growth Opportunities

Once your US business is established, focus on growth strategies suited to the American market.

Digital Marketing for US Audience

Search Engine Optimization (SEO):

Focus on US-specific keywords and search trends
Ensure mobile optimization (critical for US market)
Create location-specific content if targeting particular regions
Build backlinks from US-based websites

Pay-Per-Click Advertising:

Google Ads with geo-targeting for US customers
Meta (Facebook/Instagram) ads with demographic precision
LinkedIn ads for B2B services and recruitment
Retargeting campaigns to capture interested prospects

Content Marketing Strategy:

Address US customer pain points and questions
Adapt tone and style to American preferences
Consider regional differences within the US market
Leverage American holidays and cultural moments

US-Specific Growth Channels

Marketplace Integration:

Amazon, eBay, Walmart for physical products
Upwork, Fiverr, Toptal for professional services
Industry-specific marketplaces
ServiceOrca.com for service-based businesses

Strategic Partnerships:

Channel partner programs
Affiliate marketing relationships
Co-marketing opportunities
Integration with complementary services

Funding and Investment:

Small Business Administration (SBA) loans
Angel investment networks
Venture capital (particularly accessible via Delaware C Corps)
Crowdfunding platforms (Kickstarter, Indiegogo, WeFunder)

Expansion Strategy Tip: Many international businesses use a phased approach to US market entry, starting with digital presence and expanding to physical operations as revenue justifies the investment. This approach minimizes risk while allowing for market testing and adaptation.

Step 13: Maintain Compliance and Prepare for Growth

Staying compliant with US regulations is essential for long-term business success and avoiding costly penalties.

Annual Compliance Requirements

State-Level Requirements:

Annual reports or statements of information
Franchise tax payments
Registered agent maintenance
Business license renewals

Federal Requirements:

Annual tax filings
Quarterly estimated tax payments
Employment tax reporting (if applicable)
Industry-specific regulatory filings

Operational Compliance:

Data privacy regulations
Consumer protection laws
Employment law updates
Industry-specific compliance

Scaling Your US Business Operations

Entity Adjustments:

Converting from LLC to Corporation as you grow
Adding subsidiaries for different business lines
Restructuring for tax efficiency
Preparing for investment rounds

Team Expansion:

Recruiting strategies for US talent
Remote work policies across time zones
Compensation structures for US employees
Benefits packages competitive in US market

Intellectual Property Protection:

Trademark registration for brand expansion
Patent applications for innovations
Copyright protection for creative works
Trade secret safeguarding policies

Exit Strategies in the US Market

Common Exit Options:

Acquisition by larger companies
Merger with complementary business
Initial Public Offering (IPO)
Management buyout
Transition to family members

Pre-Exit Preparations:

Clean financial records and reporting
Strong customer contracts and relationships
Protected intellectual property
Streamlined operations and documentation

Long-term Planning Tip: Even if exit is not your immediate goal, structuring your US business with potential exit options in mind creates more flexibility and value as your company matures.

Conclusion: Your Roadmap to US Business Success

Opening a business in the United States offers tremendous opportunities but requires careful navigation of legal, tax, and operational considerations. By following this comprehensive guide, you can establish a strong foundation for your US business ventures.

Key Takeaways for US Business Formation

Choose the right structure and state based on your specific business goals and circumstances
Leverage modern formation services like Stripe Atlas to simplify the process, especially for international founders
Establish proper banking and payment processing to operate effectively in the US market
Ensure comprehensive compliance with federal, state, and local regulations
Build a strong legal foundation with proper contracts and business protection
Develop a US-specific marketing strategy to connect with American customers
Plan for growth and compliance from the beginning

Whether you're a US resident starting your first business or an international entrepreneur expanding to the American market, the United States continues to offer unparalleled opportunities for innovation, growth, and success. With proper planning and execution, your US business can thrive in the world's most dynamic economy.

Ready to launch your service business in the US market? After establishing your business entity, consider listing your services on serviceorca.com to connect with customers actively searching for what you offer. With serviceorca.com's service marketplace, you can quickly establish visibility in the US market and begin building your American customer base!

How to Open a Business in the US: Step-by-Step Guide for 2025 | Stripe Atlas