How to Start a US Company as a Non-Resident: Why C Corporation Is the Smarter Choice in 2025

Published On: July 23rd, 2025By Categories: us company registration
usa company formation

Starting a US company as a non-resident opens the door to the world’s most powerful economy. Whether you’re launching a tech startup,an e-commerce brand, or a service business, the United States offers global entrepreneurs unmatched legal protection, financial infrastructure, and market access.

In this article,we’ll guide you step by step on how to register a US company as a non-resident, and explain why forming a C Corporation is often a better choice than an LLC for foreigners – especially if you do not have an ITIN (Individual Taxpayer Identification Number).

Can a Non-Resident Start a Business in the US?

Yes. US laws allow foreign individuals to start a company in the US, even without being a citizen or green card holder.You don’t need a US visa or even a physical presence in the United States to register your business. Non-residents can own 100% of a US C Corporation or LLC,operate the company remotely, and legally conduct business with American clients or platforms like Amazon and Stripe.

Step-by-Step: How to Register a US Company as a Non-Resident?

1. Choose the Right Business Structure: LLC vs. C Corporation- Non-residents typically choose between: LLC (Limited Liability Company) ; C Corporation (C Corp)

Although many guides recommend forming a US LLC for its flexibility and pass-through taxation,this is not always ideal for non-residents.Here’s why:

LLCs are pass-through entities.The IRS taxes profits directly to members (owners),who are required to file Form 1040-NR and obtain an ITIN (Individual Taxpayer Identification Number).

Most non-residents do not have an ITIN, and applying for one can take several months and requires submitting identity documents to the IRS.Without an ITIN, you cannot fulfill your federal tax filing obligations as an LLC owner.

By contrast, a C Corporation files and pays corporate taxes at the entity level,and shareholders (especially those who don’t reside in the US ) are not automatically required to file a personal US tax return,unless dividends or wages are paid to them.For most non-US residents, forming a US C Corporation is the simpler and more compliant structure.

2. Choose a State to Incorporate In- The best US states for non-residents to register a US company are:

Delaware: Internationally respected corporate law, no minimum capital, fast processing.
Wyoming: No state income tax, low maintenance costs, strong privacy.
Florida & Texas: Suitable if you plan to have US -based operations or a physical office.
Note: You don’t have to choose the state where you live or work – you can form a US company in any state.

3. Appoint a Registered Agent

All states require that your US company appoint a Registered Agent with a physical address in that state. This agent receives official mail and compliance notices. Most formation companies include registered agent service in their packages.

4. File Incorporation Documents,To officially start a US company, you’ll need to file:
Articles of Incorporation (for a C Corp) Or Articles of Organization (for an LLC)

These documents are submitted to the Secretary of State in your chosen state.Once approved, your company is legally active and will receive a Certificate of Incorporation.

5. Apply for an EIN (Employer Identification Number)Every US business needs an EIN (also called a Tax ID Number) from the IRS to:

Open a US business bank account,File taxes,Hire employees,Work with payment processors

Foreign owners can get an EIN without a Social Security Number (SSN). You may need to submit Form SS-4 manually, or work with an agent to apply on your behalf.

Pro Tip: C Corporations can obtain an EIN without requiring shareholders to provide ITINs.

6. Open a US Business Bank Account

A US business bank account is essential for managing your company’s finances. Many banks require in-person visits, but some fintech solutions and remote banking partners allow non-residents to open business accounts online – especially if your company is incorporated and has an EIN.You’ll typically need:

Certificate of Incorporation – EIN confirmation letter-US business address (can be virtual)- Passport or national ID

7. US Tax & Compliance Considerations- US tax compliance for foreign-owned businesses can be complex. Here’s the breakdown:

For LLCs (owned by non-residents):You must file Form 5472 + pro forma 1120;You must obtain an ITIN;You may be subject to effectively connected income (ECI) rules;Failure to file can lead to $25,000+ penalties

For C Corporations:File Form 1120 (corporate tax return)- 21% flat federal corporate tax rate (as of 2025)- Shareholders only report US income if dividends or wages are paid,No ITIN required unless you receive personal income from the company.In short: Non-residents without ITINs will find C Corporations far easier and lower-risk to manage.

8. Maintain Your Company- To keep your US company in good standing, you must File annual reports with the state & Maintain a registered agent & Submit yearly tax filings (federal and possibly state);Pay franchise tax or annual fees (varies by state)

Most non-residents choose to hire a professional firm to handle these renewals and ensure compliance.Why Start a US Company as a Non-Resident?

1,Gain trust with American clients and investors
2,Access to Stripe, PayPal, Amazon, US payment gateways
3,Legally invoice and contract in US dollars
4,Build brand credibility with a US address and phone number
5,Benefit from strong legal protections and corporate infrastructure

Start Your US Business the Right Way

Forming a US company as a non-resident in 2025 is not only legal – it’s often the smartest move for scaling globally. However,choosing the right business structure is critical.Unless you already have an ITIN and want to handle complex filings,an LLC may create unnecessary hurdles.

Ready to start your U.S. company as a non-resident?Don’t navigate the process alone – contact our expert team today to help you register your U.S. company quickly, legally, and hassle-free.We specialize in helping non-residents form US corporations,obtain EINs,and stay compliant with annual reports and tax filings.Whether you’re an entrepreneur,investor,or e-commerce seller, we’ll guide you every step of the way.

+8618038173631

hi@easytaxs.com

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