Ding Babb｜Step-by-Step Guideline to Start a Business in the U.S.

1100 words, about 2.5 minute to read.

Keywords: LLC, C Corporation

Starting a business in the United States is an exciting journey — and the good news is that the formation process is nearly identical for both U.S. citizens and non-citizens. Business formation is handled at the state level, and with the right preparation, you can launch your company smoothly and legally.

Below is a step-by-step guideline to show you how to start a new business.

🌍Choose Your Business Structure🌍

Your first step is selecting the right business structure, which determines your liability, tax treatment, and management flexibility. LLCs and C Corporations are the most common options for immigrant entrepreneurs.

🌍Select a State for Formation🌍

You don’t have to register your business in the same state you live in. Many entrepreneurs choose Delaware, Wyoming, or Nevada for their favorable business laws, privacy protections, and tax advantages.

If your business has a physical office in a specific state, it’s often best to register there to avoid “foreign qualification” fees and paperwork.

🌍Pick a Business Name🌍

Your business name must be unique within your formation state. You can check availability through your state’s Secretary of State website. Example: Search “Business Name Availability + [Your State]” to find the official lookup page.

🌍Appoint a Registered Agent🌍

All LLCs and Corporations must have a Registered Agent with a physical address (not a P.O. Box) in the formation state. This person or company receives official legal and tax correspondence on behalf of your business.

🌍File Formation Documents🌍

This is your official step to bring your business to life. These documents are filed with your Secretary of State’s office and officially register your business.

• For LLCs: File Articles of Organization (or Certificate of Formation).

• For Corporations: File Articles of Incorporation.

🌍Create Internal Governance Documents🌍

Even if not legally required, these documents are highly recommended to protect your business structure. They outline how your business is managed, ownership percentages, decision-making rules, and profit distribution.

• For LLCs: Operating Agreement

• For Corporations: Bylaws

🌍Apply for Employer Identification Number (EIN)🌍

An EIN is your business’s federal tax ID, it’s like a Social Security Number for your company. You’ll need it to open a U.S. bank account, hire employees and file taxes. 

Immigrants without an SSN can still obtain an EIN by submitting IRS Form SS-4 via fax, mail, or phone.

🌍Open a U.S. Business Bank Account🌍

A dedicated business account helps separate personal and company finances, it’s a crucial step to preserve your limited liability protection. You’ll generally need your formation documents and EIN to open the account.

🌍Obtain Licenses and Permits🌍

Depending on your business type and location, you may need federal, state, or local permits to operate legally.

Example: Restaurants need health permits; import/export businesses may need federal trade licenses.

🌍Stay Compliant and Up-to-Date🌍

Running a business also means ongoing responsibilities. Such as file annual reports, pay state and federal taxes and maintain accurate financial records.

Regular compliance ensures your business remains in good standing and avoids costly penalties.