Start a Business
in the USA
— The Right Way.

No — you can file an LLC yourself through your state's Secretary of State website. Services like ZenBusiness, Northwest Registered Agent, or Incfile can help for $0 + state fees. That said, having an attorney review your Operating Agreement (especially with multiple owners) is worth $200–$500 to prevent costly disputes later. For complex structures or fundraising, always use a business attorney.

An LLC is simpler and more flexible — it offers liability protection with pass-through taxation and minimal compliance. A corporation is more structured with shareholders, directors, and officers. A C-Corporation is the only structure that allows VC investment via preferred stock, and is the vehicle for IPOs. Most small businesses choose LLC; VC-funded startups must use Delaware C-Corp. An S-Corp isn't a formation type — it's a tax election you make with an existing LLC or corporation.

Yes. Non-US residents can form an LLC or C-Corp in the US without a visa. You'll need a US registered agent, and can get an EIN via IRS Form SS-4 by fax or mail (online EIN requires a US SSN). Delaware and Wyoming are most popular for foreign-owned US entities. Stripe Atlas is an excellent service designed specifically for global founders wanting a US company. You will have US tax filing obligations — consult a tax advisor familiar with non-resident business ownership.

State filing fees range from $35 (Montana) to $500+ (Massachusetts). Most states charge $50–$150. Additional costs: registered agent $0–$300/year, operating agreement $0 (DIY) to $500 (attorney-drafted), annual report $0–$400/year. Your EIN is always free from the IRS. Total DIY cost: approximately $100–$800 depending on state. Wyoming ($100 filing, $62 annual) and New Mexico ($50 filing, no annual report) are the most cost-effective states for LLC formation.

By default, a single-member LLC is taxed on Schedule C of your personal return. Multi-member LLCs file as a partnership (Form 1065). Owners pay federal income tax plus 15.3% self-employment tax on profits. Electing S-Corp taxation (via Form 2553) can save thousands by splitting income between salary and distributions. Additional state taxes vary: California has an $800/year minimum franchise tax, Texas has a gross receipts franchise tax. You must also pay quarterly estimated taxes to avoid IRS underpayment penalties.

It depends on your goals. Delaware is the right choice if: you're raising VC or institutional investment, you want the most investor-friendly corporate law, or you're building a holding structure. However, if you form in Delaware but operate in another state, you'll pay Delaware filing fees AND foreign qualification fees in your home state — essentially doubling costs. For most small local businesses, your home state is simpler and cheaper. Delaware's advantage is primarily for VC-funded startups and companies planning major fundraising or M&A.

A registered agent is legally required for every US business entity. They receive official legal and government documents (lawsuits, state notices, tax forms) on your behalf. They must have a physical street address in your state of formation and be available during business hours. You can be your own registered agent if you have a physical address in the state, but most owners use a professional service ($50–$300/year) for privacy (your address isn't public), reliability, and compliance alerts. Northwest Registered Agent and ZenBusiness are top-rated options.

Almost every business needs a general business license from their city or county ($25–$100/year). Beyond that, requirements depend on your industry: Food businesses need health permits and food handler certifications. Contractors need state contractor licenses. Financial advisors need FINRA/state licenses. Healthcare providers need state medical licenses. Childcare businesses need state childcare licenses. Use the SBA's license finder at sba.gov and your state's portal (see our state section above) to identify all specific requirements. Operating without required licenses can result in significant fines and forced closure.

Yes — absolutely. Commingling personal and business funds "pierces the corporate veil," meaning a court can hold you personally liable for business debts, completely defeating the purpose of your LLC. A separate account also makes accounting, taxes, and potential audits dramatically easier. Free options exist: Mercury, Relay, and Bluevine all offer zero-fee business checking accounts. Open one immediately after receiving your EIN and formation documents — before accepting any revenue or making any business purchases.

The Beneficial Ownership Information (BOI) report is a new federal requirement under the Corporate Transparency Act. Most LLCs and corporations must disclose their beneficial owners (anyone owning 25%+) to FinCEN. Filing is free at boiefiling.fincen.gov. Companies formed before January 1, 2024 had until January 1, 2025. Companies formed in 2024 had 90 days; companies formed in 2025+ have 30 days. Non-compliance penalties: up to $591/day in civil fines plus possible criminal charges. Note: court rulings have created some uncertainty — check fincen.gov for the current filing status and any exemption updates.

Single-member and multi-member LLC owners typically take "owner's draws" — simply transferring money from the business account to personal account. No withholding required, but you'll owe quarterly estimated taxes on profits. If you've elected S-Corp status, you must pay yourself a "reasonable salary" through payroll first, then take additional distributions. Never just informally take money without documentation — every transfer should be recorded as a draw, distribution, or documented loan repayment. Once profitable, consult a CPA about the optimal owner compensation strategy.

Missing your state's annual report deadline is one of the most common and damaging compliance mistakes. Consequences escalate: first you'll receive late fees ($25–$500+), then your entity loses "good standing" status (which blocks you from opening accounts or signing certain contracts), and ultimately your state will administratively dissolve your entity. Once dissolved, you retroactively lose liability protection and must pay reinstatement fees to restore the entity. Set recurring calendar reminders for your state's specific due date. Your registered agent should also send automated reminders — one more reason to use a professional service.