Starting a U.S. company can open incredible opportunities. The United States is one of the easiest countries in the world for entrepreneurs to do business in, with strong legal protection, access to U.S. clients, and credibility in the global market.
However, if you are a non-resident founder, two parts of the process can seem challenging: forming your company and opening a U.S. business bank account.
This guide walks you through both. We will explain the steps, what documents you need, which entities to consider, and how to handle taxes once your business is set up.
1. Why Form a U.S. Company?
Many international entrepreneurs register a company in the United States because it helps them:
- Serve American clients more easily
- Accept payments from U.S. platforms such as Stripe, PayPal, or Shopify
- Build trust with U.S. partners and investors
- Protect their personal assets through limited liability
- Access U.S. tax benefits and treaties (depending on the structure)
In short, forming a U.S. entity can help you appear professional, attract opportunities, and manage international income efficiently.
2. Choosing the Right Business Structure
Before you form your company, it is essential to understand the main entity types and how they are taxed.
Single-Member LLC (SMLLC)
This is the simplest structure for most foreign founders. It has one owner and is “disregarded” for U.S. tax purposes, meaning it does not pay taxes directly. Instead, profits are reported through IRS Form 5472 and a pro forma 1120 each year.
SMLLCs are ideal for small businesses, freelancers, consultants, or e-commerce store owners who want full control and minimal complexity.
Multi-Member LLC (MMLLC)
If your company has two or more owners, it becomes a multi-member LLC and is treated as a partnership by default. It must file Form 1065 annually and provide each member with a Schedule K-1 to report their share of the profits.
MMLLCs are great for small teams or partnerships that need flexibility in ownership and profit distribution.
C Corporation
Corporations are separate tax-paying entities. This structure is commonly used by startups planning to raise venture capital or issue shares. A C Corporation files Form 1120 and pays corporate income tax on its profits.
While it involves more compliance, it can be beneficial for growth-focused businesses that plan to reinvest profits or bring in outside investors.
3. Where to Form Your Company
The three most popular states for company formation are Wyoming, Delaware, and Texas.
Each has unique advantages:
- Wyoming: No state income tax, strong privacy laws, and low annual fees.
- Delaware: Well-known for corporate law and credibility with investors.
- Texas: No state income tax for individuals, but does have a franchise tax based on revenue.
If you are forming a company as a foreign entrepreneur, Wyoming and Delaware are usually the most convenient choices because they allow online registration and provide strong asset protection.
4. Step-by-Step: How to Form a U.S. Company
Here is the general process for setting up your company:
Step 1: Choose a state and business name
Your company name must be unique in the state where you form it. You can check availability through the state’s Secretary of State website.
Step 2: Appoint a registered agent
Every U.S. company needs a registered agent with a physical address in the state of formation. This agent receives legal and tax correspondence on behalf of your company.
If you are outside the U.S., you can hire a professional registered agent service for an annual fee.
Step 3: File your formation documents
You must submit Articles of Organization (for LLCs) or Articles of Incorporation (for corporations) to the Secretary of State. Once approved, your company is officially formed.
Step 4: Obtain an EIN (Employer Identification Number)
The EIN is your company’s tax ID number. You need it to open a bank account, hire employees, and file taxes.
You can apply directly with the IRS or use a service like Firstbase.io or Doola, which help non-residents complete the process.
Step 5: Create an Operating Agreement or Bylaws
An Operating Agreement (for LLCs) or Bylaws (for corporations) outlines how your business is managed, who the members are, and how profits are distributed.
Although it is not always required by law, it is highly recommended to have this document in place.
5. Opening a U.S. Bank Account as a Non-Resident
Once your company is formed and you have your EIN, the next step is to open a U.S. business bank account. This can seem challenging for foreign owners, but there are several ways to do it.
Option 1: Open the account in person
Some U.S. banks require you to visit a branch to verify your identity. If you travel to the U.S., this option gives you access to large banks such as Chase, Bank of America, or Wells Fargo.
Bring these documents:
- Articles of Organization or Incorporation
- EIN confirmation letter
- Operating Agreement or Bylaws
- Passport or government ID
You will want to check with the banks you are applying with as well, this list may not be all inclusive of the documents they want to see and every bank may have different requirements.
Option 2: Open an online account
If you cannot travel to the U.S., many financial technology platforms now allow non-resident founders to open U.S. business accounts remotely.
Popular options include:
- Mercury: Designed for startups and global entrepreneurs.
- Relay: Offers business banking with no monthly fees.
- Wise Business: Allows multi-currency banking and transfers.
These accounts are fully functional U.S. bank accounts with routing and account numbers, making them ideal for accepting payments and managing business expenses.
Option 3: Work with a company formation partner
If you prefer a hands-off approach, services like Firstbase.io and Doola can help you form your company and open a U.S. bank account as part of one streamlined package.
They handle the registration, EIN, and banking setup while you focus on running your business.
6. Common Challenges for Non-Resident Founders
Setting up a U.S. company as a foreigner is possible, but you may face a few obstacles:
- Some banks require a U.S. address or phone number.
- You cannot use a personal bank account for business transactions.
- You may need to provide extra documentation for identity verification.
- Maintaining compliance with IRS tax filings can be confusing without help.
The good news is that these challenges are manageable with proper planning and support.
7. Tax Responsibilities After Formation
Once your company is up and running, it is essential to understand your ongoing tax obligations.
For example:
- A foreign-owned SMLLC must file Form 5472 and a pro forma 1120 annually.
- A MMLLC must file Form 1065 and issue K-1s to each member.
- A C Corporation must file Form 1120 and pay corporate income tax on its profits.
Even if your company earns no income, you still need to file these forms to stay compliant with the IRS.
This is where Bookmate can help.
8. How Bookmate Helps
At Bookmate, we specialize in making compliance simple for foreign-owned U.S. companies.
We handle:
- Federal tax returns (Forms 5472, 1120, or 1065)
- Bookkeeping to track income and expenses accurately
- IRS correspondence and follow-ups to keep your company in good standing
We do not handle company formation, EIN registration, or bank account setup, but we partner with trusted incorporation providers like Firstbase.io and Doola that can guide you through that process.
Once your company is established, Bookmate ensures that your tax filings and books are accurate, complete, and filed on time.
9. Building Your Business the Right Way
Forming a U.S. company and opening a U.S. bank account are the first steps toward building a reliable, global business presence.
Whether you are a freelancer, startup founder, or small business owner, the combination of a U.S. entity and bank account gives you credibility, flexibility, and smoother access to payments and clients.
However, your business’s success also depends on staying compliant. Taxes and bookkeeping are not optional—they are essential for keeping your company in good standing and avoiding penalties.
That is where Bookmate comes in. We make sure that your filings, reports, and records stay in order so you can focus on what really matters: growing your business.
Learn more at www.trybookmate.co
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