The process for founding a company in the U.S. is influenced by both federal and state-level regulations, and it can vary significantly depending on the location. However, the federal government and state governments often align to encourage entrepreneurship, especially under shifting political climates.
How to Incorporate a Company in the U.S. and Timelines
While the process of company incorporation remains relatively straightforward, the timeline and specific process may vary based on the state of incorporation and federal regulations, particularly with changes in government leadership.
- Choose the Corporate Structure:
- LLC (Limited Liability Company): Often the preferred structure for small businesses due to its flexible management and tax benefits.
- Corporation (C-Corp or S-Corp): Preferred for larger businesses or those planning to issue stock. C-Corps are subject to double taxation, while S-Corps provide pass-through taxation.
- Register with the State:
- Businesses must file with the state where they will operate. Each state has different filing requirements, fees, and processing times.
- Delaware continues to be the most popular state for incorporating businesses due to its business-friendly laws and tax structure.
- New States’ Incentives: Under Trump’s influence, more states may introduce tax incentives to attract businesses, particularly those in tech or manufacturing.
- Create Articles of Incorporation/Organization:
- For LLCs or Corporations: Articles must specify the company’s name, business purpose, registered agent, directors or members, and the number of shares (if applicable).
- State-Specific Forms: Most states offer online filing options, making the process quick, often completed within 1-2 weeks, with some states allowing same-day filing.
- Get an Employer Identification Number (EIN):
- Mandatory for All U.S. Businesses: The EIN is required for tax reporting, hiring employees, and opening a business bank account.
- IRS Filing: You can apply online for an EIN, which is typically processed immediately.
- Compliance and Ongoing Filings:
- Federal and State Taxes: Once incorporated, businesses must comply with IRS regulations and state-level taxes, including sales tax, property tax, and income tax, if applicable.
- Annual Reports: Many states require annual reports and fees to maintain the good standing of the company.
- Timeframe for Incorporation:
- State-Level Incorporation: In most states, the incorporation process can be completed in 1-2 weeks, but delays can occur depending on the state’s backlog.
- Considerations for 2025: Depending on federal policies under Trump’s administration, there may be efforts to streamline and expedite business registration processes for foreign entities or those wishing to relocate or expand into the U.S.
Key Considerations for Business Founders in the U.S. Post-Trump Presidency
Deregulation: Businesses could see more deregulation in industries like finance, manufacturing, and energy, simplifying the compliance burden for new businesses.
Tax Reforms: There may be continued reductions in corporate tax rates, as the Trump administration previously pursued. These changes will benefit companies looking to reduce their tax burdens and increase investment opportunities.
Immigration Changes: Expect stronger emphasis on attracting skilled foreign entrepreneurs and investors, but with continued scrutiny over worker visas. Entrepreneurs may find new pathways to U.S. residency through business creation and investment.
Navigating the incorporation process and ensuring compliance with U.S. regulations can be complex. Altios, a global consulting firm specializing in international business expansion, can provide expert guidance tailored to your specific needs. Contact Altios to receive strategic advice on U.S. market entry, incorporation, and regulatory compliance.
