Starting a business in
🇺🇸United States
Checked November 4, 2026 · How we score
Corporate tax
21%
Top income tax
37%
Setup from
$300
all-in, first year
Time to form
3 days
can be done remotely
Taxes in USA
| Corporate income tax | 21% 21% federal on C-corporations (e.g. a Delaware C-Corp), plus state corporate tax where the company operates (0% in Wyoming/South Dakota/Nevada-style states; roughly 2.5%–9%+ elsewhere; Delaware 8.7% only on in-state income). A single-member LLC owned by a non-US person is a disregarded entity: no US federal income tax if it has no US-source effectively connected income (ECI) or US trade or business, but it must file Form 5472 with a pro-forma Form 1120 every year (penalty $25,000 per missed form). US-source FDAP income is subject to 30% withholding unless a treaty reduces it. |
|---|---|
| Personal income tax (top) | 37% Federal top marginal rate 37% for US tax residents plus state income tax (0% in states such as Texas, Florida, Wyoming, Nevada; up to ~13% in California). Non-residents are taxed only on US-source income. The US is the only major country that taxes citizens on worldwide income wherever they live (citizenship-based taxation); green-card holders are taxed as residents. |
| Tax system | Citizenship-based (worldwide) |
| Capital gains tax | 20%Long-term federal rate 0/15/20% (plus 3.8% net investment income tax on higher earners); short-term gains taxed as ordinary income. Non-resident aliens generally pay no US tax on gains from selling US stocks (unless present 183+ days), but gains on US real property are taxed under FIRPTA. |
| Dividend withholding (non-residents) | 30% |
| VAT / GST | None |
| Social security | No federal VAT; state and local sales taxes apply (0%–10%+). Employer/employee Social Security and Medicare payroll taxes (7.65% each, plus employer extras) apply to wages paid to workers on US payroll; Totalization agreements exist with many countries. |
Forming a company in USA
| Usual entity | Delaware C-Corporation (venture standard) or Wyoming/Delaware LLC (pass-through, popular with non-residents) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $300–$2,500 |
| Annual running cost | $400–$2,500 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
Forming a US company does not give you a right to live or work in the US. Founders typically need an O-1, E-2 (treaty countries), L-1 or H-1B; EB-5 requires about $800,000 in a targeted employment area ($1.05M elsewhere) and has long backlogs for some nationalities. Non-resident owners of a US LLC can run it entirely from abroad.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $800k |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Non-resident owned disregarded LLC
A single-member Wyoming, Delaware or New Mexico LLC owned by a non-US person with no US office, employees or US-source ECI usually owes no US federal income tax, but must file Form 5472 and a pro-forma 1120 each year and obtain an EIN.
Delaware C-Corp for venture funding
Investors expect a Delaware C-Corp (21% federal tax, QSBS potential for US holders). Foreign founders often use it with a Stripe Atlas or law-firm package; dividends to non-residents face 30% withholding unless reduced by treaty.
State choice
State of formation and state of operation differ in cost and tax. See the /us-states/ pages on this site for Wyoming, Delaware, New Mexico, Florida, Texas and others.
Pros and cons
Why founders pick USA
- Best access to Stripe, US banks, investors and enterprise customers
- Non-resident-owned LLC can be tax-neutral in the US while you pay tax at home
- Fast, cheap online formation with a registered agent
- Strong legal system and the highest global credibility
Watch out for
- Form 5472 and other IRS filings carry heavy penalties if missed
- Federal plus state tax on any US-source business income, with 30% withholding on many payments to non-residents
- Your home country may still tax the LLC (CFC rules) even if the US does not
- A company does not grant residency or the right to work in the US
Best for: SaaS and e-commerce founders selling to US customers · Startups raising venture capital (Delaware C-Corp) · Non-US freelancers wanting Stripe, PayPal and a US bank account via an LLC
USA: common questions
Can a non-US resident open a US LLC?
Yes. Non-residents can form an LLC in any state remotely using a registered agent, with no US visa, SSN or office needed. You then obtain an EIN from the IRS (via Form SS-4 by fax or mail if you have no SSN). Wyoming, Delaware and New Mexico are the usual choices.
Does a foreign-owned US LLC pay US taxes?
A single-member LLC owned by a non-resident alien with no US-source effectively connected income generally pays no US federal income tax, but it must file Form 5472 with a pro-forma Form 1120 annually (the penalty for failing to file is $25,000). Income that is effectively connected with a US trade or business is taxed, and certain US-source passive income faces 30% withholding. Your home country may tax the profits.
What is the US corporate tax rate in 2026?
The federal corporate income tax rate is a flat 21% for C-corporations. States add their own taxes, so the combined rate is typically around 25% in most states, lower in states with no corporate income tax such as Wyoming or Nevada (which levy other taxes).
Delaware C-Corp or Wyoming LLC for a foreign founder?
Choose a Delaware C-Corp if you plan to raise venture capital or issue stock options, because investors expect it. Choose a Wyoming or Delaware LLC if you are bootstrapping, want pass-through treatment and lower fees, and plan to sell worldwide. You can convert an LLC to a C-Corp later.
Do US citizens living abroad still pay US tax?
Yes. The US taxes citizens and green-card holders on worldwide income regardless of where they live. Relief comes from the Foreign Earned Income Exclusion (about $130,000 in 2025), the foreign tax credit and tax treaties, but returns must still be filed. Renouncing citizenship is the only way to leave the system, and an exit tax can apply.
Can I get a US bank account without visiting the US?
It is possible. Several fintechs (Mercury, Relay and others) and neobanks onboard non-resident-owned US LLCs remotely, and Stripe and Wise Business are widely available. Approval depends on your country, business model and documentation, and some providers have tightened non-resident rules.
Sources
- IRS: Foreign-owned U.S. DEs (Form 5472) filing
- IRS: Corporations
- PwC Worldwide Tax Summaries: United States
Compare USA
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.