STARTING A BUSINESS
IN THE USA
Starting a business in the USA gives international companies access to one of the largest single markets in the world and visibly more credibility with American customers. InterGest USA has guided foreign companies through this since 1997, today from its Dallas, Texas base.
WHAT YOU NEED TO KNOW ABOUT STARTING A BUSINESS IN THE USA
For foreign companies, a corporation (C-Corp) is usually the right vehicle: liability is limited to the company’s assets, and shareholders are liable only up to their capital contribution. There is no statutory minimum capital; at least USD 1,000 is advisable to build credibility with banks and business partners. US company formation costs around USD 4,000 and takes about one month. The process runs through five steps, from choosing the state of incorporation to the bank account. No personal appearance is required.
Interested in other countries where InterGest is present? You will find more on our overview page starting a business abroad, including a comparison table of the most common legal forms and regional overviews, for example on starting a business in Germany, in Mexico, China or India.
An overview of all InterGest services is on our services page.
WHAT ARE THE ADVANTAGES OF STARTING A BUSINESS IN THE USA?
The main reason is quickly stated: the USA is one of the largest single markets in the world, and a company selling there is taken seriously as part of the market once it has its own entity. Five further points come on top, and their weight depends on your business model:
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Credibility: A US company builds trust with customers, suppliers and banks. For many procurement teams, an American contracting party is simply a requirement.
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Payments: Invoices in US dollars, a local business bank account and simpler payment flows between subsidiary and parent.
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Supply chain: Sourcing or producing locally reduces exposure to tariffs and import charges, which have changed frequently in recent years. For pure service businesses this matters less.
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Visa perspective: With a US subsidiary, work visas for employees of the parent company can be applied for under certain conditions.
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Free trade: The USMCA agreement governs access to the neighbouring markets of Canada and Mexico.
One honest caveat belongs here too: US subsidiaries face double taxation: corporate income tax at the federal and, where applicable, state level, plus tax on dividends. And the legal system demands discipline, from employment contracts to product liability. This is exactly where InterGest USA comes in.
Legal form: LLC (limited liability company)
Liability: Limited
Typical use: Flexible structure, can be tax-transparent
Suitability for foreign investors:
Possible, often complex for foreign parent companies
Legal form: C-Corp (corporation)
Liability: Limited to the company’s assets
Typical use: Subsidiary, production, sales
Suitability for foreign investors:
Very suitable, the standard recommendation
WHICH LEGAL FORM IS RIGHT FOR STARTING A BUSINESS IN THE USA?
For foreign companies, a corporation is usually the recommended route, typically as a C-Corp. Its shares are not publicly traded, liability is limited to the company’s assets, and shareholders can be held liable only up to their capital contribution. The shareholders appoint a board of directors; the board in turn appoints the corporate officers (president, treasurer and secretary), who act in the day-to-day business. In practice, an InterGest partner or another trusted person can hold one of the three offices so the company always remains able to act.
US law offers further routes as well: the LLC, a flexible limited-liability form that can be treated as tax-transparent; for foreign parent companies this is often more complex than it sounds. A branch works without a separate entity but leaves the parent directly liable. A joint venture with a US partner is an option when market or sales access is the priority.
There is no statutory minimum capital. Every company does, however, need a state of incorporation and a registered agent there; which state fits is above all a tax question.
Legal form: Branch
Liability: Parent company is directly liable
Typical use: Dependent presence without a separate entity
Suitability for foreign investors:
Only for special cases
Legal form: Joint venture
Liability: Depends on the structure
Typical use: Market entry with a US partner
Suitability for foreign investors:
Possible, contract design is decisive
Advantage: The C-Corp gives the parent full control and a clear governance structure. It can hire staff, sign contracts and acquire property without needing an American co-shareholder.
Ongoing duties: bookkeeping, tax returns at federal and state level, and the annual filings and fees of the state of incorporation.
What steps does STARTING A BUSINESS IN THE USA involve?
US company incorporation is organised in five steps:
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Choose the state of incorporation: The first decision is which state the company will be registered in. InterGest advises on this with the tax aspects in mind.
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Register the company: InterGest works with a registered agent, registers the company in the state of choice and arranges the US certificate of incorporation.
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Draft the bylaws: Together with the lawyer and in consultation with you, the bylaws are drawn up; the board of directors and the officers are appointed.
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Apply for the tax ID: InterGest applies for the company’s Employer Identification Number (EIN) with the IRS.
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Open the bank account: InterGest opens the US business bank account in the company’s name; this takes about two weeks.
All in all, the formation takes about one month. No personal appearance is required; every step can be handled from abroad.
Item
Choosing the state of incorporation and the structure
Registration and certificate of incorporation
Bylaws and appointment of the corporate bodies
Tax ID (EIN) from the IRS
Bank account opening
Typical total
Duration
A few days
A few days to 2 weeks
In parallel with the registration
A few days to several weeks, depending on the procedure
Approx. 2 weeks
~ 1 month until the company is ready to operate
What does STARTING A BUSINESS IN THE USA cost and how long does it take?
For starting a business in the USA, plan around USD 4,000 as a guide; this covers, among other things, the registered agent, the state fees of the state of incorporation, the bylaws and the application for the tax ID. It takes about one month until the company is ready to operate.
Share capital: There is no statutory minimum capital. We recommend paying in at least USD 1,000 to build credibility with banks and business partners; better still a reserve for the operating costs of the first months.
Ongoing taxes: At federal level, corporate income tax is 21 %. On top comes a state corporate income tax of between 0 and 11.5 %, depending on the state; some states waive it but levy substitute charges. There is no nationwide VAT; instead, states and municipalities charge a sales tax on sales to end customers, usually between 0 and around 10 % depending on the location. Dividends to the foreign parent are generally subject to 30 % withholding tax; the double-taxation treaty with Germany reduces this to 15 %, to 5 % from a 10 % shareholding, and to 0 % from an 80 % shareholding under further conditions.
Note: The actual burden depends, among other things, on the state of incorporation, the states in which the company does business, the corporate structure and the double-taxation treaty.
Which documents do I need for STARTING A BUSINESS IN THE USA?
Starting a business in the USA takes surprisingly little paperwork. The registration mainly requires:
For the company:
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Company name and state of incorporation
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Description of the business purpose
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Details of shares and capital contribution
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Registered agent in the state of incorporation
For shareholders and corporate bodies:
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Register extract of the foreign parent company
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Proof of identity of the foreign shareholders
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Details of directors and officers (president, treasurer, secretary)
Registration alone is not the end of it: next come the tax ID (EIN), the bank account with the bank’s KYC check and, depending on state and industry, individual business licenses. InterGest coordinates documents and filings in the right order. You will find answers to common questions in our FAQs.
Which legal aspects apply when STARTING A BUSINESS IN THE USA?
The most important point first: company registration in America happens at state level, because company law is state law. There is no central United States company register as in Germany; the registers are kept by the secretary of state of the respective state of incorporation, who also issues the certificate of incorporation and, on request, a certificate of good standing as proof of registration.
At federal level, the tax authority IRS, which issues the Employer Identification Number, and the trademark office USPTO come into play. A company doing business in several states may become subject to additional registration and tax obligations there.
These authorities and legal foundations shape every company formation in the USA:
Legal basis / authority: Corporate law of the state of incorporation (e.g. Delaware General Corporation Law)
Function: Governs formation, corporate bodies, capital and liability.
Legal basis / authority: Secretary of state (state of incorporation)
Function: Keeps the company register, issues the certificate of incorporation and the certificate of good standing.
Legal basis / authority: Registered agent
Function: Agent for service of process in the state of incorporation, mandatory for every company.
Legal basis / authority: IRS (federal tax authority)
Function: Issues the tax ID (EIN) and levies the federal taxes.
Legal basis / authority: State tax authorities
Function: Levy corporate, substitute and sales taxes at state level.
Legal basis / authority: USPTO (trademark office)
Function: Nationwide trademark registration, base fee USD 350 per class.
The federal tax authority is at irs.gov; the register services of Delaware, a frequently chosen state of incorporation, are bundled at delaware.gov.
What financing options are there for STARTING A BUSINESS IN THE USA?
Parent companies typically finance starting a business in the USA from a mix of several sources:
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Equity from the home country: The standard route. The contribution goes into the company as capital; a reserve for the operating costs of the first months belongs in the plan.
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Shareholder loans: Loans from the parent company are common. The contract and market-rate interest should be documented so that interest and repayment are recognised for tax.
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Local bank loans: US banks finance established business models but require collateral and a credit history; in the start-up phase, equity remains the more reliable route.
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Venture capital: Venture capital, business angels and crowdfunding are more developed in the USA than anywhere else; for the classic subsidiary of a mid-sized company they rarely play a role.
Which structure fits depends on the sector, the capital requirement and the pace; usually it is equity plus a shareholder loan. InterGest USA reviews the capital structure as a whole and makes sure it does not unnecessarily complicate the later repatriation of profits.
Which three pitfalls await when STARTING A BUSINESS IN THE USA?
Three mistakes repeatedly cost companies time and money when they start out in the USA:
Underestimating employment law and culture
Employees in the USA generally work under the employment-at-will principle: they can leave without notice and be dismissed just as fast. Anyone expecting German-style loyalty and procedures is planning past reality.
InterGest drafts employment contracts in line with US practice and supports hiring and day-to-day HR.
Ignoring tax obligations
The US tax system is built on self-assessment. You should be well advised about your obligations at federal and state level. Even a company based in a state without corporate income tax often pays substitute charges there, and quickly becomes taxable in other states once it does business in them.
InterGest keeps deadlines and filings in every affected state on track, together with experienced tax advisors and CPAs.
Underestimating product liability
If a product fails, US damages claims can be high, far higher than in Europe. Without suitable insurance, a single case can quickly threaten the company’s existence.
InterGest arranges suitable insurance cover and brings in experienced lawyers for contract questions.
FREE BOOK BY PETER ANTERIST
The 11 most expensive mistakes when starting a business abroad
Peter Anterist, CEO of InterGest Worldwide GmbH, has distilled the experience of more than 50 years of international company formation practice and projects in 50+ countries into a book: Fail in Foreign Trade. 11 typical pitfalls when starting a business abroad, from bogus self-employment and transfer pricing to compliance, and how international companies avoid them.
What services does InterGest offer for company formation in the USA?
Short answer: InterGest USA guides foreign companies from the choice of legal form and the formation through accounting, payroll and tax preparation in the United States to the reporting for headquarters. The team works in German, English and Spanish, out of Dallas, Texas.
Led by Gregor Vorderwülbecke, InterGest USA bridges the gap between American administrative, banking and legal practice and what an international parent company expects in reports and standards. The scope covers the bookkeeping services USA-based subsidiaries typically outsource, done in-house by the InterGest team.
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Formation: State of incorporation, registered agent, certificate of incorporation, bylaws, tax ID and bank account: we prepare the documents and coordinate everyone involved.
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Advice: Location, legal form and route to market, worked out on your actual project, not in theory.
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Accounting: Our team keeps the books to US requirements, issues outgoing invoices, handles the banking and prepares the reporting for headquarters. Unlike many accounting firms in America, we deliver formats your head office actually knows, IFRS mapping included.
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Tax: Federal and state taxes, sales tax filings, deadlines; aligned with the accounting and together with experienced tax advisors, lawyers and, where audits are required, a licensed United States CPA (certified public accountant).
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Payroll and HR: We act as the payroll provider USA-based employees are paid through: payroll under US law, social contributions, employment contracts in line with local practice and, on request, recruiting support, including specialised US recruitment consultants for key roles.
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Controlling: Monthly consolidation and cross-border reporting, on request in the logic of your group standard.
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Payments and administration: Invoicing, payment monitoring, debt collection, fiduciary administration, and arranging logistics providers for import, export and order fulfilment, as well as insurance cover.
A single point of contact handles all commercial project management on the US side for you, including coordination with your attorney, bank and CPA. You no longer have to run back and forth between them.
Our page with all InterGest services gives you an overview of our worldwide range. You have one point of contact for everything.
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InterGest USA
President:
Gregor Vorderwülbecke
IG North America, Inc.
12222 Merit Drive, #130
Dallas, TX 75251
USA
Phone: +1 631 683 96 61