How to Open a US Company: GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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There are a number of reasons to open a US company. For one, the United States is one of the most innovative countries in the world, and diversity is a big reason why. Immigrants make up just 13.5 percent of the population, yet they drive more than a third of the nation’s innovations.

That strength keeps the U.S. at the forefront of science and technology. Ideas move fast—from discovery to development to market. And while other countries are investing heavily in emerging tech, the U.S. continues to set the pace.

Before expanding into the U.S., entrepreneurs should focus on developing a strong business idea, as this is the essential first step in turning a concept into a successful enterprise.

For businesses looking to expand, that makes the U.S. a smart choice. GEOS helps you take advantage of these strengths by simplifying setup and letting you focus on growth.

Why Should You Expand to the USA?

The United States stands out as one of the best places in the world to grow a business. That’s why so many entrepreneurs choose to open a US company.

Innovation is only part of the picture, especially when considering the strengths in specific industries . The U.S. also offers the kind of market power and consumer demand that helps businesses grow faster.

World’s Largest and Most Diverse Market

With a GEOS Global Subsidiary Index Score of 78.4, the US offers market size, innovation, and a business climate that welcomes growth. Few markets give you the same mix of opportunity and access.

• Population strength: The U.S. scores a perfect 5/5 in population, the largest in the index. That means plenty of consumers to reach and one of the world’s deepest talent pools to hire from. It’s a rare combination that fuels both sales and workforce growth.
• Purchasing power: In 2024, GDP per capita hit USD 66,682.61, or 528% above the global average. People have money to spend, and they’re often willing to pay for premium products and services. For businesses, that makes it easier to grow revenue and boost margins.
• Steady growth and balance: The U.S. earns a 5/5 GDP growth score, supported by a diverse range of industries. Tech, finance, healthcare, manufacturing, and creative sectors all play a role. That balance lowers risk and gives companies different ways to enter the market.
• Innovation leader: Ranked 3rd in the Global Innovation Index 2024 and 1st in North America, the U.S. is home to 20 science and tech clusters in the world’s top 100. It invests heavily in research and embraces new technology quickly, creating space for businesses to test, adapt, and scale.

Choosing to open a US company isn’t just about chasing a bigger market. With hubs like Silicon Valley, Boston, and New York shaping what comes next, the U.S. gives businesses the chance to grow faster and compete with the best.

Creating a Business Plan for US Expansion

A comprehensive business plan is essential when starting a business or expanding into the US market. This document outlines your company’s objectives, strategies, and the steps needed to achieve success. For US expansion, your business plan should include detailed market research, a competitive analysis, and realistic financial projections.

It’s also important to define your management structure, marketing approach, and operational plans to ensure your new business is positioned for growth. Don’t overlook the legal requirements—registering your company with the federal government and securing the necessary licenses and permits are crucial steps.

The Small Business Administration’s Business Guide is a valuable tool, offering step-by-step instructions to help you navigate the process and ensure your plan meets all requirements. With a solid business plan in place, you’ll have a clear vision and a practical roadmap for launching and growing your company in the US.

Competitive Tax & Business Environment

The U.S. tax and business system is competitive but layered. Companies face a clear federal framework, with differences at the state level adding both challenges and opportunities. Businesses must interact with various government agencies at the federal, state, and local levels to ensure compliance with tax and regulatory requirements.

• Corporate tax rate: The federal corporate tax is a flat 21%. States add anywhere from 0% to about 12%. That puts the U.S. in the middle of the pack globally, scoring 5/10 for competitiveness. The 2017 Tax Cuts and Jobs Act lowered the rate from 35%, keeping the U.S. attractive compared to other major economies.
• Alternative minimum tax (CAMT): Big corporations face a 15% minimum tax on adjusted financial statement income. This applies mainly to companies with over USD 1 billion in average annual income. Smaller firms aren’t affected, but global players need to factor it into long-term planning.
• Openness to foreign ownership: Most states allow 100% foreign ownership with few restrictions. That gives the U.S. an 8/10 score for openness. The Corporate Transparency Act does require UBO reporting, but compliance is straightforward and focused on record-keeping. However, certain business structures, such as S-Corporations, are limited to U.S. citizens and permanent residents, so permanent residents have specific eligibility advantages.
• Ease of doing business: Federal systems are well-defined, and corporate law is clear. The complexity comes from state-by-state differences in tax and regulation. That balance gives the U.S. an 8/10 score for ease of doing business.
• Employer payroll contributions: Employers make predictable payments into Social Security, Medicare, and unemployment insurance. These contributions don’t change much year to year, earning the U.S. a 4/5 score for payroll stability.

Overall, the U.S. offers a system that’s structured, competitive, and open to foreign investment. Federal rules bring stability, while state differences create flexibility for companies that know how to navigate them.

Workforce & Hiring Considerations

Hiring in the U.S. has clear benefits, but it also comes with challenges. Federal labor laws are well defined, yet state rules add layers of complexity. This gives the country an employment law complexity score of 8/10. Understanding the process to hire employees is crucial, as it requires compliance with both federal and state regulations.

• Employment laws:The Department of Labor enforces over 180 federal laws covering wages, overtime, safety, benefits, and leave. States add their own rules, which can vary a lot. For example, some states require paid sick leave while others do not.
• Union presence: Light in tech and services but stronger in manufacturing, education, and government. This mix creates a union complexity score of 5/5. Most companies in modern industries face little union activity, but traditional sectors should expect organized bargaining.
• Recruitment challenges: The job market is competitive, especially for senior leaders and skilled tech workers. That makes hiring tough and earns the U.S. a recruitment difficulty score of 8/10.
• Salaries: Pay levels in major cities are some of the highest in the world. Places like San Francisco, New York, and Boston demand top-dollar wages. This pushes the salary benchmarking score down to 2/10. Companies expanding need to plan carefully for payroll.

The U.S. workforce is skilled, diverse, and full of opportunity. But when you open a US company, it’s important to prepare for competition in hiring and expect state laws to shape how you manage people. Those who plan ahead can tap into one of the strongest labor markets in the world.

Incorporation, Business Structure & Compliance Essentials

When you open a US company, you need to understand the basic steps involved in company registration.

Starting a company in the U.S. is fast. Most states process incorporations in 1–3 days. The main delay comes from getting an Employer Identification Number (EIN), which can take weeks for foreign-owned businesses.

• Registered address: Easy to set up. Many states allow virtual addresses (5/5 score). Specifying a physical location—such as a home, office, or commercial space—is required for registration and compliance, and can impact tax obligations and branding.
• Paperwork: Minimal requirements. Few notarizations or apostilles needed (5/5 score).
• State selection matters: Delaware remains the most popular thanks to its corporate-friendly laws and courts. Wyoming and Nevada are gaining ground with lower annual fees, strong privacy protections, and no corporate income tax.
• Federal filings: Most companies must submit beneficial ownership reports (BOI) to FinCEN. Reports are free and only updated when ownership changes.
• State filings: LLCs, corporations, partnerships, and nonprofits must register in the state where they operate. Expanding across state lines requires foreign qualification in each new state. Over time, this can add cost and administrative complexity.
• Registered agent: Every business needs one in the state of formation. Many hire agent services for convenience.
• LLC vs. Corporation: LLCs offer flexibility, but corporations are often better for subsidiaries. They provide clear share structures, are familiar to investors, and have standardized compliance. Both LLCs and corporations protect owners from personal liability, safeguarding personal assets from business debts and legal actions.
• Documents: LLCs file Articles of Organization; corporations file Articles of Incorporation; partnerships file certificates and agreements.

Overall, incorporation in the U.S. is among the fastest globally. The process to open a US company is relatively simple, predictable, and manageable with the right planning and state choice.

Obtaining an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a critical requirement for any business operating in the United States. Issued by the Internal Revenue Service (IRS), this unique nine-digit number is used to identify your business for tax purposes.

Whether you’re forming a sole proprietorship, a limited liability company, or another type of business, obtaining an EIN is one of the first steps after starting a business. Sole proprietors may not need an EIN unless they hire employees or meet certain IRS criteria.

The process is straightforward: simply complete Form SS-4 and submit it to the IRS online, by phone, or by mail—there’s no fee involved. An EIN is required if you plan to hire employees, open a business bank account, or file taxes.

Your EIN will be necessary for opening a business bank account, applying for credit, and filing tax returns. The EIN functions like a social security number for businesses, serving as a key identifier and helping to protect your business’s identity.

It’s also required for limited liability companies and other businesses to establish themselves as distinct legal entities. For detailed instructions, visit the IRS website, and consult the SBA for additional guidance on securing your EIN and meeting all federal requirements.

Opening a US Business Bank Account

Opening a US business bank account is a vital step in managing your company’s finances and establishing a separate legal entity for your business. By keeping personal and business finances distinct, you simplify accounting, protect your personal assets, and build business credit.

To open a business bank account, you’ll typically need to provide documentation such as your business license, articles of incorporation, and your Employer Identification Number (EIN). Most banks and credit unions offer a range of business banking services, including business accounts that allow you to receive payments, write checks, and manage cash flow efficiently.

Having a dedicated business bank account also makes it easier to track business funds and meet tax obligations. The Small Business Administration’s website lists banks and credit unions that cater to small businesses, while the FDIC provides tips on choosing the right business bank for your needs. Taking this step early helps ensure your business operates smoothly and professionally from day one.

Financial & Operational Considerations

The U.S. has one of the strongest financial systems in the world. Its banking network is deep, reliable, and globally connected. This makes it easy to move money, raise capital, and handle cross-border payments. That’s why the U.S. earns a 5/5 score for financial infrastructure.

Expenses are also predictable. Businesses face clear rules on rent, salaries, and taxes. Even in high-cost cities, costs are transparent and easy to plan for. This gives the U.S. another 5/5 score for expense management.

Pensions work differently. There’s no mandatory employer pension program. Instead, retirement plans like 401(k)s are optional. That gives you flexibility when you open a US company, but it also adds complexity when competing for talent. This leaves the U.S. with a 2/5 score for pension management.

Overall, the U.S. offers stability and clarity. The financial system is strong, costs are transparent, and while pensions are voluntary, they remain an important part of attracting and keeping skilled workers.

Exploring Startup Financing Options

Finding the right financing is a key challenge for any new business. There are a variety of options available to help you secure the capital needed to launch and grow your company. T

he Small Business Administration is a great resource, offering programs such as the 7(a) loan, microloans, and the CDC/504 loan program, all designed to support small businesses at different stages.

Beyond traditional loans, you might consider alternative funding sources like crowdfunding platforms, angel investors, or venture capital. Each financing option comes with its own terms, including interest rates, repayment schedules, and collateral requirements, so it’s important to compare your choices carefully.

A well-prepared business plan and clear financial projections are essential when approaching lenders or investors. These documents demonstrate your business’s potential and help build confidence in your plan. By exploring all available financing options and preparing thoroughly, you can secure the resources your new business needs to succeed.

Immigration & Work Permits

Immigration in the U.S. is complex. The Immigration Complexity Score is just 1/5, which shows how tough the system is to work through. Visa processes are long, competitive, and require careful planning.

The most common business visas include:

• H-1B: For skilled workers in specialty jobs. Highly competitive, with a yearly lottery.
• L-1: For intra-company transfers, often used to move executives or specialists.
• O-1: For people with extraordinary ability in areas like science, tech, or the arts.

Each visa type comes with strict rules, and approvals can take months. Employers usually have to start the process well before they actually need the hire.

On top of that, U.S. immigration law is outdated and limited. There are only four main paths to permanent residence: family sponsorship, employment-based visas, the diversity lottery, and humanitarian relief. All of them are capped and tightly controlled.

For employers, this makes it hard to secure long-term authorization for foreign employees. Many end up relying on temporary visas while trying to navigate the system.

Resources also play a role. Those with money or rare skills often have an easier time finding sponsors, paying fees, and moving through the process. Smaller companies and less-resourced applicants face bigger roadblocks.

Still, skilled immigration remains key to U.S. growth. Employers who plan ahead, get solid legal advice, and line up immigration strategy with workforce planning are far better positioned to succeed.

Talent Availability & Scaling Considerations

The U.S. ranks 21st in IMD’s 2024 World Talent Ranking with a score of 66.84 (imd.org). It’s still one of the strongest markets for skilled professionals, with depth across marketing, finance, and technology.

The marketing talent score is 5/5. GTM specialists bring global market experience and sharp digital skills, giving companies the know-how to grow and expand internationally.

The finance talent score is also 5/5. A wide pool of managers, analysts, and accountants supports businesses of all sizes, making financial expertise easy to access at every stage.

The developer talent score is 5/5, too. With 6.2 million tech workers and hubs spread from Silicon Valley to Austin, the U.S. has one of the deepest engineering talent bases worldwide. Demand keeps salaries high, but the scale and quality of expertise make it a major advantage.

Together, these strengths give companies the talent they need to scale quickly and compete with confidence on the global stage. As your business grows, it’s crucial to implement scalable financial and operational systems to maintain efficiency and compliance.

Creating Key Internal Documents

Developing key internal documents is essential for setting your business up for success and ensuring smooth operations as you grow. Start with a comprehensive business plan that outlines your company’s goals, strategies, and financial projections. This plan serves as a roadmap for your business and is often required when seeking financing or investors.

An operating agreement is another crucial document, especially for businesses with multiple owners or managers. It defines roles, responsibilities, and decision-making processes, helping to prevent misunderstandings. An employee handbook is also important, as it communicates company policies, expectations, and benefits to your employees, fostering a positive workplace culture.

Additionally, policy and procedure manuals provide clear guidelines for specific business functions, ensuring consistency and compliance. The Small Business Administration offers templates and resources to help you create these documents, and consulting with a business attorney or advisor can provide further guidance. Regularly reviewing and updating your internal documents keeps your business operating efficiently and in line with best practices.

Establishing an Online Presence

Every business needs a strong online presence. A professional, mobile-friendly website is the best place to start. It should highlight your products or services, tell your story, and make it easy for customers to reach you. A good website builds credibility and acts as the hub for all your marketing.

Social media gives you another way to connect. Use it to share updates, engage with your audience, and grow your brand. Online directories like Google My Business also help people find you. They show key details like your hours, services, and location.

Think about your audience as you build. Keep your branding consistent across platforms. Make sure your site is secure, easy to use, and mobile-ready. For extra support, the Small Business Administration offers guides on websites, social media, and online ads. These tools can help your business stand out.

Unique USA Expansion Insights

For foreign-owned companies, the biggest delay after incorporation is getting an EIN. U.S.-based entities can apply online and receive one right away, but foreign applicants must apply by fax or mail. That process often stretches from a few days to several weeks.

State choice also plays a major role. Delaware has long been the top pick because of its corporate-friendly laws and courts. Wyoming and Nevada are becoming popular too, offering lower fees, strong privacy protections, and no corporate income tax.

Expansion beyond your home state brings extra steps. To operate in another state, you need to register as a “foreign” entity. This adds filing fees, annual reports, and tax obligations, which can become costly and complex over time.

The decision between an LLC and a corporation shapes your long-term strategy. LLCs are flexible and simple, but corporations are usually better for subsidiaries. They provide clearer share structures, align with investor expectations, and make compliance more straightforward.

Banking is generally reliable, but opening a U.S. account can still take time. Many banks require in-person signatures, which can slow the process if company leaders are overseas.

Expanding into the U.S. is quick to begin but demands careful planning. The choices you make around business structure, state strategy, and compliance will shape both costs and opportunities as you grow your new commercial enterprise .

How GEOS Simplifies Your Expansion into the USA

Expanding into the U.S. can be complex, but GEOS makes it clear and manageable. It starts with state selection, guiding you to the location that best fits your business goals.

Once the state is chosen, GEOS takes care of entity setup. Whether it’s an LLC, a corporation, or a branch office, the filings are handled so your company is set up correctly. With your entity in place, GEOS moves to the EIN application, ensuring you have the number required for payroll and taxes without delays.

Throughout the expansion process, GEOS works with clients to set clear expectations at each stage, ensuring transparency and effective management. From there, the focus shifts to compliance planning, keeping your business aligned with state and industry rules. To round it out, GEOS provides banking introductions, helping you open the accounts needed to operate smoothly.

By connecting each step in order, GEOS gives you a straightforward path to expanding into the U.S. Reach out to learn more.

This article does not constitute legal advice.