How to Register a Business in the USA in 2025: A Step-by-Step Guide Based on Current Government Policies

Starting a business in the United States remains an attractive option for entrepreneurs worldwide due to the country’s robust legal framework, strong intellectual property protections, and expansive market. However, registering a business in 2025 requires a clear understanding of updated federal and state policies, especially in areas like tax compliance, beneficial ownership disclosure, and digital verification.

This guide provides a practical, policy-informed pathway to help both U.S.-based and foreign entrepreneurs register their businesses effectively.

---

1. Choose the Right Business Structure

The first and most important step is choosing the legal structure that fits your goals, tax preferences, and liability tolerance. The most common structures include:

• Sole Proprietorship: Easy setup, but offers no liability protection.
• Partnership (General or Limited): Suitable for two or more owners, but requires a partnership agreement.
• Limited Liability Company (LLC): Offers liability protection and flexible tax treatment.
• Corporation (C-Corp or S-Corp): Suitable for large ventures or investors; more complex tax and compliance rules.

✅ Update for 2025: Due to increased scrutiny around shell companies, the Corporate Transparency Act (CTA) now requires most LLCs and corporations to report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) via the BOI E-Filing System.

---

2. Choose a State to Register In

While you can register in any U.S. state, your choice impacts taxation, filing fees, and reporting requirements. Popular choices include:

• Delaware: Business-friendly laws and privacy.
• Wyoming: Low fees and no corporate income tax.
• Florida or Texas: No state income tax, popular for small businesses.

🌍 Note for Foreign Entrepreneurs: You can register a U.S. business without U.S. citizenship. However, you’ll need a registered agent, a U.S. mailing address, and may face additional banking and tax ID requirements.

---

3. Register Your Business Name

Ensure your desired business name is unique and available:

• Conduct a business name search on your state’s Secretary of State website.
• Register a DBA (“Doing Business As”) name if you’re trading under a different brand.

---

4. File Formation Documents

This varies by state and structure:

• LLC: File Articles of Organization.
• Corporation: File Articles of Incorporation.

You’ll typically need to provide:

• Business name and address
• Registered agent’s name and address
• Purpose of business
• Name(s) of owner(s), member(s), or director(s)

💡 Digital Filing Tip: Many states now require online-only submissions. States like California and New York use automated verification tools to speed up approvals.

---

5. Apply for an Employer Identification Number (EIN)

An EIN is your business’s federal tax ID, issued by the Internal Revenue Service (IRS). You’ll need it to:

• Open a business bank account
• Hire employees
• File federal and state taxes

💡 Apply for free on the IRS website. Non-U.S. residents can apply using Form SS-4 via fax or mail.

---

6. Comply with Federal and State Licensing

Depending on your business type and location, you may need:

• Federal licenses (e.g., alcohol, firearms, aviation, import/export)
• State licenses (e.g., real estate, medical, construction)
• Local permits (e.g., signage, zoning, health)

⚠️ In 2025, compliance enforcement has increased across industries such as crypto, e-commerce, and import/export.

---

7. File Beneficial Ownership Information (BOI)

As of January 1, 2024, the CTA requires most small businesses to report:

• Full legal name
• Date of birth
• Current residential or business address
• Government-issued ID (passport or driver’s license)

🛡️ This aims to prevent money laundering and corporate fraud. File your report via FinCEN’s BOI portal.

---

8. Open a Business Bank Account

U.S. business banking requires:

• EIN
• Business registration documents
• Owner’s identification
• U.S. business address

Some fintech firms (e.g., Mercury, Wise) offer easier onboarding for foreign founders.

---

9. Understand Your Tax Obligations

Federal tax requirements vary by structure:

• LLCs: Pass-through taxation
• C-Corps: Double taxation (corporate and shareholder level)
• S-Corps: Pass-through with restrictions

Also check:

• State income tax
• Sales tax permits
• Quarterly estimated tax payments

💡 In 2025, the IRS continues increasing audits on small businesses using AI-powered screening, especially in sectors like crypto, freelance platforms, and digital goods.

---

10. Maintain Compliance & Annual Filings

You must file:

• Annual or biennial reports with your state
• Federal income tax returns
• State franchise or excise taxes (where applicable)

Failure to comply can lead to penalties or dissolution.

---

Conclusion

Registering a business in the U.S. is both an opportunity and a responsibility. With 2025 policies emphasizing transparency, compliance, and digital processing, entrepreneurs must stay informed and proactive. Whether you’re a local founder or a foreign investor, aligning with current legal frameworks ensures your venture starts strong and scales confidently.