Entity, state, filing, EIN, banking, and the compliance nobody warns you about. Written for founders anywhere in the world, including non-residents, with no marketing spin.
Starting a US business takes six steps: choose an entity (usually an LLC), choose a state (home state for US residents; Wyoming or Delaware for non-residents), file the formation yourself or through a service, get an EIN, open banking and payments, then keep up with annual compliance. Non-residents can do all of it remotely without a US visit or SSN.
Most solo founders and small teams start with an LLC: simple, flexible, minimal formalities. Choose a Delaware C-Corp only if you plan to raise venture capital, because investors expect it. You can convert later, so do not over-engineer this decision on day one.
If you live in the US, form in your home state; forming elsewhere usually just adds a second state's fees. Non-residents typically pick Wyoming for low fees and privacy, or Delaware if raising from VCs. Watch the recurring costs: some states charge a flat annual franchise tax even at zero revenue.
You can file directly with the state for just the state fee, and that is a fine path if you have a US address and know the paperwork. Formation services earn their fee for non-residents and busy founders by handling the filing, registered agent, EIN, and compliance calendar in one place, and by getting it right the first time.
The EIN is your company's federal tax ID; you need it for banking, Stripe, and taxes. US residents with an SSN get one online in minutes. Non-residents without an SSN must apply by fax or mail using Form SS-4, which takes weeks, and this is the step formation services most reliably save you pain on.
With formation documents and an EIN you can apply to fintech banks like Mercury or Relay and connect Stripe. Approval is not guaranteed: banks review your business model, and high-risk industries face extra scrutiny. Have a real website and a clear description of what you sell before you apply.
Formation is not the finish line. Expect an annual state report or franchise tax, registered agent renewal, and federal filings; foreign-owned single-member LLCs generally must file Form 5472 with a pro-forma 1120 each year, with steep penalties for missing it. Put the dates in a calendar or pay a service to own them.
Two services we recommend cover filing, registered agent, EIN, and banking guidance in one flow, including for non-residents: Firstbase for a lean, banking-ready setup, or Doola if you want bookkeeping and tax filing bundled in year-round.
Undecided? Read the head-to-head comparison first.
You only need a company when you are ready to take money. If you are still choosing what to build, start with a vetted idea and its playbook.