How to Form Your Business in the United States

Independent guides and side-by-side comparisons to help you start an LLC or corporation: choose the right entity and state, understand every cost, and pick a formation service that fits.

📋 Step-by-Step Guidance 🔒 Free to Use

How It Works

Forming a business in the United States is straightforward. Here’s what the process looks like from start to finish.

1

Choose Your Entity & State

Decide between an LLC, C-Corp, or S-Corp. Most businesses form in their home state. Delaware is the standard for VC-backed startups; Wyoming for privacy and low fees.

2

File Your Formation Documents

Submit Articles of Organization (LLC) or Articles of Incorporation (Corp) with your state’s Secretary of State. A formation service can file for you and add an EIN, an operating agreement and a registered agent.

3

Launch & Stay Compliant

Open a business bank account, set up bookkeeping, and start operating. Then stay on top of annual reports, registered agent renewals, and federal and state tax filings; our compliance guide explains every deadline.

Which Business Entity Is Right for You?

Each structure offers different advantages for liability protection, taxation, and growth.

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LLC Formation

The most popular choice for small businesses in the United States. Flexible ownership, pass-through taxation, minimal compliance. Ideal for freelancers, agencies, and partnerships.

  • Personal asset protection
  • No ownership restrictions
  • Pass-through or corporate taxation
  • Simple annual compliance
Best for: Most small businesses, side hustles, consulting firms, rental properties

LLC Formation Guide →

🏛️

C-Corporation

Built for venture capital, stock options, and exits. The standard structure VCs expect, and the only one that can qualify for the QSBS capital gains exclusion.

  • Issue common & preferred stock
  • Attract investors with SAFEs
  • QSBS capital gains exclusion
  • 21% flat corporate tax rate
Best for: VC-backed startups, tech companies, businesses planning IPO or acquisition

C-Corp Guide →

💰

S-Corporation

A tax election that can save profitable businesses thousands of dollars a year in self-employment taxes. Split income into a reasonable salary and distributions.

  • SE tax savings at $60K+ profit
  • Pass-through taxation
  • Salary + distribution split
  • Corporate liability protection
Best for: Profitable businesses earning $60K+ net, consultants, professional practices

S-Corp Guide →

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Not sure? Read our detailed comparisons: LLC vs. S-Corp · LLC vs. C-Corp · C-Corp vs. S-Corp, or take the entity quiz.

Ready to Make It Official?

Choose your entity type and state, then compare formation services side by side. Our 60-second finder points you to the providers that fit your budget and priorities.

Free • Independent • Prices checked October 2026

Form a Business in Any U.S. State

You can form a company in any of the 50 states. Here are the most popular states for business formation and their filing fees.

🗽 Delaware

The #1 state for C-Corps. Court of Chancery, business-friendly laws. The standard for VC-backed startups.

LLC: $110 · Corp: $109

🤠 Texas

No state income tax. Fast filing (2–3 days). One of the most popular states for LLCs and small businesses.

LLC: $300 · Corp: $300

🏔️ Wyoming

No state income tax, low fees, strong privacy. Ideal for online businesses and holding companies.

LLC: $100 · Corp: $100

🌴 Florida

No state income tax, large business community, fast processing. Growing hub for tech and e-commerce.

LLC: $125 · Corp: $70

🌉 California

Largest state economy, home to Silicon Valley. Note: $800 annual franchise tax applies to all entities.

LLC: $70 · Corp: $100

🗽 New York

Major business hub. LLC publication requirement adds $200–$1,500 depending on county.

LLC: $200 · Corp: $125

🏛️ Nevada

No state income tax, no franchise tax, strong charging order protections for LLC members.

LLC: $425 · Corp: $725 (including the required initial list and business license)

🌲 Washington

No personal income tax. Growing tech hub. Business & Occupation tax applies instead.

LLC: $200 · Corp: $180

State filing fees are approximate and may change. Most businesses should form in the state where they operate. See all 50 state guides.

Frequently Asked Questions

Common questions about forming a business in the United States.

What is BusinessFormations.com?

BusinessFormations.com is an independent guide to starting a business in the United States. We explain entity types, state requirements and ongoing compliance, and we compare formation services such as Northwest, ZenBusiness, Bizee and LegalZoom so you can choose one with confidence. We don’t file documents ourselves.

How much does it cost to form a business?

Formation services charge from $0 to about $300, plus your state’s filing fee, which typically ranges from about $35 to $500. Don’t forget the registered agent: some providers include the first year, others charge $199–$249 a year. See current prices.

LLC or Corporation — which should I choose?

An LLC is the best fit for most small businesses: flexible, simple, and tax-efficient. A C-Corp is essential if you’re raising venture capital or planning an IPO. An S-Corp election can save profitable businesses thousands of dollars a year in self-employment taxes. Compare LLC vs. S-Corp or LLC vs. C-Corp.

What state should I form my business in?

Most businesses should form in their home state. Delaware is the standard for VC-backed C-Corps due to its Court of Chancery and investor-friendly laws. Wyoming offers the lowest fees and strongest privacy protections. Forming out-of-state means registering as a foreign entity in your home state — additional cost and compliance.

How long does formation take?

The online process takes under 10 minutes. After filing, state approval typically takes 1–7 business days depending on the state. Rush and same-day options are available in most states for an additional fee.

Is a registered agent required?

Yes. Every LLC and corporation in the United States must maintain a registered agent with a physical address in the state of formation. A registered agent receives legal documents and state correspondence on behalf of your business.

Can non-U.S. residents form a business in America?

Yes. Foreign nationals can form an LLC or corporation in any U.S. state without a visa or residency. Delaware and Wyoming are the most popular choices for non-residents. You will need a registered agent with a physical address in your state of formation; most formation services include or sell one.

What happens after formation?

Once the state approves your filing, you (or your formation service) receive the approved formation documents. Next steps include getting an EIN, signing an operating agreement or bylaws, opening a business bank account, setting up bookkeeping and, depending on your state, filing an initial report. Our formation checklist covers every step.

About BusinessFormations.com

BusinessFormations.com is an independent resource for entrepreneurs starting LLCs, corporations and nonprofits in the United States. We publish plain-language guides on entity types, state requirements and costs, and we compare the main formation services, so whether you’re forming your first LLC or incorporating your third startup, you can make an informed choice.

Every year, millions of new businesses are formed in the United States. Whether you’re a first-time founder starting a single-member LLC, a tech entrepreneur incorporating a Delaware C-Corp to raise venture capital, or a profitable consultant electing S-Corp tax status to reduce self-employment taxes, choosing the right business structure is one of the most important early decisions you’ll make.

How U.S. Business Formation Works

In the United States, business entities are formed at the state level by filing formation documents — Articles of Organization for LLCs or Articles of Incorporation for corporations — with the Secretary of State (or equivalent agency) in your chosen state. Each state has its own filing fees, processing times, and ongoing compliance requirements such as annual reports and franchise taxes.

After formation, you’ll obtain a federal Employer Identification Number (EIN) from the IRS, which serves as your business’s tax ID. This is required for opening a business bank account, filing taxes, and hiring employees. A typical formation service package includes the state filing and, depending on the plan, EIN registration, an operating agreement or bylaws, and a registered agent.

Why Ongoing Compliance Matters

Formation is just the first step. Every state requires ongoing filings (annual reports, registered agent renewals and franchise taxes) to keep your business in good standing. A missed deadline can result in penalties, late fees, or even administrative dissolution of your entity. Our compliance monitoring guide explains which deadlines apply and how to track them.

We publish comprehensive guides on choosing the right entity type (LLC formation, C-Corp incorporation, and S-Corp election) along with detailed comparison guides: LLC vs. S-Corp, LLC vs. C-Corp, and C-Corp vs. S-Corp. We also cover state-specific requirements, cost breakdowns, and a formation checklist. We may earn a commission when you choose a provider through our links; see our affiliate disclosure.

Start Your Business Today

Compare formation services side by side, then file with the one that fits your budget and needs.

Free • Independent • Prices checked October 2026

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