The United States of America is one of the world’s strongest economies, combining a highly developed IT sector with favorable conditions for technology businesses. According to research data, approximately 400,000 applications to establish new companies are filed in the United States each month, demonstrating a high level of business activity and the country’s attractiveness to entrepreneurs.
Thanks to its vast market, strong startup ecosystem, access to venture capital, and advanced digital infrastructure, the country holds a leading global position in terms of ease of doing business. In this article, we will examine the key advantages and specific aspects of registering an IT company in the United States that founders should consider.
Choosing a state
The first step in establishing an IT company in the United States is choosing the state in which the registration will take place. Each state has its own taxation rules, reporting requirements, and business conditions. If a company does not have a physical presence such as an office or employees the choice can be based on the state’s tax and other advantages.
If you conduct business outside the United States, we can recommend the following states:
- Delaware – the most popular state among entrepreneurs, with over 2 million companies registered across the U.S. It is attractive due to its well-established and predictable court system and favorable tax regime, as companies that do not conduct business within the state are exempt from state corporate income tax and sales tax.
- Wyoming – the most affordable and one of the most digital-friendly states for doing business. It has no corporate income tax, and company owners’ information is not publicly disclosed, ensuring a high level of privacy.
- Florida – popular among entrepreneurs who plan to live or work in Miami. The state offers a favorable business climate, well-developed infrastructure, and no standard state corporate income tax.
- Texas – one of the leading economic centers in the United States. In 2024, the state was recognized as the best place to do business, and more than 1,300 investment projects are implemented there annually, making it attractive to both startups and large corporations.
- New York – the financial center of the United States, attracting companies in finance, media, and technology. Despite relatively high taxes, the state provides access to investment, partnerships, and a world-class professional community.
- California – the heart of the U.S. technology industry and the birthplace of many global startups. Despite high taxes, California remains attractive due to the developed Silicon Valley ecosystem, the presence of venture capital funds, and a highly skilled workforce.
Choosing the business structure
Another equally important step is determining the legal form of the business. It defines the company’s structure, the founders’ responsibilities, and the taxation system. In the United States, the following business structures can be chosen:
- Limited Liability Company (LLC) – best suited for small businesses in the U.S. that do not plan to raise investment. For example, you can establish a small IT company for mobile application development, using an LLC to simplify business operations and minimize tax risks.
- C-Corporation (C-Corp) – suitable for medium and large businesses or startups that plan to attract investment, issue shares to employees, and scale. For example, you can create a SaaS platform for corporate clients or a fintech service, using a C-Corp to raise venture capital and protect the founders’ personal assets.
- Joint Venture (JV) – a temporary partnership between companies or investors formed to implement a specific project. It is used to combine resources and expertise when launching a new product or service.
According to statistics, out of more than 37.9 million registered businesses, 57% are LLCs and 4.8% are corporations. The remaining percentage is distributed among other forms of ownership, primarily sole proprietorships and partnerships. However, although these may offer more favorable tax rates in certain states, they usually have significant drawbacks, for example, owners are liable with all their personal assets (rather than being limited to the company’s capital), and some forms are generally available only to U.S. tax residents.
Identification numbers
For conducting business and fulfilling tax obligations in the United States, there are three main tax identification numbers:
- Social Security Number (SSN) – a unique nine-digit number used for taxation, employment, opening bank accounts, obtaining loans, and receiving government benefits. An SSN can be obtained only by U.S. citizens and foreign nationals who are authorized to work or study. The number can be obtained online, directly through the Social Security Administration, or by mail.
- Individual Taxpayer Identification Number (ITIN) – a tax identification number for individuals who are not eligible for an SSN but have tax obligations in the United States. An ITIN is required for filing tax returns and claiming tax benefits or refunds. It can be obtained by mail, through a certified acceptance agent, or at designated IRS centers, including through applications filed from abroad.
- Employer Identification Number (EIN) – a federal tax identification number for companies, LLCs, corporations, partnerships, and other entities. An EIN is used for filing tax returns, paying taxes, conducting business operations, and opening bank accounts. An EIN can be obtained online, by mail, by fax, or by phone.
Tax system
The USA tax system differs significantly from that of most other countries. Taxes are paid at the federal, state, and local levels, with each state having the authority to set its own rates and tax incentives. In addition, depending on the type of company, different taxation models may be chosen. For example, an LLC may elect to be taxed as a corporation or, by default, use a “pass-through” structure, where profits pass through to the owners. A C-Corporation, on the other hand, creates a separate legal and tax entity, allowing it to attract investors and issue shares to employees.
In the United States, there are two main approaches to taxing company income:
- Founder (pass-through) taxation – applied to LLCs that do not elect corporate tax status. In this case, taxes are generally paid directly by the founders at individual income tax rates. Federal rates are calculated based on the owners’ tax residency: for USA citizens, a progressive scale from 10% to 37% applies; for non-residents, a flat rate of 30% applies, which may be reduced under double taxation treaties.
- Corporate taxation – applies to corporations and to LLCs that elect to be taxed as corporations. The federal corporate tax rate is 21%, while state-level rates vary. For example, in Delaware the rate is 8.7%, whereas in Wyoming it is 0%.
In addition to corporate income tax, companies may be required to pay sales tax if they have a physical or economic presence in a state. For example, Delaware’s sales tax rate is always 0%. If sales are made into another state, economic nexus thresholds apply; for instance, in Wyoming the threshold is USD 100,000. However, once these thresholds are exceeded, a company is required to collect and remit sales tax even without a physical presence in the state.
Separately, companies are required to pay a franchise tax to confirm their right to conduct business in the selected state. The amount of the tax and the method of calculation vary depending on the state and the chosen business structure. For example, in Delaware, the franchise tax for an LLC is USD 300, while for a C-Corporation it is calculated based on the number of authorized shares.
Conclusion
The USA remains one of the world’s leading centers of technological entrepreneurship. In 2025, global venture capital investments amounted to approximately USD 189.9 billion, representing a 25% increase compared to the previous year, with more than 70% of global funding concentrated in the U.S. market.
In summary, many entrepreneurs from around the world choose the United States to launch startups, grow their businesses, and attract investment, taking into account numerous advantages, including:
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no minimum capital requirements, with the ability to set a minimal amount of USD 100-1,000;
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online registration, remote business management, and a wide range of supporting services;
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the ability to automate most business processes and access leading payment systems and banking institutions;
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a large, solvent market with a population of more than 330 million people;
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the availability of various financial support programs and grants, including federal and local initiatives;
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reduced taxation for activities related to software development and for corporate profits derived from foreign clients;
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a flexible ownership structure and the ability to maintain internal records of investments and shares.
Thus, the USA indeed offers many advantages, but it also has a significant number of specific features. On the one hand, its seemingly transparent tax system is familiar to the local market, yet it may not always be fully clear to those accustomed to doing business in the EU, the UK, or Ukraine.
The variety of company types and the large number of states certainly allow businesses to choose the most suitable option. However, we recommend approaching this choice strategically, with a clear understanding from the outset of the specifics of the chosen state, tax aspects, requirements for non-residents, substance and nexus rules, CFC regulations, and the company’s future business goals at least for the next two to three years.
