Start a Business in the USA in 2026:
Start a Business in the USA in 2026: The Step‑by‑Step Playbook (for Citizens, Green Card Holders, and Global Founders)
A note from Feel Worldwide Foundation
Starting a business in the United States is both simpler and more structured than most people expect. This playbook walks you from idea to launch to compliance, with clear pathways whether you are a U.S. citizen, a permanent resident, or a non‑U.S. founder planning to operate from abroad or enter the country on a qualifying status. It is written for 2026 realities and designed to be your single, end‑to‑end guide you can keep open while you build.
This is comprehensive education, not legal or tax advice. Laws, fees, and processing times change; when you reach a decision point, verify it with the official source linked in each step on our website or with a licensed professional.
What “starting a business” actually means in the U.S.
When people say they started a U.S. business, they usually mean they chose a legal structure, registered that structure with a state, obtained federal and state tax IDs, opened a bank account, protected their brand, and set up the minimum compliance systems that keep the company in good standing. Revenue, hiring, and fundraising come next, but formation and compliance are the foundation that unlocks everything else.
Who can start a U.S. business in 2026
If you are a U.S. citizen or permanent resident, you can form and own any common entity type nationwide. If you are a non‑U.S. person living abroad, you can generally own a U.S. company remotely, obtain a federal tax ID, run U.S. operations with U.S. customers, and pay U.S. taxes that apply. If you plan to live or work in the U.S., you need the right immigration pathway; this guide explains practical options and timing so your company and immigration strategy reinforce each other rather than collide.
The strategy you decide first
Great founders make two early choices. First, the market and model that prove demand quickly and legally. Second, the entity and state that minimize tax exposure and compliance overhead without hurting fundraising, grants, or contracting. You can change later, but early clarity saves time and cash.
Choosing your legal structure in plain language
Sole proprietorships are simple and automatic when one person starts selling under their own name, but they provide no liability shield. Single‑member LLCs are the default for most small and online businesses because they create a liability wall while keeping taxes simple; by default they are disregarded for federal income tax, though you can elect corporate status later. Multi‑member LLCs act like partnerships with a liability shield and a flexible operating agreement; they suit small teams focused on profits and distributions. C‑corporations are best for companies that will raise venture capital, offer stock options, or pursue rapid scale; Delaware is common for governance predictability and investor familiarity. S‑corporations can reduce self‑employment taxes for profitable, owner‑operated businesses that meet eligibility rules, but they are not available to non‑resident alien shareholders and have shareholder and class‑of‑stock limits. Nonprofit corporations serve charitable and educational missions and follow their own formation and compliance path; if you intend to solicit donations or grants, form a nonprofit rather than mixing a for‑profit with charitable activities.
Picking the right state in 2026
Your “home state” where you physically operate is often the simplest choice because it avoids foreign registration and duplicative fees. If you will raise venture capital, plan a multi‑state footprint, or need court‑tested case law, Delaware remains a strong default. If you operate locally in another state, forming there and staying local keeps costs down. If you form in Delaware but operate elsewhere, you will register as a foreign entity in the operating state and pay fees in both.
Naming your company without headaches
Choose a name that is distinguishable on the records of your formation state. Check the state’s business registry, the availability of your domain, your social handles, and the federal trademark database to avoid conflicts. Consider a consumer‑facing brand name that you can trademark and a slightly different legal name if needed for state availability.
Formation, step by step
File your articles or certificate with the state for your chosen entity. Appoint a registered agent with an in‑state address. Draft your internal documents before you transact money: an operating agreement for an LLC or bylaws, incorporator and board consents, and a stock or membership ledger for a corporation. Issue founder equity on day one with proper vesting to prevent cap‑table regrets. Adopt an intellectual property assignment so ideas, code, designs, and content belong to the company, not individuals.
Federal and state tax identity
Apply for an Employer Identification Number once the entity exists. You will use it to open bank accounts, onboard payment processors, remit payroll, file returns, and receive 1099s. If you sell taxable goods or certain services, register for state and local sales tax where you have nexus, which can be created by physical presence, employees, inventory, or economic thresholds tied to sales volume. If you will hire employees, register for state employer accounts for withholding and unemployment insurance before you run payroll.
Banking and payments in 2026
Open a business checking account that matches the legal name of your company. Banks will verify your formation documents, EIN, ownership, and responsible party. For non‑U.S. founders, some banks and fintechs support remote onboarding, but many still require an in‑person visit or a U.S. address. Connect your bank to modern payment rails so customers can pay the way they prefer, including cards, ACH, digital wallets, and cross‑border payments if relevant. Activate account‑level controls, dual approval for wires, and role‑based access to reduce fraud risk.
Licenses, permits, and zoning
Nearly every business needs at least a general business license at the city or county level. Regulated industries add specialized approvals such as professional licenses, seller’s permits, food handling certifications, home‑based business permits, and signage approvals. Check both your state and local portals during planning, not after launch. Online‑only businesses still need the right registrations where customers or employees are located.
Sales tax made understandable
Sales tax is imposed by states and, in many places, by local jurisdictions. You collect it from customers and remit it on a schedule set by your registration. Many digital goods and services are taxable in some states and not in others. If you ship from one state to customers in many states, you may need multi‑state registrations once you pass economic thresholds. Use a modern sales tax engine in your checkout, reconcile monthly, and calendar remittance deadlines so you never miss a period.
Hiring, payroll, and contractors
Classify people correctly. Employees require payroll withholding, unemployment insurance, and workers’ compensation coverage where mandated. Contractors receive Forms 1099 if they meet the tests and thresholds, and you do not withhold taxes for them. Use e‑verify only when required or when your contracts demand it. Adopt a written handbook early, even for a small team, to establish policies on confidentiality, harassment, leave, timekeeping, and remote work.
Immigration pathways for founders and key staff
If you are a non‑U.S. founder who will live and work in the United States, align your immigration plan with your business plan. E‑2 status suits citizens of treaty countries who make a substantial investment and control the enterprise. L‑1 status fits founders or executives of a foreign company expanding to a U.S. affiliate, allowing you to transfer to open and run the U.S. office. International Entrepreneur Parole can be viable for high‑potential startups able to demonstrate significant public benefit through qualified investment or government grants. Other routes, such as O‑1 for extraordinary ability, can also fit founders in certain fields. Timelines, evidentiary standards, and work authorization for family vary by pathway; plan filings around product and fundraising milestones.
Brand, intellectual property, and creative assets
Register your trademark to secure nationwide rights in your brand for your goods or services. File before you go big on marketing to prevent avoidable rebrands. If you create patentable inventions, coordinate with counsel before you publish or sell to protect patent rights. Copyright protections arise automatically on creation, and registration improves your enforcement options. Use assignment agreements so the company owns the work contractors and employees create.
Websites, privacy, accessibility, and advertising standards
Treat your website and app as parts of your legal footprint. Publish a clear privacy policy and terms of use. If you target or serve California residents above applicable thresholds, implement California consumer privacy rights including notices at collection and mechanisms to honor opt‑out signals. Build accessibility into your site and content so people with disabilities can access your services, and document your efforts. In all marketing, claims must be truthful, not misleading, and substantiated. Disclose material connections in endorsements and influencers, and label native ads so people can recognize advertising.
Accounting, taxes, and the compliance calendar
Adopt an accounting system on day one and separate business and personal finances absolutely. Choose accrual accounting if you will raise capital or manage inventory. Calendar your federal, state, and local filing deadlines, including estimated taxes for profitable pass‑through owners, income and franchise taxes for corporations and LLCs taxed as corporations, employment returns, information returns, and any annual report your state requires to keep your entity in good standing. If you own a multi‑member LLC or a corporation, issue year‑end K‑1s or W‑2s as appropriate and deliver 1099s to eligible vendors and contractors on time. If your company is required to disclose information about its owners under federal transparency rules, add those snapshots to your recurring checklist and update promptly when ownership or control changes.
Insurance that actually protects you
Start with general liability and professional liability if you provide services. Add product liability if you sell physical or regulated goods and cyber liability if you process payments or store personal data. If you have employees, carry workers’ compensation where required and employment practices liability when you start hiring at scale. Review coverage annually as your revenue, headcount, and risk profile change.
Funding your company in smart order
Bootstrap with customer revenue if possible to maintain control. Layer grants, microloans, and community lenders to validate traction. Use revenue‑based financing for working capital once you see repeatable demand. Reserve equity financing for growth you cannot reach any other way and build a clean data room before you pitch. If you are a mission‑driven venture, explore fiscal sponsorships and hybrid structures rather than mixing donations with a for‑profit entity. If you are a nonprofit, follow the separate fundraising and compliance pathway and segregate funds religiously.
The first ninety days after launch
Confirm registrations and agency accounts are active, connect payroll, invoicing, and bookkeeping, and reconcile your first month at the transaction level. Run a mock tax close after your first quarter so nothing surprises you at year end. Map your customer journey and instrument analytics, then run one persuasive campaign that aligns with your brand, your approvals, and your budget. Publish your privacy, accessibility, and support commitments so customers trust you from day one.
The one‑page operating system you can actually follow
Document how you accept and refund payments, how you sign contracts, how you onboard staff and contractors, how you push code or content live, how you keep records, and how you respond to an incident. Keep this one page updated monthly. When something goes wrong, your future self will be grateful.
Special guidance for non‑U.S. founders operating from abroad
You can form a U.S. LLC or C‑corporation, obtain a federal tax ID, open a U.S. bank account with the right documentation, and sell to U.S. customers without being physically present. You will generally need a responsible party with a taxpayer identification number for the EIN, a U.S. mailing address for agencies and banks, and a registered agent in your formation state. Pay particular attention to sales tax rules for cross‑border e‑commerce, withholding obligations on U.S.‑source income, and treaties that may affect taxation in your home country. If you later relocate, plan corporate changes and immigration filings together to preserve continuity.
When to form a nonprofit instead
If your primary purpose is charitable, educational, scientific, or religious, and you plan to solicit donations, seek grants, or provide public benefit without private inurement, a nonprofit corporation is usually the proper vehicle. You will draft charitable‑purpose governing documents, apply for federal tax‑exempt recognition, register for state charitable solicitations where required, and follow public charity compliance rules. Do not mix donations into a for‑profit account or program without a compliant structure.
A founder’s code for staying compliant without drowning in paperwork
Stay organized with a simple calendar and a single source of truth for your registrations, permits, and deadlines. Keep minutes for major decisions. Centralize contracts and intellectual property assignments. Reconcile your books monthly and close your financials promptly. Respond to every government notice. When in doubt, ask a professional before you act.
Your next action in the next fifteen minutes
Decide your structure, pick your formation state, draft your internal documents, and obtain your EIN. Open your bank account, register for sales tax if applicable, and connect bookkeeping. File for your trademark before your first big marketing push. If you are a non‑U.S. founder, pick the appropriate immigration or remote‑ownership path and build your timeline backward from that milestone.
How Feel Worldwide Foundation can help
We provide entrepreneur education, founder clinics, and referral pathways to vetted formation, legal, tax, banking, immigration, and grant resources. We also support creative campaigning and transparent fundraising for mission‑driven ventures through our nonprofit programs. Visit our website for contact details and to access templates that correspond to each step in this guide.
Remember
America rewards builders who move thoughtfully. If you combine a real customer problem, a clean formation, and consistent compliance, you will be free to focus on the only things that truly matter: making something people love and telling your story so they can find you.
