Table of Contents
Why Form a Business in the U.S.?
Here are the four most common reasons Korean entrepreneurs form U.S. businesses.
Enter the U.S. Market
Selling directly to U.S. customers often requires a U.S. entity.
U.S. Payment Systems
Stripe, PayPal, and other U.S. payment services work best with a U.S. entity.
Attract Investment
Most U.S. VCs invest exclusively in U.S.-incorporated companies.
Global Credibility
A U.S. entity boosts trust with international partners and customers.
Korea vs U.S. — 3 Key Differences
- Federal vs State — You incorporate in a specific state, not 'the U.S.' as a whole.
- Simpler process — No court registration, notarization, or capital deposit required.
- Open to foreigners — No U.S. citizenship, green card, or visa needed.
Entity Types — LLC vs Corporation
The three most popular entity types compared, with Korean equivalents.
| Feature | LLC | C-Corp | S-Corp |
|---|---|---|---|
| Korean Equivalent | Ltd. Company | Stock Corp. | N/A |
| Limited Liability | O | O | O |
| Tax Structure | Pass-through | Double Taxation | Pass-through |
| Investment | Limited | Excellent | Limited |
| Operational Flexibility | High | Low | Low |
| Foreign Owners | O | O | X |
Which type should you choose?
The standard for U.S. VCs and angel investors
Solo / small business?
LLCs can be converted to C-Corps later. Starting with an LLC and converting when you need investment is a common strategy. See our LLC vs Corporation guide for a detailed comparison.
Why Does State Selection Matter?
Each of the 50 U.S. states has its own laws, taxes, and fees. Your state choice directly affects cost and privacy.
| Feature | Wyoming | Delaware | New Mexico | Florida | Texas |
|---|---|---|---|---|---|
| Filing Fee | $100 | $110 | $50 | $125 | $300 |
| Annual Report | $60 | $300 | None | $138.75 | None |
| State Corp Tax | None | None | None | 5.5% | Franchise Tax |
| State Income Tax | None | None (non-res) | None (non-res) | None | None |
| Privacy | High | Medium | High | Low | Medium |
| Processing Speed | Fast (1 day) | Avg (3-5 days) | Fast (1-2 days) | Avg (3-5 days) | Avg (2-5 days) |
| Best For | Small biz, privacy | Startups, investors | Lowest cost | FL residents | TX residents |
Fees above are state government fees only; service provider fees are separate. See our state comparison guide for details.
What You Need to Incorporate
The requirements are simpler than you might think. No U.S. citizenship or visa needed.
✅ What You Need
- Company Name — Your business name (include LLC or Inc.)
- Registered Agent — A service to receive legal documents in the U.S.
- U.S. Address — Can use a virtual address service
- Owner Info — Name, address, contact (Korean address OK)
- Passport Copy — For bank account and EIN application
❌ What You DON'T Need
- U.S. citizenship, green card, or visa
- Physical visit to the U.S.
- An existing Korean corporation
- SSN (Social Security Number)
- Minimum capital requirement
What Is a Registered Agent?
A person or service that receives official legal documents on behalf of your company from the state government or courts. Every U.S. entity must have a Registered Agent in the state of formation. Learn more about Registered Agents
5-Step Formation Process
The process is simpler than you might expect. Five steps from state selection to EIN.
Choose State
InstantConsider tax, cost, privacy
Choose Name
< 1 hourSearch availability on state site
Appoint Agent
InstantSelect a Registered Agent
File Documents
1 day - 2 weeksSubmit Articles of Organization
Get EIN
Instant - 8 weeksApply for federal tax ID
EIN Application Path
Apply online on the IRS website
Submit Form SS-4 by fax or mail
For Korean residents without an SSN, expect 6-10 weeks total from formation to EIN. For details on getting an EIN without an SSN, see our formation without SSN guide.
Post-Formation Checklist
Essential steps to complete after formation and obtaining your EIN.
Address Usage Mapping
📮 Registered Agent Address
- Receive official state documents
- Receive legal service of process
- Annual report notifications
🏢 Business Address
- Used for bank account opening
- Receive IRS tax documents
- Public-facing business address
- Receive business mail
Annual Tax Filing Is Mandatory
You must file a tax return with the IRS every year, even if you had no income. Failure to file results in penalties. Korea may also require reporting of foreign entities, so consult a tax professional (CPA).
Banking Options
| Option | U.S. Visit | Difficulty | Fees | Best For |
|---|---|---|---|---|
| Traditional Bank (Chase etc.) | Usually required | Hard | Monthly fees | If you can visit the U.S. |
| Online Banking (Mercury etc.) | Not needed | Medium | Mostly free | Startups, e-commerce |
| Fintech (Wise, Payoneer etc.) | Not needed | Easy | FX/transfer fees | Small biz, freelancers |
How Much Does It Cost?
Total cost = state filing fee + service fee + annual maintenance. Varies greatly by state.
Year-1 Total Cost Comparison (LLC filing fee + annual report)
* State government fees only. Service provider fees not included.
Annual Maintenance Cost Breakdown
| Item | Approx. Cost | Notes |
|---|---|---|
| Registered Agent | $49 ~ $299 / yr | Required |
| Annual Report | $0 ~ $300 / yr | Varies by state |
| Franchise Tax | $0 ~ $800+ / yr | Varies by state |
| Virtual Address | $100 ~ $300 / yr | Optional |
| Tax Filing (CPA) | $300 ~ $1,000+ / yr | Recommended |
| Bank Account Fee | $0 ~ $25 / mo | Varies by bank |
California has a low filing fee ($70) but charges a minimum $800/year Franchise Tax. Not recommended for small businesses.
Frequently Asked Questions
The most common questions about forming a U.S. business, answered.
Q1.Can I form a U.S. business remotely from Korea?
Yes, 100%. You don't need to visit the U.S. Formation documents and EIN can all be handled remotely. However, some bank accounts may require an in-person visit.
Q2.Do I need U.S. citizenship or a visa?
No. Both LLCs and C-Corps can be formed by foreigners. Only S-Corps are restricted to U.S. citizens/permanent residents.
Q3.How long does formation take?
Formation itself takes 1 day to 2 weeks depending on the state. EIN is instant with an SSN, or 4-8 weeks without. Total for Korean residents (no SSN): about 6-10 weeks.
Q4.Should I choose an LLC or C-Corp?
C-Corp if you plan to raise U.S. VC funding; LLC for everything else. LLCs can be converted to C-Corps later.
Q5.Is there a minimum capital requirement?
Most U.S. states have no minimum capital requirement. You can form an LLC with $0 in capital.
Q6.Can forming a U.S. business help me get a visa?
Formation alone doesn't guarantee a visa, but it can be a pathway to L-1 or E-2 visas. Consult an immigration lawyer for visa matters.
Q7.How do I close my business?
File dissolution documents with the state and a final tax return with the IRS. Never just abandon it — penalties will accumulate.
Q8.Can I do this without a service provider?
Possible, but you'll still need a Registered Agent, and mistakes can be costly to fix. The EIN application process without an SSN can be especially challenging from abroad.
For deeper topics like taxes, accounting, payment integrations, and compliance, continue to the Intermediate Guide. We recommend fully understanding this beginner content first.