· Corporate & Business Law · 1 min read
How To Establish a Sole Proprietorship? Step by Step
In this article, you will find the basic steps for setting up a company in the USA and the points to consider in a simple and understandable way. .
How to Set Up a Sole Proprietorship in the United States
Forming a limited liability company (LLC) in the USA is a powerful step for entrepreneurs looking to expand into global markets. A company established in the USA helps you receive international payments more easily, conduct trade, and build a reliable business profile. What’s more, the entire setup process can be done remotely.
In this article, you will find the basic steps for setting up a company in the USA and the points to consider in a simple and understandable way.
1. Advantages of Setting Up a Company in the USA
Setting up an LLC in the USA offers entrepreneurs many advantages:
- Easy access to the global market
- A more reliable business identity
- Ability to invoice international customers
- Obtaining a US business address and tax ID number
- High acceptance rates for online commerce and service sales
For these reasons, entrepreneurs prefer to establish US companies for e-commerce, software, consulting, and other digital services.
2. Before Starting the Company Formation Process
Before establishing a company in the United States, the following issues should be clarified:
✔ Which state to choose?
Popular states are preferred due to low costs, fast processing, and the conveniences offered to entrepreneurs.
✔ Choosing the type of company
The most suitable structure for international entrepreneurs is usually:
• Single-Member LLC
This structure is both flexible and simple to set up.
3. Steps to Form a Sole Proprietorship in the United States
Step 1: State Selection and Application
The first step is to select the appropriate state and submit the company formation application.
The application usually requires the following information:
• Company name
• Owner information
• Email address
• Personal address (This can be a Turkish address)
Once the application is complete, your company will be officially opened within a few days.
Step 2: Obtaining Company Formation Documents
After the formation is approved, you will be provided with the following documents:
• Certificate of formation
• LLC registration documents
• Company agreement
These documents are required when opening a bank account in the US and for commercial transactions.
4. Obtaining an EIN (Tax Number)
An EIN (Employer Identification Number) is your company’s tax ID in the US.
It is required to open a US bank account, use payment infrastructures, and file tax returns.
Steps to Obtain an EIN:
1. Fill out the SS-4 form
2. Add company and personal information
3. Sign the form
4. Fax it to the US Internal Revenue Service
The approval process can take several weeks. Once you receive your EIN letter, your company is fully ready for official business transactions.
5. Opening a U.S. Business Bank Account
After obtaining an EIN, you can open a bank account in your business’s name.
The following information is usually required:
• Company name
• EIN number
• U.S. business address
• Identity verification documents
Receiving payments from international customers is much easier with a U.S. business account.
6. Annual Company Obligations
LLCs established in the US have certain routine obligations:
• Annual reporting
• Tax returns
-Address and registration updates
Keeping track of these obligations is important for the company to remain active.
7. Costs of Setting Up a Sole Proprietorship in the US
Average first-year costs:
Step Average Fee
Company Formation $100–200 USD
Obtaining an EIN Free
Opening a Bank Account Free
Annual State Report $60–70 USD
*The total cost is quite affordable.
Why is it Important to Get Professional Legal Support?
Starting a company, preparing documents, tax processes, and annual obligations in the United States can be complicated, especially for entrepreneurs applying from abroad. Expert support is crucial to ensure that procedures are carried out correctly, tax numbers are obtained without any issues, and to avoid penalties in the future.
Capitol Law Partners provides comprehensive legal consulting to entrepreneurs in Washington D.C., Chicago, and other states, helping you professionally manage:
• Company formation processes
• Tax compliance
• Documentation
• Annual reporting obligations
• All legal steps required when starting a business in the US
To make a secure, accurate, and solid start in the U.S., you can contact Capitol Law Partners and receive the support of an expert legal team while growing your international business.
📞 Contact us today to schedule a consultation with an experienced immigration lawyer.
🟢Whatsapp +1 (202) 440-2272
