With Mexico and Canada as its neighbors, the US is a global technological, economic, and military powerhouse. The nation’s economy is the world’s largest in terms of GDP. According to recent OECD forecasts, the United States is expected to see economic growth of 1.6% in 2025. The country continues to attract substantial foreign investment across various sectors, particularly in technology, renewable energy, and healthcare. In addition, the US also has considerable natural resources. It is also the world’s leading producer of natural gas and oil, making it an attractive destination for new market entry.
Unlock growth opportunities in the US with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating the United States’ often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in the US, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Scale confidently and compliantly with our experts and stay in compliance with US employment and tax laws.
C corporations are the most common structure for foreign companies with an unlimited number of investors, without personal liability. They are recognized as a separate taxpaying entity from their owners. A corporation’s profits are taxed to the corporation when earned and then to its shareholders when distributed as dividends, resulting in double taxation.
S corporation can have up to 100 investors who must be US citizens/residents, and they offer limited liability protection to shareholders like C Corps.
LLC is a flexible structure combining corporate and partnership benefits. It can have an unlimited number of investors who do not have any personal liability. Profits and losses can be passed through to the members’ income without facing corporate taxes.
For a C Corporation, at least 1 director is required. It is also possible for some states to require statutory officers, such as a president, chief financial officer, treasurer, and secretary, and some states may require a Board chair position, where the corporation is held by more than 1 shareholder, more than 1 director.
For a S Corporation, at least 1 director is required. It is also possible for some states to require statutory officers, such as a president, chief financial officer, treasurer, and secretary, and some states may require a Board chair position, where the corporation is held by more than 1 shareholder, more than 1 director.
Members must manage an LLC, or appoint a manager under the operating agreement.
In the United States, businesses can only open a corporate bank account after incorporating a legal entity. While the process is generally straightforward, it requires specific documentation and the physical presence of company representatives in many cases.
Bank Account Setup in the US: What’s Possible and When
U.S. banking regulations are generally less restrictive than in some countries. However, many banks apply enhanced due diligence if the Ultimate Beneficial Owner (UBO) is a foreign national or if the entity has international shareholders. UBOs must complete IRS Form W-8BEN or W-8BEN-E to certify non-U.S. tax status and comply with FATCA regulations. Traditional banks often require in-person visits and evidence of U.S. business activity or a physical address (though virtual offices may be accepted by some), while remote account setup is increasingly available through select fintech and digital-first institutions.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
is primarily governed by the following laws, which are crucial to understand for effective international HR compliance:
US employment agreements can be written or verbal, though written contracts are recommended for clarity.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
At- Will Employment
Most employment agreements in the US are at will, allowing either party to terminate employment without cause, subject to certain exceptions.
Temporary Employment
Temporary employment is where employees are employed for a specific duration to fill other gaps or temporary vacancies. They are not eligible for employee benefits and may work full-time or part-time hours.
Fixed-Term Contract
An employment agreement with a set end date is known as a fixed-term contract, common for project-based work or seasonal employment.
Independent Contractors
Independent or freelance contractors usually work on a contractual basis (1099) and they are not considered employees.
In the US, probationary periods are not federally mandated but are commonly implemented by employers, typically lasting 90 days. The length and terms can be extended based on company policy, though at-will employment laws still apply.
The regular working hours in the US are 40 hours a week and eight hours a day.
Overtime
There is no federal maximum hour limit an employee can work.
Employees generally do not have contracts. Instead employers hire employees at will, which allows termination without cause.
A notice period is not legally required, but the common practice is to give at least 2 weeks’ notice.
Severance pay is not legally mandated unless contractually agreed.
Foreign nationals can obtain a work permit as an immigrant or temporary (non-immigrant). By applying for an employment-based immigrant visa, foreign individuals with the correct combination of talents, education, and/or job experience may be eligible to live and work permanently in the US.
Work Visa & Permit Options in the US
1. H-1B Visa (Specialty Occupation)
The most common visa for skilled professionals in fields like IT, engineering, finance, and healthcare.
2. L-1 Visa (Intra-Company Transfer)
For multinational companies transferring employees to a US branch or subsidiary.
3. O-1 Visa (Extraordinary Ability)
Designed for individuals with exceptional ability in sciences, arts, education, business, or athletics.
4. TN Visa (USMCA/NAFTA Professionals)
Available to Canadian and Mexican professionals under the USMCA agreement.
5. Employment-Based Green Cards (EB-1, EB-2, EB-3)
Pathways to permanent residence (immigrant status) based on employment.
Key Notes:
While the Fair Labor Standards Act (FLSA) does not mandate paid vacation, employees receive at least 10 days of paid time off (PTO) for the first year of employment, increasing to 14 days in the second year. It further increases to 20 days in the subsequent years.
A covered eligible employee is entitled to 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA). Some states have their own leave laws that may differ from FMLA.
Under FMLA, eligible employees receive 12 weeks of unpaid leave. States have their leave laws that may differ from FMLA.
US law does not require paid sick leave, and FMLA requires unpaid sick leave, which must be offered to employees covered by the FMLA.
The following federal holidays are observed in the US:
Some states and private employers observe additional holidays, and not all employers are required to provide paid time off for these holidays.
As part of our payroll solutions, we handle the most common length of pay period which is biweekly or semi-monthly. Weekly pay periods are also common. Electronic payment methods are preferred, with detailed payslips including deductions and contributions.
The law does not require employers to pay a mandatory bonus or the 13th month salary, however, some companies may offer a bonus or additional payment at the end of the year.
Employees in the United States are required to pay Social Security taxes, which contribute to Social Security benefits.
The mandatory and statutory benefits in the US are:
Accounting standards must adhere to the US Generally Accepted Accounting Principles (GAAP) for publicly traded companies. However, in the US SEC filings, foreign SEC registrants may use International Financial Reporting Standards (IFRS).
Companies in the US must file annual financial statements with the appropriate authorities, depending on entity type:
Statutory audits in the US are triggered based on the entity’s type and funding:
The standard corporate tax rate is 21%.
There is no value-added tax in the US However, there are state and local sales taxes, which vary by jurisdiction.
The filing deadline is typically the 15th of April annually.
The United States tax rule provides a comprehensive set of penalties and interest regulations for failing to pay and failing to file, with relevant amounts typically determined based on the specific form or tax code section at issue.
The US abides by OECD transfer pricing standards, enforced under IRC Section 482:
The US enforces CbC reporting under the Multilateral Competent Authority Agreement (MCAA):
US taxpayers with cross-border related-party transactions must prepare transfer pricing documentation.
Master File
Local File
Deadline: Documentation must be prepared and submitted upon IRS request, typically with the tax return.
The US has a complex, multi-layered data protection framework without a single federal comprehensive law:
Federal sector-specific laws:
State privacy laws:
The US AML framework is robust and administered by FinCEN under the Bank Secrecy Act (BSA) and related acts:
Obligated entities: Banks, credit unions, money services businesses, securities brokers, casinos, real estate professionals, and others.
Key requirements:
Penalties: Civil fines up to US $1 million per violation and criminal charges against individuals or institutions.
Reasons you should setup legal entity in the US:
Cerity Global ensures your business expansion in the US is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your US business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in the US.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location. Cerity Global disclaims any liability concerning the accuracy, completeness, or currency of this information.
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