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north-america · USD · Non-EU

United States

Largest single market in the world with a flat 21% federal corporate income tax, no federal VAT, and fast online formation of Delaware C-corporations.

Corporate tax21%
VAT0%
StripeAvailable
WiseAvailable

Scorecard

All scores are derived from raw country facts via transparent methodologies — see the individual ranking pages for the underlying weights.

Founder friendliness

50 / 100

SaaS friendliness

60 / 100

Remote business

59 / 100

Tax simplicity

58 / 100

Banking access

0 / 100

Taxation

Federal corporate income tax is a flat 21% rate on corporate taxable income, per IRS Publication 542. State-level corporate income taxes apply on top in many states. The federal Corporate Alternative Minimum Tax (CAMT) imposes a 15% minimum tax on adjusted financial statement income for very large corporations (USD 1 billion+ profit threshold).

VAT

There is no federal value-added tax in the United States. State and local sales taxes apply at the point of sale, with rates and rules varying by state and locality and triggered by economic or physical nexus.

Company formation

The default form for venture-backed startups is a Delaware C-corporation, registered with the Delaware Division of Corporations. Filing fees and registered-agent service typically total a few hundred dollars; standard processing is one to three business days, with same-day expedited options available.

Banking & payments

Domestic US banks generally require an in-person visit and an SSN/ITIN for the signatory. Non-resident founders frequently rely on Mercury, Wise, Brex, or similar providers, all of which apply their own onboarding criteria and KYC processes.

SaaS friendliness

Stripe is the established payment processor for US-incorporated businesses, with full support for cards, ACH, and global card acceptance. SaaS sales tax obligations are state-driven and require dedicated tooling once nexus is triggered.

Hiring

Federal employment law sets minimum standards (FLSA, FMLA, etc.); states layer additional rules on top. Payroll requires federal (FICA, FUTA) and state withholdings, plus state unemployment insurance and workers' compensation as applicable.

Compliance

Annual federal Form 1120 corporate tax return, Delaware annual franchise tax filing, and state-level filings where the company has nexus. FinCEN Beneficial Ownership Information (BOI) reporting applies under current rules. Foreign-owned US corporations have additional Form 5472 obligations.

Startup ecosystem

The United States hosts the deepest venture capital, angel, and accelerator ecosystem globally, concentrated in San Francisco, New York, Boston, Los Angeles, Seattle, Austin, and other major metros.

Pros

  • Flat 21% federal corporate income tax and a deep capital market for venture funding
  • Delaware C-corporations are the established default for venture-backed startups
  • No federal VAT regime; sales tax obligations are state-level and depend on nexus

Cons

  • Opening a US business bank account as a non-resident is notoriously difficult and increasingly so post-FinCEN BOI
  • State-level sales tax nexus rules vary widely and create compliance overhead for distributed sales
  • Federal corporate tax filings (Form 1120) and state filings together create a substantial annual compliance load

Best for

  • Venture-backed startups raising US institutional capital
  • SaaS companies whose primary customer base is US-based
  • Founders building toward a US IPO or M&A exit

Not ideal for

  • Solo non-resident founders looking for a low-friction bank account
  • Bootstrapped businesses sensitive to federal+state filing overhead

Related

Sources

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