Founders usually ask the same question first: in what order do I do things? This checklist to start a US business puts the federal, Illinois and local steps in sequence, so you do not request an EIN before the company exists or walk into a bank without the papers it will ask for. It works for residents and for founders in Pune, Toronto or Calgary who have no Social Security number. Rules and forms below reflect tax year 2025 returns (filed in 2026) and planning for 2026. It sits in our How to Do Business section.
Who should use this checklist
You do not need a visa, a green card or US residency to own a US company. A citizen of India or Canada can form an Illinois LLC or a corporation from abroad. What you cannot do without the right immigration status is work in the business while you are in the United States; that is a separate question, covered briefly in our guide to hiring and moving people into the US.
The checklist also suits residents of Aurora, Naperville, Batavia and the rest of the Fox Valley who are opening a first small business, since the sequence is the same.
Checklist to start a US business, step by step
- Choose the ownership structure. Sole proprietorship, partnership, LLC, C corporation or S corporation. Our entity types and tax forms guide shows the return each one files. Note that an S corporation cannot have a nonresident alien shareholder.
- Choose the state of formation. If you operate in Illinois, forming in Illinois is usually the simplest. If you form elsewhere, you will normally have to register the entity in Illinois too; see foreign qualification in Illinois.
- Form the entity with the Secretary of State. The steps for an Illinois LLC or corporation are in our Illinois step-by-step guide and the LLC vs corporation comparison.
- Get the EIN. The IRS says to register the entity with the state before applying. The details for foreign founders are in the EIN and bank account guide.
- Open the business bank account. Banks collect identity and ownership details under federal rules, and they will ask for the formation documents and the EIN letter.
- Register for state taxes. In Illinois, register with the Department of Revenue, and with the Department of Employment Security if you will have employees. See Illinois employer registrations.
- Handle sales tax. If you sell goods or taxable services, read Illinois sales and use tax registration before the first sale.
- Apply for local licenses and zoning approval. City and county rules vary; start with Illinois local licenses and zoning.
- Set up payroll if you will hire. Use the US employer compliance checklist.
- Set up bookkeeping and a tax calendar. Keep business money separate from personal money from day one; see bookkeeping and record retention.
Where each step happens and how long it takes
| Step | Agency | What the agency says about timing |
|---|---|---|
| EIN by fax (principal place of business in the US) | IRS | Fax cover sheet with the EIN returned in about 4 business days if you give a fax number |
| EIN by mail | IRS | Approximately 4 weeks |
| EIN by phone or fax (principal place of business outside the US) | IRS international operation | One EIN per day; confirm current phone and fax details on the IRS page |
| Illinois business registration online | Illinois Department of Revenue | About one to two business days through MyTax Illinois |
| Illinois paper registration (Form REG-1) | Illinois Department of Revenue | Several weeks (the agency quotes four to eight weeks depending on the page) |
Documents and information you need
- Formation documents (articles of organization or incorporation) and the operating agreement or bylaws
- Passport and a second identity document for each owner and manager
- Residential address and, for a foreign founder, a foreign address in the format the IRS asks for
- The name of the person who will be the EIN responsible party
- Ownership percentages and, for companies, the ultimate individual owners
- Business description, expected start date and whether you will have employees
- Foreign tax identifiers, if any, for the tax forms you may file later
Deadlines that start in year one
| Item | Due date | Note |
|---|---|---|
| Form 2553 (S corporation election) | No more than 2 months and 15 days after the start of the tax year it takes effect | Domestic corporation only; no nonresident alien shareholders |
| Form 1065 or Form 1120-S, calendar year | 15th day of the 3rd month | For 2025 the date was March 16, 2026 because March 15 fell on a weekend |
| Form 1120, calendar year | 15th day of the 4th month | Form 7004 gives an automatic extension of generally 6 months to file, not to pay |
| Form 5472 | Attached to the return and filed by its due date, including extensions | Applies to 25% foreign-owned corporations and foreign-owned US disregarded entities |
Beneficial ownership reporting after the August 2026 rule
FinCEN published a final rule on August 11, 2026 that exempts US-formed companies from beneficial ownership information (BOI) reporting. Only certain foreign entities that register to do business in a US state remain subject to it. If you form a US LLC, you generally do not file a BOI report; if you register a foreign-formed company in a state, read FinCEN's page and our beneficial ownership status update first.
A worked example
Meera lives in Mississauga and owns a small software consultancy. She wants US clients in Kane County and forms a single-member Illinois LLC. She files the formation papers on a Monday, then faxes Form SS-4 to the IRS international number, including a fax number for the reply. The EIN cover sheet arrives the following week, and she opens a bank account with the formation papers and EIN letter. She wires a US$20,000 capital contribution from Toronto.
Because she is a foreign person who wholly owns a US disregarded entity, the LLC must file a pro forma Form 1120 with Form 5472 each year; the contribution is itself a reportable transaction. Canada and the US can classify the same LLC differently, so her Canadian CPA reviews the Canadian treatment, and we coordinate so both countries see the same figures.
Mistakes to avoid
- Requesting an EIN before the entity exists, which can produce a mismatch with the state record.
- Treating a foreign-owned single-member LLC as invisible. The IRS does not require an income tax return from it in the usual way, but the Form 5472 filing still applies.
- Mixing personal and business money, which complicates the books and the liability protection the entity is meant to give.
- Forgetting the Illinois registrations once the federal side is done.
- Ignoring the penalty exposure: the IRS states a $25,000 penalty for failing to file a required Form 5472.
How we can help
We handle the US side of a new business: choosing the structure, coordinating the formation and EIN, setting up the books and payroll, and planning the first-year filings. For founders in India or Canada, we work with your Chartered Accountant or Canadian CPA so the three filings agree. Our firm is based in the Aurora, Illinois area and serves the Fox Valley as well as clients abroad. See business formation and registrations, bookkeeping and accounting and business tax returns and planning. This page is general information, not legal or immigration advice.
Frequently asked questions
Do I need to live in the US to start a US business?
No. Residence is not a condition for forming an LLC or corporation or for getting an EIN. Working in the business from inside the US is a visa question, and a lawyer or immigration professional should advise on it.
Can I get an EIN without a Social Security number?
Yes. A foreign applicant can use Form SS-4 by phone, fax or mail through the IRS international process. The online tool requires an SSN or ITIN for the responsible party.
Should I form in Illinois or Delaware?
It depends on your investors, your operations and your costs. If you actually operate in Illinois, an entity formed elsewhere generally must also register here, so many small operators simply form in Illinois.
Do I need a lawyer?
Not for the tax filings, but contracts, operating agreements, immigration and securities questions are legal matters. We coordinate with your attorney.
When do I file my first federal return?
The return is due after the end of your first tax year, using the dates in the table above. A new entity with a short first year still has a due date.
Official sources
- IRS: Employer identification number
- IRS: Business structures
- Illinois Department of Revenue: Business registration
- FinCEN: Beneficial ownership information reporting
- IRS: Instructions for Form 5472
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.