The US is the largest market most software founders will sell into, and setting up a company there is mostly paperwork you can do yourself. Getting noticed is harder. This guide covers both: the formation steps that apply to American and international founders, the compliance rules that changed in 2026, and how to launch to US users. Rules quoted here were checked on official government pages on 30 October 2026. This is general information, not legal or tax advice.
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Step 1: Choose a structure
The SBA's business guide sets out the main options (sole proprietorship, partnership, LLC, corporation and others). For startups the choice usually comes down to two:
| Structure | Often chosen when | Points to check with an adviser |
|---|---|---|
| LLC | You want a simple, flexible entity and don't plan to raise venture capital soon | How profits are taxed for you, especially if you live outside the US |
| C corporation |