First-time founders
LLC, corporation or sole proprietorship: pick the right start.
Business formation · US & Canada
Start your business in the US or Canada.
Cloud Accounting helps you start a business in the US or Canada. US formation includes the state filing, an EIN, a registered agent, an operating agreement and bank account guidance. In Canada, we help you choose a structure and plan the registrations, books and taxes it needs. Either way, you start with books and tax filings in place.
- US and Canadian CPA
- English & Chinese
- Free call, 10 minutes
Your company, step by step
- Book a free call
- Choose a structure
- 3We form your companyIn progress
- 4Get your EIN
- 5Open for business
Filing submitted in 1–2 business daysWe form your company
Di Lu, CPAUS and Canadian CPAWho it's for
Founders outside the US
A US company, EIN and bank account application from abroad.
Canadians expanding to the US
A US company that fits your Canadian tax position.
Growing businesses
A new entity, a new owner, or an S corporation election.
What we set up
United States
- LLC or corporation filingFormation documents filed with the state.
- EINYour federal tax ID number from the IRS.
- Registered agentAn official address for state and legal mail.
- Operating agreementOwnership and management terms in writing.
- Bank account guidanceHelp applying for a US business account. The bank decides.
Canada
- Structure planningSole proprietorship or corporation, and what each means for tax.
- Registration checklistThe business number, GST/HST and payroll accounts you may need.
- Books from day oneBookkeeping set up before your first sale.
Government filing fees are extra. A formation filing does not guarantee bank approval.
What it costs
Starter$237/year$297$1,999$2,999
Build your foundation with company formation, an EIN, and banking guidance.
- LLC filing submitted in 1–2 business days
- EIN (US tax identification number)
- US bank account setup guidance
- US business address
- Registered agent service
Get your business established and keep its filings and finances on track.
- Everything in Starter
- EIN processing up to 2 weeks faster
- Federal and state business tax filing
- One-to-one tax consultation
- Bookkeeping and invoicing software
- Registered agent service
Bring your books and business taxes together with a dedicated bookkeeper.
- Everything in Tax and Compliance
- Dedicated bookkeeper
- Monthly financial statements
- Coordinated bookkeeping and taxes
- Estimated quarterly taxes
Quoted for youAfter your consultation
Canadian setup is quoted after your consultation.
Book a consultationPlan prices are annual, in USD. Government filing fees are extra.
How it works
5 steps from idea to open for business. We do the paperwork; you make the decisions.
- Step 1
Book a free call
Tell us what you'll sell, where, and who will own it.
- Your business ideaWhat you'll sell, and where your customers are.
- The ownersEach owner's name, country and share.
10 minutes
- Step 2
Choose a structure
We compare your options and what each means for tax, before anything is filed.
- United StatesLLC, C corporation, or an S corporation election.
- CanadaSole proprietorship or corporation, federal or provincial.
- Step 3
We form your company
We prepare and file the formation documents for a US company.
- Articles filed with the stateState processing times vary.
- Registered agent and US addressFor official state and legal mail.
- Operating agreementOwnership and management terms in writing.
Filing submitted in 1–2 business days
- Step 4
Get your EIN
Your federal tax ID. You need it for a bank account, payroll and tax returns.
- Online: minutesWhen the responsible owner has an SSN or ITIN and meets the IRS online rules.
- Fax: about 4 business daysThe usual route for owners outside the US.
- Mail: about 4 weeksTimes are set by the IRS.
- Step 5
Open for business
Your company is ready to bank, sell and file.
- Bank account guidanceHelp applying for a US business account. The bank decides.
- Books from day oneBookkeeping set up before your first sale.
- Tax dates on your calendarReturns and state reports, planned before they're due.
LLC or corporation? We'll help you decide.
The right choice depends on who owns the business, where they live, and how profits leave it.
US
Often chosen byOnline sellers, consultants and owners outside the US
Tax returns
- Schedule C (one US owner)
- Form 1065 (two or more owners)
- Form 5472 (foreign-owned)
Limited liability company (LLC)
A company registered with a state that separates your personal assets from the business. By default the IRS treats a one-owner LLC as part of its owner and a multi-owner LLC as a partnership.
- Personal liability protection
- Simple to run, with few formalities
- Owners can live anywhere
- Can elect corporate tax on Form 8832
- Cannot issue stock to investors
- A foreign-owned one-owner LLC files Form 5472 when it has reportable transactions
US
Often chosen byFounders planning to raise money from investors
Tax returns
- Form 1120
- Form 5472 (25% foreign-owned)
C corporation
A separate legal and tax entity owned by shareholders. It pays its own tax on Form 1120, and shareholders pay tax again on dividends.
- Personal liability protection
- Can issue stock and take on investors
- Owners can live anywhere
- Profits taxed twice: in the company, then as dividends
- More formalities: directors, minutes and annual reports
US
Often chosen byUS-resident owners with steady profits
Tax returns
- Form 2553 (election)
- Form 1120-S
S corporation
Not a separate entity type: a corporation or LLC that elects on Form 2553 to pass its profits to the owners' personal returns, so they are taxed once.
- Profits taxed once, on the owners' returns
- Personal liability protection
- No nonresident alien, partnership or corporate shareholders
- No more than 100 shareholders and one class of stock
- Every shareholder signs the election
CA
Often chosen byFreelancers and new, small businesses in Canada
Tax returns
- T1 with T2125
Sole proprietorship
You run the business yourself, under your own name or a registered business name. The business is not separate from you.
- The simplest way to start
- Business income goes on your own T1 return, on Form T2125
- You are personally responsible for business debts
- All profit is taxed as your personal income
CA
Often chosen byGrowing businesses and owners who keep profits in the company
Tax returns
- T2
- GIFI financial statements
Canadian corporation
A separate legal entity, incorporated federally or in your province. It pays tax separately from its shareholders and files a T2 return each year, with few exceptions.
- Debts belong to the corporation, not the owners
- Taxed separately from its shareholders
- Incorporate federally or in your province
- A T2 return each year, even when no tax is due, with few exceptions
- Financial statements with every return
What to prepare
Bring what you have. Missing records can be part of the conversation.
- Your proposed business name, and a backup.
- Each owner's name, address and ownership share.
- What the business will do, and where.
- Any existing companies, registrations or bank accounts.
Common questions
Short answers here. For your own situation, ask at a consultation.
Book a consultationCan I form a US company if I don't live in the US?
Yes. US citizenship or residency is generally not required to own a US company. We handle the filing and the EIN; banks make their own account decisions.
Should I form an LLC or a corporation?
It depends on who owns it, where the owners live, and how you plan to take money out. We go through the options with you before anything is filed.
How long does it take?
We submit the state filing in 1–2 business days; the state's processing time varies. The EIN can take minutes online when the owner has an SSN or ITIN and meets the IRS online rules, or about 4 business days by fax for owners outside the US.
Does formation include bookkeeping and taxes?
Not on the Starter plan. Tax and Compliance adds business tax returns and bookkeeping software; Business in a Box adds a dedicated bookkeeper.
What does it cost?
US formation is on the Starter plan, plus state fees. Canadian setup is quoted after your consultation.
Guides on this topic
- Converting a sole proprietorship or LLC: steps and tax cost
- LLC or C Corporation: How to Choose for Tax
- Rental property or home in an LLC: what changes for tax
- Second Business: DBA, Separate LLC or Holding Company?
- Moving an LLC or Corporation to Another State
- Reinstating a Dissolved or Suspended LLC or Corporation
Show all 22 guides
- US Company Address, Agent and Bank Account From Abroad
- After forming your company: first filings and deadlines
- Formed in one state, operating in another: must you register?
- Splitting LLC Ownership When One Funds and One Works
- Owning an LLC on a US Visa: Tax Status and Filing
- Which State Should You Form an LLC or Corporation In?
- Holding Companies and Investing Inside Your Corporation
- Moving a Business into a Corporation: Section 85
- Starting Together: Partnership or Corporation?
- Professional Corporations in Canada: Who Can Incorporate?
- Should You Incorporate Your Business in Canada?
- Starting a Second Business in Canada: Same Company or New?
- After Incorporating in Canada: CRA Accounts and Fixes
- Buying a Business in Canada: Shares, Assets and Tax
- Incorporating in Canada Without PR: Directors and Tax Status
- Registering a Canadian Corporation in a US State
Official sources
- IRS: Starting a businessFederal starting points include business structure, tax identification, taxes, and records. State requirements are separate.
- IRS: Limited liability company (LLC)By default a one-member LLC is disregarded as separate from its owner and a multi-member LLC is a partnership, unless it elects corporate treatment on Form 8832.
- IRS: S corporationsS status needs a domestic corporation with no more than 100 eligible shareholders, no nonresident aliens, and one class of stock, elected on Form 2553.
- IRS: Employer identification numberApply online if the responsible owner has an SSN or ITIN and meets the IRS online rules; by fax the EIN comes in about 4 business days, by mail in about 4 weeks. Applicants outside the US can also apply by phone.
- Government of Canada: Starting a businessPlanning, business names, registration, permits, and licences are distinct steps.
- CRA: Sole proprietorships and partnershipsSole proprietors report business income on their personal return, calculated on Form T2125.
- BDC: Types of business ownershipCompares sole proprietorships, partnerships and corporations on liability, tax and registration, federal or provincial.
Use these for background; they do not replace advice on your situation. Links checked .