Planning to start a company in the US? The process involves more than filing. From choosing the right business address to navigating EIN delays and ODI requirements, first-time founders, often hit unexpected roadblocks.
This guide breaks down the top incorporation errors to avoid so you can launch faster and stay compliant.
1. Using Registered Agent Address as Business Address
Many founders wrongly assume that their registered agent address is their official business address.
But here's the truth:
- A registered agent only receives legal documents and notices
- It’s not a mailing address for banking, IRS, or clients
Using it can lead to missed mail, rejected applications, and loss of credibility.
2. EIN Delays for Non-US Residents
Applying for an Employer Identification Number (EIN) without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is possible, but expect delays.
Common causes:
- Using a foreign address
- Applying with a third-party SSN
- Incorrect EIN form (SS-4) filing
A delayed EIN delays bank account setup and IRS compliance.
3. Ignoring ODI Compliance for Indian Founders
If you're an Indian founder incorporating a US entity, ODI (Overseas Direct Investment) rules apply. You’ll need:
- Coordination with your AD Bank (Authorized Dealer)
- RBI-compliant shareholding structure
Skipping this step risks non-compliance under FEMA (India) and can block capital flow.
4. Not Preparing Valid Proof of Address for Banking
One of the biggest delays in setting up a US business bank account is invalid proof of address.
What banks expect:
- Utility bills or lease agreements in your name
- Business licenses or IRS correspondence
- Not a registered agent’s address
Inaccurate documentation can stretch onboarding from days to weeks.
At FinStackk, we simplify the entire business incorporation USA journey for startups and international founders:
- Correct address setup (registered agent + business)
- Fast-track EIN application, even without SSN
- Help with ODI compliance filing for Indian founders
- Banking guidance, including accepted proof of address
If you're planning to start a company in the US, don’t let small errors lead to long delays.
Ready to incorporate smoothly and stay compliant?
Reach out to FinStackk today.