8 U.S. States Reduce Income Tax Rates, Does Your U.S. Company Benefit? Bookmark 2026 Guide to U.S. Company Incorporation!
Published: 2026-01-27

Enterprise Caiying Group provides U.S. companies / Singapore companies / Japanese companies / Thai companies / Malaysian companies / Canadian companies / Mexican companies / Brazilian companies / British companies / French companies / New Zealand companies / Japanese companies / Singapore companies / Vietnamese companies / Indonesian companies / Philippine companies / Dubai companies and other foreign companies registered in the relevant business and taxation services, but also to provide Hong Kong companies / Shenzhen companies / Guangzhou companies / Shanghai companies / Hangzhou companies / Beijing companies / Hainan companies and other domestic companies registered corporate services, company annual audit / bookkeeping tax / payment of MPF / change information / bank account opening / ODI filing / B Company / Guangzhou company / Shanghai company / Hangzhou company / Beijing company / Hainan company and other domestic companies registered corporate services, company annual audit audit / bookkeeping and tax returns / payment of MPF / change of information / bank account opening / ODI filing / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you have the need or interested in any time to drop me (phone and WeChat consulting: 13045886252 ).

Some Americans have received the good news that they may receive an income tax deduction beginning in 2026.

However, the cuts did not come from the federal government, but from a handful of states; a total of eight states have lowered their income tax rates since Jan. 1, according to the Tax Foundation, a nonprofit think tank.

U.S. experts say states hope to spur economic growth and attract more labor, businesses and investment by increasing residents' incomes.

The Tax Foundation said these tax cuts "show that states are continuing to pursue reforms that will enhance their competitiveness and promote sustained economic growth for years to come."

Figure from the Internet

Here are the eight states that will have low taxes in 2026:

1) Indiana:The single tax rate (flat rate) is reduced from 31 TP3T to 2.951 TP3T in 2025 and will be further reduced to 2.91 TP3T on January 1, 2027; Indiana passed legislation in 2025 that provides for a single personal income tax rate to be reduced by 0.051 TP3T in every even-numbered year from January 1, 2030 onwards, as long as the income threshold is met. The range is gradually reduced to 2.55%.

2) Kentucky:The single tax rate was reduced from 41 TP3T to 3.51 TP3T.

3) Mississippi:The single rate was reduced from 4.41 TP3T to 41 TP3T, the final reduction in a multi-year plan to phase down Mississippi's personal income tax.

4) Montana:The top marginal rate has been reduced from 5.91 TP3T to 5.651 TP3T and is scheduled to be further reduced to 5.41 TP3T in 2027.The lower rate of 4.71 TP3T will remain unchanged, but the scope of application will be extended.

5) Nebraska:The maximum interest rate was reduced to 4.551 TP3T from 5.21 TP3T as part of a plan to gradually reduce the maximum interest rate to 3.991 TP3T by 2027.

6) North Carolina:The single rate was reduced from 4.251 TP3T to 3.991 TP3T, the final rate reduction in a multi-year plan to cut individual income tax rates.

7) Ohio:The single tax rate is reduced from 3.125% to 2.75% for taxpayers earning more than $26,050 per year; those below that income threshold are exempt.

8) Oklahoma:The top rate was reduced from 4.751 TP3T to 4.51 TP3T, and the personal income tax brackets were reduced from six to three.

Therefore, if your side is optimistic about the low tax rate of different states in the United States, you can consult the Enterprise Caiying Group for efficient and professional processing; at the same time, today we also share the applicable groups of U.S. company registration, as well as how to register U.S. companies, how to pick the right state to register the U.S. company to escort your cross-border business to enter the U.S. market!

0Applicable people for registering a U.S. company

1) Chinese sellers seeking a foothold in the US market:

For Chinese businesses looking to gain a firmer foothold in the U.S. market, having a "local identity" enhances the trust of local consumers and helps them better penetrate and expand into the U.S. market.

2) Merchants who reduce the risk of operating an e-commerce platform:

If business on cross-border e-commerce platforms such as Amazon performs well and orders continue to grow, registering a U.S.-based company can effectively reduce the risk of account blocking and may enjoy various preferential policies and support provided by the platforms for local businesses.

3) Entrepreneurs seeking tax benefits:

Some U.S. states have implemented a variety of tax incentives for local businesses that are designed to promote business activity, innovation, and enterprise development. Therefore, by incorporating in specific regions of the United States, cross-border sellers have the opportunity to take advantage of these financial incentives.

4) Companies that focus on brand image building:

In order to establish a more positive and professional image in the U.S. market, some Chinese companies choose to register their companies in the U.S. in order to obtain an official office address and contact information, thus demonstrating to consumers their identity as a reliable partner, and further enhancing brand recognition and credibility.

5) Businesses that plan to raise capital or go public for expansion:

For Chinese companies that intend to expand through financing, or even seek an IPO, registering an entity in the U.S. often makes it easier to attract the attention of investors.

This is not only because the U.S. has a mature capital market system, but also because it provides access to a wide range of investment resources. If you need to register a U.S. company or localize and operate a cross-border e-commerce business to start a U.S. business, feel free to inquire (WeChat: 13045886252)▼▼▼▼

02 How do I incorporate a U.S. company?

①English company name and state of incorporation (company name without punctuation as much as possible, before confirming to the verification of the name).

②Corporate registered capital (default 1,000 shares, one share of one U.S. dollar).

③ business scope of the company (not limited to the number of words, business scope is more to provide its main business products or services can be).

④Over 18 years of age shareholder director ID card front and back or passport, if the shareholder is a company, you also need to provide the business license of the shareholder company.

⑤ If the customer's own U.S. address, it is required; if not, it is ignored.

(6) Shareholder and director e-mail and contact number.

⑦ Shareholder director blank A4 paper signature (or group information confirmation is sufficient).

If you need to register a U.S. company or localize cross-border e-commerce operations to start a U.S. business, you can drop me (WeChat: 13045886252) at any time to do a good job of planning▼▼▼▼

03 How to Pick the Right State to Incorporate a U.S. Company?

Before applying for registration of a U.S. corporation, it is important to define what the purpose and use of the registration is according to your needs.

For example: to register e-commerce platforms such as Amazon and Tik Tok Shop through a U.S. company, or to receive and pay for foreign trade, or to run a business on the ground, or to plan for a U.S. visa, and so on.

Once the main purpose is clear, you can better examine how to apply for the registration of a U.S. company.

Then, plan holistically with your business purpose and approach and choose the state where the business environment is suitable.

When registering a U.S. corporation, the following are generally considered:

1) Which state is best suited for the industry in which the company operates.

2) Which state has the most favorable tax rate for the industry it belongs to.

3) States with low registration fees, operating costs of registration and other cost issues.

4) Whether the registration is easy to manage subsequently.

5) The company's physical business address.

6) How well known is the place of registration.

7) Consider bank account opening.

Characteristics of a Frequently Registered State:

1) Delaware

Pros:① No sales tax, inventory tax, or intangibles tax. ②No local operations, no corporate state income tax. ③Preferred location for the establishment of U.S. public companies.

What industries are suited to Delaware -Manufacturing, financing listed companies, finance, tourism.

2) Nevada

Pros:① Zero state tax, no corporate or personal income tax, no estate tax. ② The Internal Revenue Service (IRS) does not exchange corporate data.

What industries are good for Nevada -Agriculture, minerals, gaming.

3) California

Pros:①Highly recognized in the eyes of Chinese people and economically developed. ②There is no restriction on the scope of business. ③Freedom to name the company.

What industries are California good for -Internet, 3C, IT.

4) Wyoming

Pros:① Zero state tax. ② Rich coal resources, natural gas and oil resources, and good business environment.

What industries are suitable for Wyoming? --Agriculture, Mining, Tourism, no financing needs for listing.

5) Washington State

Pros:① Zero state tax, no interest tax, dividend tax or capital gains tax. ② Electricity is very abundant and cheap, and the manufacturing industry can operate at a lower cost.

What industries are good for Washington State -Manufacturing, import and export, science and technology, trade services.

6) Texas

Pros:① Zero state tax. ② Large population for small and medium-sized businesses operating on the ground.

What industries are good for Texas -Agro-industry.

7) New York State

Advantages: ①Biennial annual review. ② New York State is the world's financial center as well as the largest port in the United States, the Port of New York, which is conducive to the financial and foreign trade industries.

What industries are suitable for New York State? --Foreign trade, finance.

8 ) Colorado

Advantages: ①It is very free to take a name when registering a U.S. company. ② Low registration price and simple management.

What industries are suitable for Colorado--Agriculture, minerals, e-commerce. If you plan to register a U.S. company/Singapore company/Japanese company/Thailand company/Malaysia company/Canada company/Mexico company/Brazil company/Britain company/France company/New Zealand company/Japanese company/Singapore company/Vietnamese company/Indonesia company/Philippines company/Dubai company, etc., and other related business and taxation services for foreign company registration, or plan to register a Hong Kong company/ Shenzhen company / Guangzhou company / Shanghai company / Hangzhou company / Beijing company / Hainan company and other domestic companies registered business services, the company's annual audit audit / bookkeeping tax / payment of MPF / change of information / bank account opening / ODI record / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you can add my WeChat (phone with V: 13045886252) Consultation at any time ↓↓↓ 

If you need to register a U.S. company or operate cross-border e-commerce locally to start a business in the U.S., feel free to inquire (WeChat: 13045886252)▼▼▼

0U.S. companies are registered, how to maintain later?

1) Annual Audit

An annual review includes confirming or updating the basic business information of the company, such as registered address, agent information, and director information.

The timing and requirements for annual audits vary from state to state; for example, Delaware regular corporations are required to complete an annual audit by March 1, while LLCs are required to do so by June.

Other states, such as New York, have biennial annual audits, while California and Nevada have natural annual audits, i.e., one audit per year.

Failure to keep annual audits on time may result in fines or other legal consequences.

2) Tax Returns

Tax returns for U.S. corporations include both state and federal taxes.

For federal taxes, companies are required to file a tax return at the rate of 21% if there is a business profit, and not if there is no profit.

State taxes vary from state to state; some states such as Nevada, Texas, and Washington do not have a state income tax, while others may have a franchise tax that needs to be paid even if the company does not operate locally, such as California and New York.

When filing taxes, companies are required to file the appropriate tax forms and reports and pay the appropriate taxes based on their type (e.g., C-Corporation or LLC) and operations.

Be careful: even if there are no operations, the company is required to file a zero tax return!

Enterprise Caiying Group, not only can help you to register a U.S. company, but also can register companies in other countries overseas.

If you need, welcome to consult me (WeChat No.: 13045886252), or [scan the QR code below] to match your needs, there will be a professional tax consultant to communicate with you in detail ↓ ↓↓↓  

05 Why choose Enterprise Caiying Group?

🏆 Why choose Enterprise Finance? --Professional strength, global trust

Enterprise Caiying Group, since its establishment in 2015, has always been adhering to the mission of "empowering every entrepreneurial dream", focusing on providing one-stop globalized industry, commerce, finance and tax and business services for enterprises.

Our bottom line, from the deep precipitation and authoritative certification:

✅ Service Scale Witnesses Reputation: Accumulated services for more than 300,000+ enterprises, long-term cooperation with more than 50,000+ customers.

✅ Global Network Local Support: Branches are set up in Beijing, Guangzhou, Shenzhen, Hong Kong, Southeast Asia, and the United States, with services covering Asia, Europe, and the Americas.

✅ Official certification qualification escort: with 3 Hong Kong government certified licensed secretarial firms, a U.S. branch and a self-employed Hong Kong accounting firm, and at the same time is the vice president of the Shenzhen Agency Bookkeeping Association, etc., to ensure that the service is fully compliant and reliable.

The four core advantages of Enterprise Caiying's overseas company registration service:

🔹 1. A team of experts to guide you throughout the process

Our team of nearly 400 professionals consists of senior lawyers, accountants, tax accountants and cross-border business consultants. They are well versed in international regulations, handle thousands of high-end cases annually, and can provide optimal customized solutions from structural design to on-the-ground implementation.

🔹 2. digitally empowered, smart and efficient

We have spent 20 million RMB to research and develop our own digital system "Echobo", which realizes process standardization and progress visualization. The integration of AI intelligent analysis can provide quick insight into demand and assist in generating solutions, making complex affairs clear, transparent and efficient.

🔹 3. Eco-links, extra value

We connect over 500,000+ entrepreneurs with domestic and international associations. By regularly organizing cross-border salons, tax law seminars and other activities, we not only solve registration problems, but are also committed to linking resources and creating business opportunities for you.

🔹 4. Full-cycle accompaniment for worry-free sailing

Our services go beyond "successful registration". We provide a full life cycle of services from early consultation, mid-term implementation, to late financial and tax declaration, annual audit and maintenance, and compliance consulting, to become your long-term and stable partner for overseas expansion.

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Image source: some of the image material in this article from the network, such as copyright issues, please contact us to replace the deletion of processing.

Information reference: The content of this article is synthesized from the internal materials of Enterprise Caiying and relevant public network information.

Content Editor: This article was edited and designed by the Operations Department of the Enterprise Caiying Group.

Warm reminder: The relevant policies, conditions, time limits, fees and other information described in this article may be subject to dynamic adjustments, please refer to the latest official announcements or the actual application of the specific circumstances prevail.

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