Estonia vs. USA: Which Country Is Better for Starting a Remote Business?
Where is it easier to open a company: Estonia or the U.S.?
Estonia is globally recognized for its digital-first approach to business. With the e-Residency program, non-residents can open and manage an EU company entirely online, without stepping foot in the country. The process is centralized, transparent, and fast.
The U.S. offers a relatively easy incorporation process, especially through states like Delaware or Wyoming, which are popular among international founders. However, requirements vary by state, and navigating federal vs. state rules can be confusing for non-residents.
Estonia:
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Entire process online via e-Residency
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Company registration in 1–5 days
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Unified national system and digital signature
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No physical presence or local director needed
USA:
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Varies by state (Delaware, Wyoming are easiest)
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EIN (Employer Identification Number) needed via IRS (Internal Revenue Service) can be done remotely with delays.
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Requires U.S. mailing address or registered agent
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LLC registration: 1–3 days, but tax setup may take longer
What are the costs of starting a business in Estonia vs. the U.S.?
Startup and ongoing costs differ significantly. Estonia is lean by EU standards, while U.S. costs vary depending on the state.
Estonia:
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e-Residency card: ~100–120€
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Company registration: ~265€
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Minimum share capital: 0.01€
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Accounting services with Companio:
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PRO PLAN: Starting from €79/month
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PREMIUM PLAN: Starting from €149/month
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USA (Delaware LLC as example):
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State formation fee: ~$90–300 (depending on state)
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Registered agent: ~$100–150/year
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EIN (IRS): Free but may require wait time or agent
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Annual Franchise Tax: ~$300 (Delaware)
- Minimum share capital: No minimum capital required in most states
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Accounting: ~$150–300/month depending on provider
What are the taxes in Estonia and in the U.S.?
Taxation is a key factor in choosing a jurisdiction. Estonia offers a reinvestment-friendly model, while the U.S. uses a more traditional system with state and federal layers.
Estonia:
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Corporate tax: 0% until profits are distributed
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Dividend tax: 22%
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VAT: 24% (starting July 2025)
USA:
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Corporate tax (C-Corp): 21% federal + state tax (0–11%, ex. Delaware: 8.7%, California: 8.84%, Wyoming: 0%)
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LLC: Pass-through taxation (owner taxed personally)
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Dividend tax: 15–20% + state income tax (Delaware: 8.7%, California: 8.84%)
Can I run a business remotely in Estonia and the U.S.?
Both countries support remote business operations — but Estonia was designed with digital founders in mind.
Estonia:
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e-Residency gives digital access to all services
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Invoicing, banking, reporting fully online
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Compatible with online banking platforms like Payoneer, Wise, and more.
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100% digital administration
USA:
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Possible for non-residents, but requires hiring a registered agent, applying for an EIN via mail or third-party service, and often using fintech alternatives to open a U.S. bank account — all of which add time, cost, and complexity compared to Estonia’s digital-first system.
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Banking setup can be challenging remotely
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Registered agent and mailing address often needed
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IRS processes can take weeks without a Social Security Number (SSN)
Are there any visa or residency requirements to open a business?
Neither Estonia nor the U.S. requires you to relocate — but their approaches are different.
Estonia:
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e-Residency is not a visa or tax residency
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Allows full business ownership remotely
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No travel or relocation required
USA:
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Non-residents can open an LLC or C-Corp
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No visa required to own the business
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Must appoint a registered agent with U.S. address
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Opening a U.S. bank account may require visiting the U.S.
Which country is better for remote entrepreneurs and digital nomads?
It depends on your business model, customer base, and preferences — but for pure digital operations, Estonia stands out for simplicity and cost-efficiency.
Estonia may be better if you:
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Want a fully online setup with minimal paperwork
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Are targeting the EU market
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Prefer a reinvestment-friendly tax system
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Are a solopreneur or lean startup
The U.S. may be better if you:
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Need access to the U.S. market or clients
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Plan to raise venture capital
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Want an established international presence
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Can manage U.S. compliance complexity
Want to open a company in Estonia?
We can help — and we can even do it for free (only pay registration fees).
At Companio, we specialize in helping digital entrepreneurs start and manage Estonian companies 100% online. Whether you’re looking for compliance, accounting, or payroll (even for yourself!), we’ve got you covered.
