Building a Remote-First Company in 2025: Formation Tips for the Modern Entrepreneur

The way we work has changed forever. In 2025, remote-first companies aren’t just a trend—they’re the new normal. Businesses that embrace remote work cut costs attract top talent, and scale faster than their office-based competitors. If you’re launching a new business, going remote from day one gives you flexibility, access to a global workforce, and a competitive edge. But, setting up a remote-first company requires a different approach than a traditional business. This guide will walk you through how to form a remote-first company in 2025—from choosing the right legal structure to building a high-performing team and setting up essential systems.

 

Why Build a Remote-First Company?

A remote-first company is designed to operate without a physical office. While some remote companies still have offices, a remote-first setup ensures that every employee, regardless of location, has equal access to tools, resources, and opportunities.

Here’s why it makes sense in 2025:

• Lower costs – No office rent, utilities, or in-person overhead.
• Access to top talent – Hire the best people from anywhere in the world.
• More productivity – Employees work in environments that suit them.
• Happier teams – Better work-life balance leads to lower turnover.
• Scalability – Expand your business faster without worrying about office space.

But while the benefits are clear, building a successful remote-first company requires planning.

 

Step 1: Choose the Right Business Structure

Your legal structure determines how your business operates, pays taxes, and protects personal assets. Here are the most common options:

Limited Liability Company (LLC) – Best for Most Startups

An LLC offers:

✔ Personal asset protection—Your personal savings are separate from business debts.

✔ Simple taxes—Profits pass through to your personal tax return.

✔ Flexibility—Easy to scale as your remote team grows.

Most remote-first businesses choose an LLC because it’s affordable, easy to set up, and doesn’t require complex compliance rules.

 

C-Corporation – Best for Fundraising

A C-Corp is ideal if you plan to raise venture capital or issue shares to investors. It offers:

✔ Limited liability protection.

✔ Easier access to funding.

✔ Ability to scale globally.

However, C-Corps have higher taxes and more paperwork than LLCs, so they’re best for startups planning to raise large amounts of capital.

 

Best States for Remote Businesses

If you’re forming an LLC or corporation in the U.S., some states offer better tax advantages for remote businesses. The top picks are:

• Wyoming – No state income tax, strong asset protection.
• Delaware – Popular for tech startups and easy fundraising.
• Nevada – No corporate income tax and business-friendly laws.

You can use online LLC formation services like Northwest Registered Agent, Bizee, or Swyft Filings to handle the paperwork for you.

 

Step 2: Register Your Business & Set Up Banking

Once you choose your business structure, you’ll need to register it legally and open a business bank account.

• File LLC or Corporation Documents – Submit formation paperwork in your chosen state.
• Apply for an EIN (Employer Identification Number) – This is like a social security number for your business and is required for tax filing.
• Open a Business Bank Account – Keep personal and business finances separate.

If you’re looking for state-specific business formation guides, check out our full breakdown below.

State LLC Guides

 

Step 3: Hire & Build a Remote Team

Your team is the backbone of your business, and hiring the right people in a remote-first setup is critical.

Where to Find Remote Talent

• Upwork & Fiverr – Best for freelancers and project-based work.
• We Work Remotely & Paired– Great for hiring full-time remote employees.
• LinkedIn & AngelList – Best for finding skilled professionals in tech and startups.

How to Hire Remote Employees

• Focus on self-motivation – Look for people who can work independently.
• Set clear expectations – Define goals, tasks, and responsibilities upfront.
• Use a structured hiring process – Conduct video interviews and skills assessments.

You can offer asynchronous work flexibility to allow employees to work in different time zones without constant meetings.

 

Step 4: Set Up Remote Work Systems & Tools

To make remote work efficient and productive, you need the right tools. Here’s what every remote-first business should have:

Communication & Collaboration Tools

• Slack – Real-time messaging for teams.
• Zoom or Google Meet – Video conferencing for meetings.
• Loom – Record quick video messages instead of writing long emails.

Project Management & Productivity Tools

• ClickUp or Asana – Manage projects, deadlines, and team tasks.
• Trello – Great for tracking tasks with a visual board.
• Notion – Centralized workspace for company knowledge and docs.

Payroll & Payments for Remote Teams

• Deel – Handles international payroll and compliance.
• Payoneer or Wise – Easy global payments for contractors.

Pro Tip: Create a remote work playbook that outlines expectations, communication guidelines, and company culture.

 

Step 5: Make Sure Legal Compliance for Remote Employees

If your team is spread across different locations, you need to be aware of tax and labor laws in different states or countries.

Key Legal Considerations for Remote Businesses

• Independent Contractor vs. Employee – Misclassifying workers can lead to legal issues.
• State & Country Tax Laws – Some locations require businesses to register if they hire remote workers there.
• GDPR & Data Privacy – If you collect customer data, ensure compliance with global data protection laws.

You can use Deel or Remote.com to manage international hires legally without setting up foreign business entities.

 

Final Thoughts: Is a Remote-First Business Right for You?

Building a remote-first business in 2025 is one of the smartest moves you can make as an entrepreneur. It reduces overhead costs, gives you access to global talent, and provides flexibility that traditional businesses can’t match.

Steps to Take Today

1. Choose your business structure (LLC or C-Corp).
2. Register your business and open a bank account.
3. Hire the right team using remote-friendly platforms.
4. Set up communication and project management tools.
5. Make sure you’re compliant with tax and employment laws.

By following these steps, you can build a fully remote company that’s scalable, efficient, and future-proof.