How to Start a Remote-First Business in 2025 (Step-by-Step Guide)

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Running a remote-first business is no longer a trend—it’s the new standard. Companies of all sizes are shifting to fully remote or hybrid models, giving entrepreneurs the freedom to build businesses without being tied to a physical office.

If you’re an entrepreneur looking to start a remote-first company in 2025, this guide will break down how to structure, register, and scale your business efficiently while keeping operations smooth and costs low.

 

Why Go Remote-First?

A remote-first business operates with the assumption that all or most employees work remotely. Unlike hybrid models that still depend on office space, remote-first companies prioritize flexibility, digital collaboration, and cost efficiency.

Benefits of Running a Remote-First Business

  • Lower overhead costs—no expensive office leases
  • Access to global talent instead of being limited to local hires
  • Improved work-life balance for you and your team
  • Higher employee satisfaction and retention
  • Scalability without worrying about office space

Remote work isn’t just about working from home—it’s about building a company that thrives without a central office. Here’s how to set one up the right way.

 

1. Choose the Right Business Structure

Starting a business remotely doesn’t mean skipping legal requirements. You still need to register your company, file taxes, and ensure compliance.

Best Business Structures for Remote-First Companies

  • LLC (Limited Liability Company) – The most popular choice for remote startups. Protects personal assets and offers tax flexibility.
  • S-Corp – Great for tax benefits, especially if you plan to take distributions as an owner.
  • C-Corp – Best for startups planning to raise funding or scale internationally.

Pro Tip: If you’re a solo entrepreneur, an LLC with an S-Corp election can save you money on self-employment taxes.

Where Should You Register Your Remote Business?

Certain states have lower LLC fees and better tax benefits for remote companies.

  • Best States for LLCs: Wyoming, Delaware, New Mexico
  • Best for C-Corps: Delaware (favored by investors)

If you’re a U.S. entrepreneur working remotely from another country, consider registering your business in a state with no income tax, like Wyoming.

 

Explore the 15 cheapest states to form an LLC in 2025, including filing fees, annual costs, and the best states for your business needs in this blog below:

15 Cheapest States to From an LLC in 2025

 

2. Get an EIN and Set Up Business Banking

Even though your company is remote, you’ll still need a legal business identity to separate personal and business finances.

Steps to Get Your EIN (Employer Identification Number)

  1. Apply for free on the IRS website.
  2. Use your EIN to open a business bank account.
  3. Register for state and local taxes if required.

Best Banks for Remote Businesses

  • Chase Business Complete Banking – Offers cashback and travel perks
  • American Express Business Checking – No monthly fees, integrates with Amex cards

 

Check out our favorite credit cards for small businesses:

Best Credit Cards

 

3. Build a Fully Digital Operations System

To run a remote-first business efficiently, you need the right software and automation tools.

Best Tools for Remote Business Operations

  • Project Management: ClickUp, Trello, or Asana
  • Communication: Slack + Loom for async video updates
  • HR & Payroll: Gusto or Deel for global team management
  • File Storage & Collaboration: Google Drive or Notion
  • Accounting & Taxes: QuickBooks, Bench, or Wave (for free invoicing)

Automation is key—set up systems that eliminate manual work so your remote team can focus on high-impact tasks.

 

4. Hire and Pay a Global Team

A remote-first business lets you hire the best talent, no matter where they live.

How to Find Remote Employees

  • Upwork & Fiverr – Great for freelancers and contract workers
  • We Work Remotely – Job board for fully remote employees
  • LinkedIn & AngelList – Best for hiring experienced remote professionals

Pro Tip: If you plan to hire internationally, use Deel or Remote to handle global payroll and compliance.

 

How to Pay Remote Employees & Contractors

  • For U.S. employees: Use Gusto for payroll and benefits.
gusto payroll logo
Sign up and get 2 months free
Key Features

Payroll processing and tax filing
Employee benefits management, including health insurance and retirement plans
Time tracking and attendance tools for accurate payroll

Simplifies payroll and tax filing for businesses of all sizes.
Provides a complete employee benefits package, making it easier to manage compensation
Offers time tracking tools to ensure accurate payroll and attendance management

 

  • For international contractors: Use Wise (formerly TransferWise) for low-fee payments.

 

  • For global teams: Use Deel to handle compliance in multiple countries.
Starting from $49/month
Key Features

Global payroll processing for remote teams
Compliance with local tax and labor laws
Automated payments in multiple currencies

Simplifies managing payroll for remote teams across different countries
Ensures compliance with local tax and employment regulations
Allows businesses to pay employees in their preferred currency, reducing administrative work

 

5. Set Up a Virtual Business Address

Even if your business is remote, some legal paperwork and banks require a physical address. Instead of using your home address, get a virtual business address.

Best Virtual Mailbox Services

  • Earth Class Mail – Scans and forwards business mail.
  • Anytime Mailbox – Low-cost digital mailbox service.
  • Regus Virtual Office – Comes with phone answering services.

This keeps your business professional while maintaining privacy.

 

6. Manage Business Taxes as a Remote Entrepreneur

Running a remote business doesn’t exempt you from paying taxes.

Tax Considerations for Remote-First Businesses

  • If you live in a different state or country from where your LLC is registered, you may still owe state or local taxes.
  • If you have remote employees in different states, you may need to register as an employer in multiple states.
  • International entrepreneurs running a U.S. LLC should file a W-8BEN-E form to avoid unnecessary taxes.

Pro Tip: Use a tax professional or software like QuickBooks Self-Employed to track deductions and file correctly.

 

7. Create a Remote-First Culture

A successful remote-first business isn’t just about working from anywhere—it’s about building a strong digital work environment.

Best Practices for Remote Team Success

  • Set Clear Expectations: Document standard operating procedures (SOPs).
  • Prioritize Communication: Use Slack and async video updates to stay aligned.
  • Build a Strong Team Culture: Host virtual team check-ins and meetups.
  • Focus on Outcomes, Not Hours: Give employees flexibility and trust.

When done right, a remote-first culture leads to happier employees, increased productivity, and better work-life balance.

 

Final Thoughts: The Future of Remote-First Businesses in 2025

Running a remote-first company is more than just avoiding an office—it’s about building a scalable, flexible, and efficient business that operates from anywhere.

Key Takeaways for Entrepreneurs

  • Choose the right business structure (LLC, S-Corp, or C-Corp).
  • Get an EIN and open a business bank account.
  • Use remote-friendly tools like ClickUp, Slack, and Deel.
  • Hire global talent and use payroll services like Wise or Gusto.
  • Set up a virtual business address to stay compliant.
  • Stay on top of remote business tax rules to avoid penalties.
  • Build a strong remote culture focused on results, not micromanagement.

The remote-first model isn’t the future—it’s the present. Entrepreneurs who embrace this fully digital way of running a business will have the biggest competitive advantage in 2025.

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