Starting a new company in the USA can be a great way to expand your business. People tend to have a misconception that this is a complex process and almost impractical. But with proper guidance and knowledge, you can also make your start-up idea come true. Company registration is the first and foremost process for starting a business in the USA. The business owners have to follow some procedures for this process. US government also allows foreigners to set up their company in the US. A foreigner can register their company online either as Inc. or an LLC. in a few simple steps.
Registering the company in the US opens a window for foreign businesses to enter into a world-class economy and gain a higher reputation in the global economy. The Regularized rules and regulations, and low corporates taxes work in favor of these companies. These rules and regulations vary across the states, it is important to look into them in detail. Most start-ups and corporations registered in states like Delaware and Wyoming due to the relaxations in-laws and tax regulations in terms of raising funds. Convenient and cost-effective incorporation and lower tax rates are some of the benefits while incorporating the company in the US.
It is important to choose the appropriate business entity to register a company. Considering which business entity is best suited for their structure and goals, you can register their company either as a Limited Liability Company (LLC) or as Incorporation (Inc.), Companies looking forward to going public and raise funds from venture capitalists usually go for Incorporation or Inc. But LLCs are structured as partnership firms. Hence, large investors prefer not to invest in LLCs.
Choose the location of your business according to the demographics of the company. The company can research the local competition, requirements for the supply chain, property costs, labor cost, corporate taxes, etc. the company should also study the state laws and tax regulations.
You can register a company in the US in a few simple steps.
- Choosing the type of entity
You should decide what kind of company you want to register. You can choose either LLC or Incorporation as mentioned above, considering the business structure and type of investments.
- Hire a registered agent
You should hire an authorized agent. Even though this is an online procedure, only an authorized agent can do the application procedures for registering a company in the US. This Agents collect all the necessary data, document it, and submit the documents. He is responsible for compliance and communication with the authority.
- Selection of company name
Choose a unique name for the company. It should not match with any pre-existing company.
You can check the name availability with the agent. the agent will submit an application for approval of the selected name. also get necessary trademarks and patents for your company logo and name.
- Collection and Submission of the documents
The agent is responsible for collecting all the necessary data which includes records of all members of the company, records of the shareholders, the directors, or any other officials. These records are submitted to the authority by the agent for their appointment.
- Creation of employment identification number EIN
The IRS generates an employment identification number or a tax ID once the agent applies for registration. EIN is a 9-digit sequence allotted to every incorporated company. EIN is essential for filing taxes and creating a US bank account.
- Licenses and permits
Acquiring the necessary licenses and permits for the functioning of the company. These licenses vary from business to business.
- Open a US bank account
You are eligible to open a business bank account once you get the employer identification number. It’s recommended to use separate accounts for personal and business purposes. Opening a business account comes with perks that a savings account doesn’t.