COMPANY REGISTRATION IN THE USA
The United States is a desirable location for new businesses and established organizations due to its reputation as the land of opportunities. Its flourishing markets and global access make it an exceptional country for businesses to thrive. With advanced technology, infrastructure, and an abundance of natural and human resources, the USA is an economic superpower. Numerous factors contribute to the USA being the best place to establish your presence.
- Helps your company achieve a global reputation.
- The country has rules and regulations that are favorable and supportive for businesses.
- by following these steps. By following these steps, accessing capital becomes more straightforward and efficient.
- Admittance to new business sectors
- Low corporate tax
- Innovation cordial country
- Accessibility of bountiful normal and HR
- An economy is both competitive and supportive towards growth.
Which state in the United States is the best choice for business and why should one consider conducting business in this particular country?
Many entrepreneurs around the world are interested in establishing or expanding their businesses in the United States. The U.S. is considered the top business destination in the world, and its market is a key factor for success in any business worldwide. The USA is known for having the largest and most integrated market with the lowest tax rate, making it an attractive option. Setting up a company in the U.S. is also a quick and easy process that can be done entirely online.
The inquiry now revolves around which location to select for registration.
If your company has no physical connection to a specific state, it is advised to establish your business in one of the states that provide favorable incorporation laws, namely Delaware, Wyoming, or Nevada.
Delaware is renowned worldwide for its incorporation services, with almost half of US publicly-traded companies and over 65% of all Fortune 500 companies being incorporated in the state, including big names such as Apple, Coca-Cola, Google, and Wal-Mart.
Delaware is considered to be one of the most reputable states for businesses due to its strict enforcement of corporate regulations and the responsibility it places on companies to comply with them.
Delaware boasts of a favorable tax system. Businesses operating outside the state are not obligated to pay state taxes. Furthermore, non-residents are exempted from paying inheritance tax on stock ownership, the state does not impose sales tax on intangible property, and a portion of stock owned by non-residents is not subject to Delaware taxes.
Private companies incorporated in Delaware do not disclose the details of their shareholders, directors, and officers in their incorporation documents and are not publicly available.
In Delaware, entities are flexible structures where one person can hold all three positions of shareholder, director, and officer.
In addition, it boasts a registration process for organizations that is among the quickest in the United States and has some of the lowest incorporation fees.
Delaware is an excellent place for fledgling enterprises and institutions seeking assistance. Compared to other states and business structures, financial investors, private sponsors, venture banks, and other backers show a preference for Delaware companies.
What are the prerequisites for enlisting a corporation in the United States?
To register a business in the United States as a non-native, one must initially decide on the appropriate legal structure for their organization and determine which state they will incorporate and operate in. We will discuss this in the following section. If the business is involved in e-commerce or an online model that does not require a physical presence in the country, it may be beneficial to register in states such as Delaware, Nevada, or Wyoming where taxes and regulatory compliance are lower than in other states.
Choose a one-of-a-kind title for your business:
Choose a registered agent- In most states, it is mandatory to have a designated “registered agent” who lives within the state. This can be either a person or an organization that is accountable for receiving official mail and managing communication (such as tax and legal information) for your business.
To register your organization, you must provide either the Certificate of Incorporation or the Articles of Organization, depending on what is legally required. Follow the regulations of the state where you are registering your organization. The necessary information typically includes the name of the company, the names of the shareholders or members, and the name and address of the registered agent.
You don’t necessarily have to travel to the US or possess a visa to establish a business there. However, if you don’t have a valid work visa, the government may prevent you from running an LLC from another country. US laws allow foreigners to hold positions as directors and investors of American companies. Nevertheless, an executive and a visa are necessary for someone to perform any duties within the US. Being a resident or citizen is not a requirement to begin a small enterprise in the US.
Starting a business in the United States allows for specific actions to be taken, such as:
- Opening up to a new market in your home country, the United States, or globally, can elevate your business to greater heights.
- Create internet profiles with Amazon FA and various other entities.
- To expand your ability to sell to customers in the area, consider opening a bank account in the United States. For additional information on how to open either a domestic or non-resident account, click here.
- The process of opening a financial account in the US can be complicated. However, if traditional banks are not appealing, there is the option of virtual banks such as B2B Pay. This bank allows you to open a virtual account in Europe, even if you are not a resident, and receive payments from 35 different countries, including the US. If your US company frequently exports goods and services to Europe, having a B2B Pay International Bank Account Number can be beneficial and can help save time and hassle.
- It should be noted that individuals who reside in Cuba, Iran, and North Korea are not allowed to claim ownership of American entities or other assets located in the US.
Once you have created a corporation or a limited liability company (LLC) in the United States, you may proceed to the next steps.
Once your Corporation or LLC is registered, you may need to carry out various tasks based on your specific needs and the purposes of your US company.
- Organize a physical business address in the US or opt for a virtual office.
If you require receiving business or customer mail in the US or if multiple banks require you to have a primary US address separate from your Registered Agent, you will need to arrange for mail forwarding and virtual office services. These services are widely available in the US, particularly in the states of Delaware, Nevada, and Wyoming. Different service providers offer various options including weekly or monthly mail forwarding, online tracking of documents, and some may even offer a US phone number.
2. Open a US Bank Account –
If you want to receive US payments, set up a US trader account, or establish a physical branch office in the US, then you will need to open a US bank account. Unfortunately, due to anti-terrorism regulations, this has become increasingly difficult, but there may be some options available to make the process easier depending on your country of origin. It’s important to understand that this will require some research and is subject to factors outside of our control. We currently recommend Mercury Bank for most of our international clients.
- Begin by establishing a bank account in the country where you hold permanent residency. This can be done by visiting a local bank branch and providing proper identification and documentation. Once your account is open, you can deposit funds and manage your finances, including using online banking services. Having a bank account in your home country can provide a sense of security and make it easier to handle financial transactions while abroad.
If you intend to open a bank account in your home country, you will need to provide the Apostille or Certificate of Authentication as required by the bank. You should inform us of this requirement when requesting our services so that these documents can be obtained as we form your US company. To learn more about the necessary requirements for opening a bank account in your country, please contact your local bank for further information.
3. Get a US Phone Number –
In order to obtain a US telephone number, one has a variety of options available. These include toll-free numbers (such as 800 or 877), or a local number with the ability to choose your desired area code (such as 302 for Delaware, 702 for Nevada, or 307 for Wyoming). Many telephone service providers offer a range of online features, including email delivery of voicemails and faxes, “follow-me” call routing to direct calls to any number of your choosing, and VOIP service to route calls over the internet instead of traditional phone lines. Prices typically start at $9.95 per month, or may charge per-minute fees for international calls.
4. Create a website and design a logo for the company
Most businesses require a basic website for credibility, as it is now a requirement for many payment processors and US merchants when submitting applications. Fortunately, domain names are affordable and new website templates can be built in just a few hours. The cost starts at around $10 per month. If you plan to have a significant online presence, it may be worth considering a professional logo and website design.
5. Get an account with a US Merchant (to Allow Credit Card Transactions) –
To enable customers to pay for your goods or services with credit cards like Visa, MasterCard, Discover, and American Express as well as electronic checks, your business can establish a merchant account with a bank. The bank will deduct the funds from the customer and transfer them to your business’s bank account. To open a merchant account in the US, you will need to have a US bank account, a US business address, and a phone number. Compare costs and apply for a merchant account through our recommended providers online.
What is the cost of registering a company in the United States?
The cost of establishing a company in the United States varies between $600 and $1400, depending on the state.
What is the amount of time required to complete the registration process of a company in the United States?
Organizations operating in the USA are required to complete a registration process with the Secretary of State’s office in their business location. Once the registration requirements are submitted, the government will review and examine the information provided before giving approval. The timeframe for this process may differ depending on the state.
It can take up to 6 weeks for an LLC or S-partnership application to be approved by the Secretary of State in some US states. However, expedited processing is available in a few states, including New York. If timing is crucial for your business plan, it is recommended to pay for the extra fee to reduce the processing time to 2-3 days (cost varies by state).
How Long Does Incorporation Take?
The time it takes to process requests for Tax ID numbers may vary between different states due to their high workload. In most cases, non-residents should expect to wait for approximately 30 days to receive an EIN. If the owners or managers of a business are also non-residents, a special IRS unit must be contacted to file for a Tax ID number.
How to apply for an EIN?
The Employer Identification Number (EIN) is a set of 9 digits that sets your business apart for tax purposes. You need to obtain an EIN before registering your organization as an LLC or partnership. The IRS offers a free registration service to all applicants, which can be completed online.
Do I want a Corporate Seal?
Having a corporate seal is very beneficial. You can use it on various documents such as work contracts, vendor contracts, meeting minutes, loan documents and more. We provide assistance in obtaining a corporate seal. Once you submit all the required documents, your seal will be created.