What should I know before starting a Company in the USA?
Starting a Company in the USA, Starting a business is a challenging endeavour, especially if you want to do it from another country. Because the US dollar is stronger, even smashing other currencies, many entrepreneurs are taking advantage of the situation and travelling abroad to begin their enterprises. If you want to establish a business in the United States, you need to follow the processes outlined below. Here are the 15 meaningful actions you must follow to start a business in the United States.
Determine which business kind is best for you
You must first choose which business model is best for you and which is in high demand right now. The choice to pick the appropriate business structure is critical since the sort of business you choose affects everything from day-to-day operations to taxes, as well as how much of your assets are at risk. It is critical to understand each business type and select the one that is most suited to your scenario and your objectives.
Select a location for the formation of your LLC
If you live in the United States, you should create an LLC or Corporation in the state where you live (the state where you are physically located). For example, if you intend to conduct business in California, you should create your LLC in California.
However, if you are a non-US resident and do not intend to have a physical presence in the US (i.e., you will operate completely from outside the US), you should register your LLC in Wyoming, the greatest and most business-friendly state for non-US citizens.
Obtain a Registered Agent
To receive vital paperwork on behalf of the business, LLCs and Corporations must have a Registered Agent with a physical address (not a P.O. Box) during normal business hours. Your company’s Registered Agent receives official paperwork and legal documents on its behalf. The registered agent must be based in the state in which you are registering. Consider the Registered Agent to be a service that ensures you don’t miss any vital paperwork pertaining to litigation or state taxes. Documents related to lawsuits and state renewal notices are among those included in this category. Many business owners would rather hire a registered agent service than do this function themselves.
There are two reasons why you should employ a Registered Agent service:
- To avoid missing any critical papers or deadlines for the organisation, and
- To maintain anonymity (because most states make the company’s Registered Agent information public),
- It should be noted that a P.O. box is not acceptable as a Registered Agent’s address.
Remember that a Registered Agent is not a mail forwarding service, and you cannot use the Registered Agent address as your company’s legal address or even as its mailing address.
Qualifications for a Registered Agent
- The Registered Agent must be physically situated in the state where the company is being formed.
- During business hours, the Registered Agent must be present at that address at all times.
- The name and address of the Registered Agent must always be maintained up to date with the state, and
- The information of Registered Agents will be made public and easily searchable.
To be clear, you do not need a US address to incorporate a business in the US. The only requirement for a physical address is the presence of a Registered Agent.
You will be able to incorporate an LLC or Corporation in the United States if you have a Registered Agent.
However, in order to get an Employer Identification Number (more on this later) or establish a bank account in the United States, you will need a U.S. mailing address (not necessarily in the state of formation). In this instance, we propose that you seek the services of a “mail forwarding” service provider (more on that below)
You may easily go online for the finest and cheapest Registered Agent service in your selected state of formation – fees will range between $50 and $100 per year. Please keep in mind that this is a reoccurring cost that you must pay each year.
Form your LLC or S-Corporation
Forming your LLC or Corporation yourself and ensuring that everything is done correctly is hard, and it is not suggested unless you have a lot of time and patience.
How long does it take to incorporate?
The time it takes to register your LLC or Corporation varies by state, however, it can take anywhere from 1 business day to 4 weeks, depending on which state you organise your business organisation in and how long the Secretary of State takes.
Obtain an EIN
To begin a business in the United States, an Employer Identification Number (EIN) (also known as a Tax ID number) is required.
The EIN is a Tax ID number provided by the Internal Revenue Service (IRS) of the United States to identify a business. Consider an EIN to be your company’s social security number. Just like a social security number is required for U.S. residents, an EIN is required for an LLC or company to legally conduct business in the United States.
An EIN is required to:
- Open a business bank account in the United States.
- Start your own business.
- Apply for permissions and licences for your business.
- Employ people.
- Pay your taxes
If you are a US citizen with a Social Security Number (SSN), you may get EIN instantly. However, if you are not a US citizen, you are unlikely to have a Social Security Number (SSN) or an Individual Tax Identification Number (ITIN) (ITIN).