The USA has the largest and appreciated economy in the world, an influential culture, and history. International and local investors have varied business opportunities for starting a company in USA and can set up companies in domains like tourism, technology, engineering, finance and many more. First of all, a business form should be accepted once the company is ready to be incorporated in one of the 50 states in America. There are three major entities which can be set up in the USA, such as:
- • limited liability company (the most popular business structure in USA);
- • corporation (destined for experienced and professional business persons in USA);
- • limited partnership (this can transform into general partnerships under certain conditions);
- • sole proprietorships for small and medium entrepreneurs in the USA.
The most important factor you must consider before open your US company is your ability to obtain visas to travel to the US from your country to open a bank account for your US company. Opening a US bank account will make it easier to do business with other US businesses.
Please note, forming a company in the US does not grant you any visas to work in the USA.
After this, the other most important factors are choosing your company’s state, forming the company, getting a Federal Employee Identification Number (FEIN), and having a physical US mailing address. We will walk you through these factors in the steps below.
Anyone can start a company in the USA; you do not need to be a US citizen, or a US company. Foreign citizens and foreign companies can form a company in the USA.
The steps to open your Foreigner-Owned company are:
- Choose a State;
- Select a name of your company;
- Hire a Registered Agent;
- File Certificate of Incorporation or Articles of Organization;
- Get a FEIN;
- Get a Physical US Mailing Address;
- Open a Bank Account in US.
Choose a State
In the United States, you can open a company in any of the 50 States or Washington DC. Which state you choose will depend on why you are opening the company. Some US states are more “business-friendly” or “international-friendly” than others.
It is usually advisable to form a company in a state without state taxes, so you only have to handle US Federal Taxes.
However, for the purpose of your business, if you need to open offices, or have a physical presence in a particular state, you will need to open a company in that state.
When choosing the state to form your US company in, it is usually best to first consider if you will have a physical office or presence like employees or a job site in a specific state.
If this is the case, it is best to open your company in that state.
However, if your business does not have this physical need, it is usually advisable to form your company in a state without state taxes, so you only have to handle US Federal Taxes.
The three states you should consider are: Wyoming, Delaware, and Nevada.
It is possible for a company to incorporate in one state and have their primary office in another state. For example, for valid business reasons, you may choose to open new offices in State A and State B but choose to incorporate in State C. Once incorporated in State C, the company would simply need to be “re-registered” in States A and B.
Select a name of your company
You need to choose a unique name for the company. No two companies can be incorporated with the same name in the same state. It’s best to avoid generic names and choose a name that is unique but can be easily attributed to your company.
Every state has its own rules about what kinds of names are allowed for company`s. In general, you will need to observe these guidelines:
- Your name must include the phrase “limited partnership” “сorporation”, “limited liability company” or one of its abbreviations (Corp., LLC or L.L.C., LP).
- Name of your company cannot include words that could confuse your company with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your company.
Hire a Registered Agent
When incorporating a company, most, if not all states, require that a “registered agent” be chosen.
The Registered Agent is a person or company that must have a physical address in the state of formation, be available during business hours, and will accept and sign for official legal and state documents for the company.
The registered agent will be responsible for receiving important tax and legal information on the company’s behalf.
File Certificate of Incorporation or Articles of Organization
The company must follow the chosen state’s procedures to formally register the company in that state. Generally, the application for formation will require the company’s name, the name and address of the registered agent, and the names of shareholders or member.
Get a FEIN
The Federal Employer Identification Number (FEIN) also known as an “EIN” or simply “Tax ID Number” is a number issued by the United States Internal Revenue Service (IRS) that is somewhat like an identification number for companies. Once your company is filed by the state, we assist you in obtaining this number from the IRS. The FEIN will be needed, for example, to open a US bank account (and perhaps, one in your home country, please check with your local bank to see if they require this number to open an account).
Get a Physical US Mailing Address
You need a physical address in the state you choose, this is necessary to open a bank account in that state.
One way to get a mailing address in the US is to establish a physical office in the state you’re going to form and do business in, if this is required for your business.
However, if you do not need to open a physical office in the US, you will still need a US mailing address in your company’s state.
If you would like to receive business mail, client mail, etc. at a US address or if every bank that you contact requires you to have a separate physical US address (that is not the same as your Registered Agent), then you’ll need to arrange for a “mail forwarding” and/or “virtual office” service. There are many such services in the US, many of them are based in the above-mentioned states of Delaware, Nevada and Wyoming. Some provide options including weekly or monthly forwarding, online tracking of documents and some may be able to provide you a US phone number as well.
They also receive mail on your company’s behalf to scan and deliver to you online, and forward packages out of the country.
Open a Bank Account in US
Opening a Bank account in US for your company will be the most complicated part of the process because you will need to visit the bank.
If you want to accept US payments, open a US merchant account, or open a physical branch office in the US (or for any other purpose), then you’ll need to open a US bank account. Unfortunately, this has become significantly more difficult in recent years due to various US anti-terrorism laws.
Due to US money laundering laws, banks are required to know their clients.
This will mean you will need to travel to the US, and obtain visas to do so.
Opening a Business Bank account for your company can be done once you’ve formed the company, and received your FEIN.
This is by far the most challenging hurdle, because it can require a trip to America to physically apply at a bank branch. If you choose this route, you’ll need to call the bank ahead of time to make sure you’re bringing all of the required documents.
Different banks may have different requirements, so contacting them first is a must.
There are some other options though. If you have ever opened a personal bank account in the U.S., you might be able to open a business account remotely. Additionally, depending on the nature of your business, you may be able to get by with a service like PayPal.
Your company`s bank account does not need to be opened in the state your company is formed in, however, the bank must have a presence in that state.
Tags: business, company, start a business, USА, United States of Аmerica, how to start company, how to create company in USА, create a company, company registration, taxes, profits, taxation, register, legal entity, what is needed for registration.