The United States is a well-reputed country known for its tremendously growing economy. Distinguished companies like Google, Apple, Microsoft, Airbnb, Facebook, Twitter, etc., seeded in the United States, and soon, they soon expanded to multiple countries. It was the USA’s reliable and thriving economic system that companies like Uniqlo, which formerly originated in Japan, became so successful in the United States and soon turned into a Word-Famous Brand.
The workforce of the USA is highly productive, educated, and creative. Moreover, its excellent infrastructure, transparent Legal system, and access to the world’s most profitable markets make it the most attractive place for business development.
Companies from around the world peek for a chance to enter the United States market. Whether you are a native of the U.S. or a foreigner, if you are aware of the basics, starting a business in the United States is easier than anything. Of course, you need to register your company to give a better start to your business.
Check out this guide to understand “How to register a company in the USA?“
Steps you need to follow to register a company in USA
Follow these below-mentioned steps for the U.S company register.
★Choose the type of entity.
We are starting from the beginning. No matter what type of business you own, or whether you are a foreigner or a U.S. resident, if you want to register a business in the USA, you must be clear about the type of entity you wish to enroll in your business.
Though there are different types of Legal business structures, the entities, LLCs, S-corporations, and C-Corporations, have accessibility to various benefits. These entities are explained as follows;
- Limited Liability Company:
As the term indicates, a Limited Liability Company(LLC) provides limited liability protection to its owners. Therefore, an LLC registration protects the company owners’ and their family member’s personal assets like vehicles, houses, and savings accounts. It is a good choice for high or medium-risk companies due to the advantage of Liability protection which wasn’t achievable with sole proprietorship and partnerships.
- C corporation
Just like LLCs, C-corporations also offer limited Liability Protection. A C-corporation or C-corp can have more than 100 shareholders, and a board of members operates the Company. Lawfully, C-corp is subject to double taxation, including personal and Corporation tax deductions.
- S corporation
With similar benefits to a C-corp, the S-corporation is immune to double taxation. Therefore, just the Corporation needs to pay the taxes, and there is no need for shareholders to make taxation payments. Further, unlike a c-corp, an s-corp can have only a limited number of shareholders, that is not more than 100.
Limited Liability Protection is one of the utmost advantageous ways to register a business in the USA under the entities mentioned above. Once you pick the entity structure, you can proceed with further steps.
★Choose a Location in the USA for your business.
If you are a resident of the United States, it is better to register your Company in your residential State, where your Company is located. If you wish to register your Company in another state, you also need to register your Company as a “foreign company” in the State where you have assembled it primarily.
Supposing your Company carries out business in various states, it is better to register your Company in the State where its main offices are located. It is a more complicated scenario where a tax lawyer can give a better picture.
If your State doesn’t have a physical presence, you don’t need to pay state taxes, and you are only required to handle federal taxes (This rule might vary as per the State.)
Therefore while setting up a business, it would be more suitable to research and choose a business-friendly state as per your business requirements.
★Pick a Name for your Company.
You also have to pick up your business’s Entity name, Trademark name, and domain name for United States company registration(Trademark and domain names are optional). We have described them as follows;
Entity name: While picking your entity name, make sure someone hasn’t already registered their Company with the same name. Each State has different rules regarding choosing an entity name and using suffixes, so go through these rules before picking out an Entity name for your Company.
Trademark: If you want to protect your Company’s services on the national level, opting for a trademark can help you. Trademarking business names prevents other companies all over the USA from using your name.
Domain name: If you want to build a virtual presence for your business on the internet, you need to create a website for that and choose a domain name. You can pick a domain name different or same as your Company’s entity name and trademark.
Whether entity, trademark, or domain name, make sure to select a unique name that describes your business and its goals.
business requirements.
Our Company Registration Process
1. Fill up the online application with your details.
2. Upload Your Documents
3. Get Approved and Receive your Documents On Your Email.
Hire a Registered Agent
Now you need to hire an agent registered in your State as a representative responsible for sending and receiving emails and important documents on behalf of your business. The registered agent must be located in your business state and must have a physical address in the State. It is beneficial to protect your residential details as you can use your agent’s address on public record instead of a personal or office address.
Register your Company with the State
To officially file your Company with the State, you need to submit the documents required by the State. The requirements of these documents depend on the State you want to register a USA company in. We have listed the primary documents;
To register LLC:
To register Corporation:
Fill in your details:
Connect over audio-video call:
Get your Company registered:
★Get your EIN Number
EIN or Employer Identification Number is also called FEIN or Federal Employer Identification Number. It is a unique nine-digit number issued by the Internal Revenue Service (IRS.) A business’s Social Security number helps the IRS acknowledge the Company’s identity regarding tax-related matters. It is very beneficial to get an EIN as it allows the firm regarding the following;
- File and manage federal and State taxes
- Open a business bank account
- Hire employees
In the event you change your business’s name, location, ownership, or even tax status, you will also have to change or replace your EIN as per IRS demands.
★Apply for licenses and permits
Now, this might vary from business to business. The necessary licenses and permits depend on which type of your business’s industry and its services. For example, suppose your business deals with animal products, biologics, import or transport animals, biotechnology, or plants. In that case, you might need to get in touch with the U.S. Department of Agriculture to get your necessary permits.
If you don’t obtain the licenses necessary to run your business, you can be sued for that. Further, the government will consider your business illegal.
★Get A Mailing Address.
The mandatory process to open an account for your business is to have a physical mailing address. If your business is physically situated in the USA, you can easily use that address. However, if your Company doesn’t have a physical presence in the U.S., you will need a mailing address. Hence, you can opt for any service provider who can provide you with their business address to open your bank account. Some service providers also help you with delivering your business packages.
★Open a Bank account.
A business includes cash flow. To do business in the USA, you must require a bank account. Instead of using a personal account, opting for a merchant account would be best in the long run. You can choose your business bank account for tax payments and basic business transactions. Each bank has different requirements regarding opening a new account. Some of the basic ones are as follows;
- Copy of your passport
- Copy of U.S. address proof
- Business incorporation document
- Tax ID number
★Get A Mailing Address.
The mandatory process to open an account for your business is to have a physical mailing address. If your business is physically situated in the USA, you can easily use that address. However, if your Company doesn’t have a physical presence in the U.S., you will need a mailing address. Hence, you can opt for any service provider who can provide you with their business address to open your bank account. Some service providers also help you with delivering your business packages.
★Get a U.S. Phone Number.
Getting a U.S. Phone number is a requirement if you want your customers or other businesses to interact with you. You can get a Local number as per state code(e.g., Nevada code: 702, Delaware code: 302, etc.) or even enroll for a Toll-free number( Starting with 800, 877.) Most of these numbers have special features other than primary callings, such as voicemail, fax delivery via email, etc.
Maintaining your Company:
Once your business is registered, you also need to maintain your business. Continuing your business is easy if you follow the steps mentioned below;;
- File an Annual Report
Every year, each Registered Company needs to submit a report regarding the details of the Company’s ownership, address, and Registered Agent. This annual report updates the State that the Company is active. Your registered agent can handle that for you. If you don’t submit your business’ annual report, you might need to pay late fees for that.
- Maintain a Registered Agent.
Maintaining a Registered agent is also a crucial step as you won’t be able to receive essential documents or notices that the State sends from time to time.
- Meet Your Home Country Requirements.
If you are a non-resident of the USA and registering your Company in the USA, make certain to submit the necessary details regarding your business. This step might or might not be essential for your Country. Therefore it is better to reach out to a lawyer regarding that.
- Pay U.S. Taxes (if required).
Depending on your nationality, the type of business you own, and your business’s income, you are required to pay state tax. Make sure to pay your federal as well as state taxes on time to avoid late fees.
Note: You can opt for a bookkeeping service that can give you clear statistics about your income and expenditure. Further, bookkeeping will provide you with clarity about the exact tax deductions in advance.
EndNote
Till now, you must have got all the clarity about the U.S. company register. Although the process is simple, we are not denying that managing all the paperwork for register business in the USA and getting through the whole process is troublesome.
You should know that when it comes to a company registration, lottalegal is ready to take care of everything for you, so that you can focus on achieving new heights for your business.
Jason Currie
Author
After hustling for ten years as an attorney, now, Jason Currie has dedicated his life to his one and only love, writing. He writes pieces on finance, business, and taxation for entrepreneurs and small or large businesses using his former proficiency in legal works. Last year, he even published one more volume of his highest-selling book regarding ways of increasing income, which was a huge success. Currently, he is living with his wife and three daughters in Los Angeles.
Read More
What Is an LLC? Types and Benefits
In terms of various aspects, an LLC company is somewhat in between Corporations and Sole proprietorships and is considered a Hybrid Entity.
Why Is Up-To-Date Bookkeeping So Important?
BookKeeping is crucial as it gives a precise picture of financial dealings. The company can collect the data of these transactions, organize it, store it in a particular order and finally analyze it to get clarity about the business’s financial transactions.
How to Hire a Bookkeeper for your Business?
Managing a Business is indeed a tough row to hoe. From planning to execution, there are a lot of points to hit on.
0 Comments