Starting a business anywhere is a challenging task as it tests your capabilities to the core of your existence. But starting a business, particularly in the US, can be incredibly daunting due to the formalities and legalities involved in the process. People often find it challenging to decide what steps they should take to register their business in the US for different types of Entrepreneurs.
If you are one of such individuals with entrepreneurial vision but confused by the process, you just might be at the right place. The News Engine has gathered a group of things you should know on how to apply for the company registration in the United States.
If you are a non-resident, some additional steps will be followed, which will be discussed later on. Before starting a business in the US, you must consider the defining factors of the company. A successful application to convince the US government that you are a legitimate candidate should clearly define the following elements and stated:
- Know your company type
- Know your corporation (S-type, C-type, or LLC Tax; Note that S-type is not available for non-residents)Preferably get an agent that is locally registered.
- Choose a state where you want to register your company.
- What is the location where the company will conduct its business
- Get a mailing address.
- Submit an application for EIN
- Define your company’s business type
- Get a merchant account to deal in transactions from US customers easily
- Purchasing insurance is a must
- Define your registration, permits, and licensing needs
- Define the size of the facility, staffing needs and justify the need for a
- physical location
- Get a good look at your tax liability
- Ensure compliance with the city, state, and federal requirements
- Must appoint a consulting lawyer in whatever state you are registering your company
For Non-US Residents
There are some additional steps to look out for as a non-resident.
- Define where and why you want to set up your business
- Have your intellectual property rights protected
- Evaluate your visa and immigration needs
For due diligence, make sure you provide all the essential documents
- Fill your form at the respective State Filing Office (each state has different requirements)
- Make sure you have the federal Employer Identification number.
File for the BE-13 Survey at US Bureau of Economic Statistics
For proper implementation, you must know how you are going to base your business and where. For this purpose, you must know your company’s demographics, competition available in the local area, supply chain relationships, tax regulations and state laws, and your budget.
An LLC or a Corporation?
Are you struggling with choosing between setting up as an LLC or a corporation? As a foreigner, you can’t obtain a salary or any other sort of compensation because you legally require a work permit. Work permits are given on sponsorship by the employer. So, if you have a work permit for a specific firm, it will only be valid for that firm. You can’t work somewhere else. Unless you obtain the work permit from the other place.
Time taken to get incorporated
Well, it depends on the work your state has on the backlog. An average estimate is that it takes about 30 days for non-residents to get an EIN. A special IRS unit is required to get the tax ID.
Is it worth all the trouble?
The process might seem complicated, but you will realize that company registration in the US is actually straightforward and easy once you get into it. You can also look up for consultants who can make things much convenient for you than yourself. Remember that although you can open up your company in any state, the fee required for each state will be different. If you don’t want to migrate as a foreigner, you also have the option to run your business remotely in the US.
The US is among the world leaders in USA business growth career opportunities. You can get great exposure to a broader client market in this country than the rest of the world. Those of you who are passionate about their work and have the necessary resources, we would highly recommend you to go ahead and make big bucks in the most competitive economy.