We will help you opening and running your business in the USA
Our law firm offers all the legal services you need to set up and successfully run your business in the United States. Starting with a free introductory consultation, we will help you open a business in the USA by registering a company, obtaining a tax ID, and opening a bank account. We can also help open a client brokerage account with one of the largest brokerage firms in America to invest in the NYSE, NASDAQ, and other stock exchanges.
How to Open a Business in the USA
-How Can an American Attorney Help You Open a Business in the USA?
-What Types of Companies Are There in the USA?
-Which One Is Best for You?
-Which the US States Are Most Business-Friendly?
Open a Business in the USA
Setting up a business in the United States, preparing all the paperwork, opening an office, etc.
Register a US Company
Registering a company in the USA, getting a registration certificate, and a Federal Tax ID (EIN)
Open a bank account in the USA
Opening an account with a US bank for an LLC or corporation registered in the United States
Open a client brokerage account
Opening a client account with one of the largest US brokers to invest in the NYSE and NASDAQ
How Can an American Attorney Help You Open a Business in the USA?
Many successful foreign businesspeople are still reluctant to enter the US market. There are several reasons for this, such as the allegedly high taxes and complex regulations. However, this is not always so. For example, in some cases, foreign shareholders of the US companies pay minimal or no taxes. In addition, the US regulations may not be a problem if you have an experienced American attorney who can help you open a business in the USA and provide you with legal services related to running your company in the United States.
By registering a company in the United States, you will gain status in the American market. This status will help you open a bank account, a client brokerage account, rent an office, hire staff, and do many other things that an American company can do. Another advantage of setting up a business in the USA is the confidentiality of your information. You can register a company in such a way that information about the shareholders is not public.
When it comes to taxes, having a good consultant can help you reduce taxes significantly, and in some cases, you may not have to pay them at all if you are not a US resident. It all depends on your status and on the status of the company you are registering. Therefore, it is crucial to have an experienced American corporate lawyer by your side.
An American lawyer can help you better understand all the pros and cons of establishing your business in the United States. For instance, you will need professional advice when deciding on the type of company you form, the State of its registration, where to open your office, how to open a business account, etc.
What Types of Companies Are There in the USA?
There are the following types of companies in America:
- Limited Liability Companies
There is one more type of doing business in the United States, namely sole proprietorship. It is the simplest form of doing business in America. It is controlled by a single person and does not form a legal entity. The physical person who does business as a sole proprietor is personally responsible for all business losses.
1. A partnership is an association of two or more persons running their business jointly for profit. The partnership does not have to pay federal taxes. Instead, partners pay their taxes on the distributed profit. On the other hand, partners hold unlimited joint liability for the partnership’s losses. Another essential feature of the partnership is that it does not require registration or any other formalities. A simple, informal arrangement is usually enough to form it. Moreover, some business relationships can be recognized as “partnerships” in court even if the person(s) having them did not formally set up a partnership.
In limited partnerships, there are also limited partners besides general partners. Limited partners don’t run the business, and their liability is only within their contribution to the partnership.
2. A corporation is a prevalent form of doing business in America. It offers limited liability to its shareholders and usually has a developed management structure, including a board of directors, corporation’s officers, and regular shareholders’ meetings. Traditional corporations (C-Corporations) have double taxation. First, they pay taxes on the corporate level, and then the declared and distributed dividends are also subject to personal taxation for their shareholders.
Small corporations (S-Corporations) do not have taxation on the corporate level. At the same time, they have certain limitations:
- Small corporations cannot have more than 100 shareholders.
- They can have only one class of shares.
- Their shareholders can be only US citizens and permanent residents.
3. A Limited Liability Company (LLC) is a hybrid form, combining some of the best features of a partnership and a corporation. It is one of the most popular forms of doing business in America. Like in the case of the corporation, members (shareholders) of the LLC are not held personally responsible for any losses or other issues of the company. Their liability is limited by their contribution to the company. On the other hand, like in partnerships, LLCs are not taxed on a corporate level.
Being a hybrid form, the LLC is very flexible in many ways. For instance, it can be managed by members or hired managers. It can have straightforward management like a partnership or rather complex like a corporation. LLCs are legal entities and must be registered in one of the US States.
Which One Is Best for You?
The answer to this question depends both on your business plans and your situation. For instance, if you are going to form a startup in the United States, raise investments in the US venture market, and launch an IPO, you probably should choose a corporation. Moreover, it should be a C-Corporation, because institutional investors and venture capitalists want a familiar structure with certain corporate features and management. In addition to that, there must be different classes of stock. For this reason, S-Corporation would not be a good choice.
If you are a nonresident willing to form a business company in America, your type of company would be an LLC in most cases. However, in certain situations, it also can be a corporation (C-Corporation), even if you are not going to form a startup. There are many issues to analyze and consider before registering a company in the United States. So get in touch with us. Your first consultation is free.
Which the US States Are Most Business-Friendly?
It is fair to say that, one way or another, all the States in America are business-friendly because America is actively promoting private business initiatives and entrepreneurship. At the same time, there are different factors to consider when deciding which State can be the most appropriate for the lower cost. There are a lot of rankings of the US States based on many criteria. For example, Forbes considers business costs, labor supply, regulatory environment, economic climate, growth prospects, as well as the quality of life. Other rankings can include up to 100 criteria and even more.
However, they have limited value for the simple reason that for different people, different things matter. At the same time, at least one thing for certain matters the most for everybody – taxation. That is why it makes sense to start with a tax analysis like in “The 2021 State Business Tax Climate Index”. Keeping state taxes in mind, you can go further by considering other issues in every particular State that are important for you and your business.
If you are a US nonresident and your US company does not have any business in any of the US States, you probably won’t have to pay any state taxes, and the chances are that your federal taxes can be minimal or even zero. However, to get the complete and correct picture of your taxation in the United States, you need to consult a certified public accountant (CPA) or tax attorney.
QUESTIONS & ANSWERS:
In the United States, there are the following types of companies: 1) Partnership, 2) Corporation, and 3) Limited Liability Company (LLC).
Most US companies choose to register as corporations because corporations can have well-structured management and sophisticated taxation planning.
There are two types of corporations in America: traditional corporations (C-Corporations) and small corporations (S-Corporations).
There are the following two types of partnerships in the USA: General Partnerships and Limited Partnerships.
Usually, the most popular type of US company for nonresidents is the Limited Liability Company (LLC). The LLC offers limited liability to its beneficiaries. It is not subject to federal taxation on a corporate level, and there are no restrictions for the nonresidents to form an LLC in the USA.
No, it is not difficult to register an LLC in the USA. But, at the same time, one should have in mind that the LLC regulations differ from State to State in America. In addition to that, all LLCs registered in the United States are subject to Federal Laws. Thus, the main question is not “How to register your company in America?” or even not “Where to register it?” but what will be the best combination for you in the long run.
There are also many other issues to consider when registering your LLC, like taxation on the Federal and State level, whether you need an office and if “yes” in what State you should open it, open a bank account, hire employees, etc.