Why Register a Company in the USA?

There are many benefits to register a company in the USA. First, it will give you access to the largest and the most stable national market for goods and services. And, of course, you will get access to the American financial market, including the largest and most famous stock exchanges in the world – NYSE and NASDAQ. So, whether you are looking to form a startup and then launch an IPO or set up a small business, there are many opportunities in the United States.

The most advanced infrastructure, access to capital, and a highly skilled workforce are all unique features of doing business in America. In addition, opening a company in the United States will give you legal status in the US market. It will allow you to open a business account with one of the US banks, a client account with a brokerage company for investing in the NYSE, NASDAQ, and enjoy other US companies’ benefits.

Corporation or LLC?

Getting ready to register a company in the USA, you need to choose the type of your company. The two most popular business companies in America are Corporation and Limited Liability Company (LLC).

Most large companies in America are corporations. This form of business provides well-structured corporate management: a board of directors, corporate officers including president and CEO, annual shareholders’ meetings, etc. It also allows having a diversified program of corporate incentives and bonuses and sophisticated tax planning.

One of the most significant disadvantages of corporations is their double taxation. The corporations (C-Corporations) pay their taxes on the corporate level after they declare their profit, and then their shareholders pay their taxes on the distributed to them dividends. One way to avoid the double taxation is to apply for the status of the small corporation (S-Corporation) with the IRS . 

However, the S-Corporation has some restrictions:

-Its shareholders can be only US citizens or permanents residents

-It cannot have more than 100 shareholders

-It can have only one class of stock.

Thus, the S-Corporation is not for those who don’t have US citizenship or a Green Card. So, most nonresidents choose to register an LLC, which does not limit their foreign shareholders. Another advantage of the LLC is that it does not pay taxes on the corporate level. Only LLC shareholders (members) pay their taxes on declared and distributed dividends.

Both corporations and LLCs have their pros and cons. Which one to choose depends on many factors, including the business goals and goals. We can help you make your choice by advising on what type of company will better serve your interests. So get in touch with us. Your first consultation is free.

In Which State to Register a US Company?

The answer to this question depends on many things. The first thing that matters is whether you permanently live and work in America. If you do, then in most cases, it makes sense to register a company in the State where you live and work. It will be easier in many ways. For example, let suppose you live and work in one State and register your company in another. Then you will also have to register your company in the State where you live and work as a “foreign company.” It will have to comply with your state regulations like any other domestic company registered in the State of your residence.

However, if your company is actively involved in business in more than one State or forming a startup, you will have a different situation. In this case, you need to choose based on where your company will be doing business and have offices. This scenario is much more complicated, and you probably will have to consult not only a corporate lawyer but also a certified public accountant (CPA) or a tax lawyer.

If you are a nonresident of the USA, the first question is whether you will move to the United States and become a US permanent resident. If the answer is “yes,” then see above. However, if the answer is “no,” then the next question is whether your company will be doing any business in the United States, and if “yes,” what kind of business and where. At the same time, if you will be living out of the USA and your US company will not be doing any business in America, then in some cases, your company won’t have to pay any taxes in the USA.

Therefore, it is crucial to make the right informed decision on what type of company and in what State you register. We can offer you professional advice on what kind of company will be a better choice for you.

After Your US Company is Registered

After you register a company in the USA, you will need to make some additional efforts before your company can engage in business. For instance, your company must get a tax ID – Employer Identification Number (EIN) . Without the EIN you cannot open a bank account for your company.

If you are a US citizen or permanent resident, the process of getting the EIN for your company is relatively straightforward. However, it could be a problem if you are a nonresident and your company does not have a physical office in the United States (a virtual office is not enough). Nevertheless, we can help you with every question at any stage of your decision-making, setting up and running your US company. So get in touch with us, and we’ll start working on your project right away.