How to Start Company in the United States 2021
- 1 How to Start Company in the United States
- 2 US Company Formation Checklist:
- 3 Summary of Starting Company in the United States
How to Start Company in the United States
This Article details everything you need to know about starting a business in the US, If you live outside the US, are a non-resident, or US resident living outside the United States. A company in the United States can improve the reliability of your business, increase access to investors and the American Market (the most significant source of any of them in the world).
Suppose you are outside the United States and want to set up a company in the United States Either to open a bank account and a business account in the United States, Get a physical address in the United States. Or for any other reason, we have created this step-by-step resource to lead you through the process, show you precisely what you need, and how we can help. Please note that “Incorporate” means to form a “Company” and “To form an LLC” means to create a “Limited Liability Company” (LLC), which is explained in more detail below.
Please note that “Incorporate” means to form a “Company” and “To form an LLC” means to create a “Limited Liability Company” (LLC), which is explained in more detail below.
To form a company in the United States, we need “Certificate of Incorporation” or “Article of Incorporation” documents. The LLC documents are referred to as “Organizational Articles” or “Organizational Certificate” these documents may have various names depending on the state you select. Additionally, the word “entity” is used to describe a business that is not an individual and can be applied to an LLC or a corporation.
US Company Formation Checklist:
Choose Which Type of Business Entity to Form
Choose the type of Company to form: LLC or corporation.
If any business owner called shareholders for corporations and members for limited liability companies is not a US citizen, they can form a company, also known as a corporation.
There is no limitation on how many partners of a US an LLC or corporation, what country they belong to, or whether they are individuals or other foreign or domestic corporations. But, your home country may have limitations on the type of US business that can work in that country, so you must check your local laws and, if required, contact an attorney-at-law familiar with your situation and the local requirements.
Select a State
It is generally desirable to form an LLC in a state without paying state taxes, so you only must manage the US federal taxes.
However, for your business needs, if you need to open an office or have a physical appearance in a particular state, you will require to form a company in that state.
When choosing the state in which you will set your Company in the United States, it usually is best to start by determining whether you will have an office or physical presence as an employee or a place of work in a particular state.
In this case, it is most suitable to form your LLC in that state.
This eliminates the need to register your LLC and appoint registered agents in various states.
However, if your business does not need a physical address, it is generally a good idea to set up your LLC in a state without paying state taxes, so you only need to manage the US federal taxes.
The three states to consider are Delaware, Nevada and Wyoming.
We suggest Wyoming because they have favorable overseas laws, affordable filing and annual fees.
Name Your Company
Naming your Company is one of the most significant and challenging steps for business owners. A good name plays an essential role in your business success. You should select a unique name for your Company.
We recommend that you check if your company name is available as a web domain. Even if you don’t plan on building a business website today, you might want to buy the URL to prevent others from acquiring it.
Hire a Registered Agent
A person who receives official documents and legal documents on your business is known as a registered agent. The registered agent must be located in the state of formation.
Most states require each LLC to appoint a registered agent. Your registered agent must be a state resident where you do business or a company licensed to do business in that state.
There are two reasons to use a registered agent service:
In order not to lose any necessary documents for the Company, and
Remain anonymous (since most states make information about the Company’s registered agent publicly available)
You need to know that a registered agent is not a mail forwarding service, and you cannot use the registered agent’s address as your legal business address or even your business mailing address.
Get an EIN
To start a company, all businesses in the United States need an Employer Identification Number (EIN) or known as a Tax Identification Number.
EIN is a tax identification number provided by the Internal Revenue Service (IRS) of the United States to recognize a business. Just as US citizens need to have a Social Security number, an EIN is required for an LLC or corporation to manage a business in the United States legally.
It would be best if you had an EIN for:
- Open a business bank account in the United States.
2. To start a company
3. Apply for business licenses and permits
4. File taxes
5. Hire employees
If you are a US resident and have a Social Security Number (SSN), you can apply for your EIN using the IRS online website.
However, if you’re not a US citizen, you probably don’t have a Social Security Number (SSN) or Individual Tax Identification Number (ITIN).
Get a US Business Address
Most US banks also require a mailing address or residential address for opening a bank account. You must have a US Business address to start a US bank account. If you are a US resident, you can use your resident address as your business address. However, if you are from outside United States, you can purchase a US business address.
Open a US Bank Account
If you want to accept payments in the United States, open a Business account in the United States, or open a physical branch in the United States (or for any other reason), you will need to open a bank account in the United States. Become much more complicated due to various US counterterrorism laws in recent years, but many options (depending on your country of origin) can facilitate this process. The critical thing to understand is that this will take a piece of research and is highly reliant on variables ultimately behind our control. We highly recommend Mercury Bank to the majority of international customers business owners use.
Summary of Starting Company in the United States
To Start Company in the United States and Start doing your business you must:
1. Choose Company Type
2. Select State
3. Name Your Company
4. Hire a Registered Agent
5. Get an EIN
6. Purchase US Business Address
7. Open US Bank Account