Great Economic Environment To International Businesses
Get 30 minutes of expert counselling. No Spam.No Sharing. 100% confidentiality
Book a 30-minutes Consultation from a Legal and Financial Expert Now.
Fill up the simple contact form available on this page.
Our experts will call you to understand your requirements.
You will receive complete details along with the personalized quotation in your email.
The country where dreams come true, the USA is a preferred name for startups as well as established organizations to do business. The thriving US markets and access to a global marketplace make it one of the best countries for businesses to thrive. It is an economic superpower with advanced technology and infrastructure coupled with abundant natural and human resources. Here are some factors that make the USA the best place to establish your presence.
There are different types of companies that you can incorporate in the USA. Before you register a company in the USA, it is important to identify the best structure for your business. Here are the different types of companies you can incorporate in the USA:
Type of Company | Features |
---|---|
Sole Proprietorship | While you get a trade name, the entity does not have a legal personality. This means that the proprietor is responsible for the debts of the sole proprietorship. These are good options for low-risk businesses or for those who want to test an idea before registering a company. |
Partnership | A minimum of two people can work together under a common entity name. You can opt for a general limited partnership (LP) or a limited liability partnership (LLP). Partnerships are a good option for businesses with many owners or professional groups. |
Limited Liability Company (LLC) | This structure offers the benefits of a corporation and a partnership. It protects you from personal liability unless the LLC faces a lawsuit or bankruptcy. LLCs are a good option for medium-to-high-risk businesses. |
Corporation – C-Corp | This is a standard business corporation with a legal identity separate from its owners. You are required to maintain financial records and pay corporate taxes. C-Corps are a good option for businesses that need to raise money or intend to go public in the future. |
Corporation – S-Corp | This is a special type of corporation allowed in some states in the US. It offers the benefit of passing on some profits and even losses directly to the personal income of the owners without being subjected to corporate tax. |
Corporation – B-Corp | A Benefit Corporation or B-Corp differs from C-Corps in accountability, purpose, and transparency. They are usually driven by a mission and profits. The shareholders of B-Corps hold the company responsible for generating profits and ensuring some public benefit. |
Corporation – Close Corp | A Close Corporation is similar to a Benefit Corporation with a less traditional corporate structure. |
Corporation – Non-Profit | These are corporations that are involved in charity or social causes. Non-profit corporations can get tax exemption from the IRS. They are also referred to as 501(c)(3) Corporations. |
Cooperative | This is a structure that is owned and operated by the people who use its services. Profits are usually distributed among the members of the cooperative. |
Get 30 minutes of free consultation
with our company formation experts!
Here is how you can register a company in USA:
It can take between four to six weeks to register a company in USA provided you have all the documents ready. Also, you will not be required to visit the USA to complete any formalities as our team will do the necessary legwork for you. Here is a step-by-step process of USA company registration.
Step 01: Consultation & Determination
Once you decide to register a company in the USA, you need to determine if you can legally open a business in the country. Also, you will need to ascertain the state(s) in which you want to incorporate and run your business. You also need to determine if you want protection for your intellectual property or need any special licenses. Our team will help you draft a preparation plan to register a business in the USA.
Step 02: Planning and Preparation
With the business requirements identified in Step 01, you need to choose a company name that is relevant, unique, and appropriate. You will also need to determine the type of entity you want to register. It is important to remember that in the USA, each state has its own laws and regulations. Hence, you need to ensure that you are aware of these regulations before registering your company name and preparing for incorporation.
Step 03: Prepare the documents needed for USA company registration
While the documents needed can vary from state to state, here is a generic list of documents needed to register a company in the USA:
Step 04: Application for company registration in the USA
Once you have your documents in place and a local registered agent by your side, you are ready to submit the incorporation application to the respective state department. If you are planning to operate in multiple states, then you will have to register your company in all such states. You will also be required to obtain the EIN and file the BE-13 Survey with the US Bureau of Economic Statistics.
Step 05: Open a Corporate Bank Account
The next step is to open a corporate bank account in the name of the entity. As soon as the bank account is opened, you need to deposit the initial share capital of the company if required.
While you can register a company in USA from your home country, if you want to go there to run it, you will need a US business visa. There are different types of business visas available in the US:
There are various other visas that can be explored. Our team can help you find the perfect visa for your requirements.
While the compliance requirements will depend on the choice of business structure and the state, here are some common compliance requirements for companies incorporated in the USA:
State Compliance Requirements
Federal Compliance Requirements
When a foreign national starts a business in the USA, the net US-sourced income of the business is called ‘Effectively Connected Income’ or ECI. This is taxed at the corporate tax rate of 21% plus applicable state/local taxes. This can be a direct business or via a branch or subsidiary.
Further, if the business holds assets that generate ECO, then it is subject to another tax called Branch Profits Tax or BPT. The rate of BPT is 30%. However, if there is a treaty between the US and the home country of the business owner, then this rate can be lower. Also, if the business holds US situs assets like US stocks or domestic partnerships or US real estate, then the income from such investments can be deemed as ECI or Fixed, Determinable and Periodic (FDAP) Income. FDAP is subject to a tax withholding of 30%.
Get 30 minutes of free consultation
with our company formation experts!
If all your documents are in order, then you can register a company in the USA within 4-6 weeks. However, some states like New York offer rush processing where the incorporation process is completed within 2-3 days. However, this is available for an extra fee.
There are various factors that you need to consider before deciding the state in which you want to register your company. These include demographics, local competition, the presence of the supply chain, state regulations and laws, and budget.
There is no minimum capital required to register a company in the USA.
No, you can register a company in the USA without leaving India by appointing a local agent.
Get 30 minutes of expert counselling. No Spam.No Sharing. 100% confidentiality
Netherlands
Nieuwezijds Voorburgwal 104 Amsterdam – 1012 SG, The Netherlands
Phone:+31202441878
USA
501 Silverside Rd, Suite 105 Wilmington, DE 19809 USA
Phone +16503831061
India
WeWork Platina Tower, Sikandarpur, Gurugram Haryana 122002
Phone: +919643460171
Canada
398-2416 Main St Vancouver BC V5T 3E2 CANADA
Phone +16503831061
©2021 ODINT Consulting LLP