With a modern and rich development economy, the United States is a great country for the establishment and prosperity of businesses. Yet, surely you will encounter many problems with the procedures for establishing a company. The following article will show readers the basics of company formation in the US.
The Difference in Company Formation in the US
– In the US, there is not a general rule on how to set up a company across the country, instead, there are different regulations in each state.
– All states have basic types of businesses including Sole Proprietorship, General Partnership, Corporation, S-Corporation, and Limited Liability Company
– Most states do not require minimum capital to start a business. The procedures for establishing a company in the states are simple and quick. Foreign-invested companies are subject to the same laws as domestic counterparts.
Fundamentally, there are differences among states. The agency in charge of business registration varies from state to state. The website of the state or county provides complete information and detailed instructions for business registration procedures.
Moreover, the application process is greatly simplified thanks to the online application. Applying to Delaware File is both simple and fast with a low cost, ensuring you to save a lot of time and procedures. Delaware File is a reputable organization specializing in providing services related to company formation such as LLC and INC formation, EIN and ITIN application, and US Business Bank Account.
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Notes about Starting a Business in the US
Select the Appropriate Type of Business and Location
The documentation and procedures for establishing a corporation (corporation) or limited liability company (LLC) are not difficult; so you can find a lawyer or register online through an online legal filing service. Online services are more affordable, while they still can maintain legitimacy.
Here are the basic procedures for establishing a company in most states:
– Business owners must choose a unique registration name.
– The founder chooses a representative agent that can receive legal documents for the company.
– The owner must fill in the certificate of company formation to identify its name; name and address of the registered agent; par value of the company’s shares allowed to be issued, and mailing address of the company. Fees will increase gradually based on the number of shares issued or raised capital.
Set Tax Code
Your company will need to be identified by the Internal Revenue Service (IRS). This process is usually done through an Employer Identification Number (EIN).
Open a US Bank Account
The requirements for opening a business bank account vary from bank to bank. Nevertheless, you will need proof of starting a company in the US, tax code and a copy of the passport.
If you were present in the US directly at the time of opening your account, it would be easier to open a personal account (provided you have your company documents with you). However, even if you are abroad, you can still find a bank or an online service that offers this service pack.
Follow up the Annual Requirements
Once the company is active, you will need to submit an annual report of the company. This is a basic form that primarily updates the address of the company and the registrar. If you set up a company, you will also need to hold an annual meeting and document the meeting minutes. Do not forget these steps. In case you do not follow the order and paper requirements, your business may fall into a bad status.
In summary, company formation and management in the US will require a considerable investment of time and money. Typically, the more time you are willing to invest, the less money you have to spend and vice versa. However, for many businesses, the benefits of starting a company in the United States often go beyond these costs. You should keep in mind the essentials and choose a trustworthy service when starting a company in the US to get the best results.