Do you live in the US and you want to form a company or incorporate your business? As expected, there are a lot of important steps connected to such a plan, and this post will tell you all you need to know.
1. Set Up a Business structure
US company formation has its unique nature, such that a corporation or an LLC can have an unrestricted amount of owners, and they can be individuals or companies.
However, in a situation where a company owner or shareholder is not a citizen of the US, the business can either be made into a C-Corporation or a limited liability company (LLC). But if all owners or shareholders are US citizens, then they can set up an S-Corporation.
You’ll need to find out if your country of residence has any restrictions about whatever kind of US company is or isn’t allowed to operate there and pay attention to your local country laws alongside US laws.
2. Consider the best State to Form Your LLC or Corporation
Within the US, some states have better conditions for businesses and companies, and it is in your best interest to set up your company in such states.
The state you choose should depend on the nature of your company and your reason for forming that company.
If you are setting up an online company or your business won’t have a branch in the US, then Wyoming will be a better option because it has lower annual state fees. Nevada and Delaware would be better for physical businesses.
3. Meet all the requirements for US company formation
Depending on your decision to set up an LLC or a Corporation in the US, you’ll need to meet several basic requirements.
- First, you need to choose a company name, and searches will be run to ensure that the name is available within your state. Otherwise, you will have to try several name options until you get an available one.
- Then, you need to hire a registered agent who should have a physical address in the state where you’re forming the business and will sign official and legal documents for your company.
- Make the names and addresses of all the individuals and companies involved in your new company available.
- You might need a Federal Employer Identification Number(EIN) or a Tax ID number from the United States Internal Revenue Service. The Federal Employer Identification Number is necessary to set up a bank account in the US as well as in some other countries.
When setting up your company bank accounts, ensure that the account meets all your business needs, including online and face-to-face service, ease of deposits and withdrawals, as well as competitive interest rates on company savings.
If you are a foreigner owning businesses in the US, you might want to set up a domestic corporation. If this is the case, talk to tax specialists both in the US and in your home country to help you through all the regulations because they are often difficult to navigate without professional guidance.