Our guide to opening a company in the USA covers the advantages of being an American business owner, as well as the simple list of steps you need to take to get started. We also discuss solutions to the most common challenges that can arise, in order to help make your experience starting a business as easy as possible.
BENEFITS OF OPENING A COMPANY IN THE USA
Did you know that you don’t need to be an American citizen to register a business in the United States? Anyone can do this and is not more difficult than being a US citizen. With this in mind, let’s consider some of the most common reasons why entrepreneurs prefer to build or expand their business in the United States.
- Limited Liability Companies (LLC): LLCs are one of the most popular business types in America today, and citizenship is not a requirement to start one. The setup process for an LLC is the same for a foreign national as it is for a US citizen, and is quite simple.
- Pass-Through Taxation: There is no corporate tax for a LLC. This allows business owners to avoid the double taxation effects arising from the payment of taxes, both as an asset and as an individual.
- Employer Identification Number (EIN): No Social Security Number? no problem! In the case of EINs that allow you to file taxes and hire employees, it does not matter if you live in the U.S. or not.
- Legal and Compliant Revenue Streams: Foreign citizens cannot work in the United States unless there is a green card, but they may be company officials or managers.
- Small Business Loans: These federally guaranteed loans, with flexible terms and low interest rates, are available to U.S. and non-U.S. citizens alike.
FIRST STEPS TO ESTABLISH COMPANY IN THE USA
Depending on what type of business you open, and in which state, the process could vary a bit. In general, there is a fairly typical process for starting an LLC in the US and you may be surprised how simple it is.
- Select a State: If you are selling physical products to a specific location, you may want to start your business in this situation. If you are often doing business in your own country, you may wish to open your LLC in a state with favorable conditions for foreign property owners, such as Delaware, Wyoming or Nevada.
- Name Your LLC: Choose an ideal name for your company.
- Choose a Registered Agent: If you are not physically present in the United States to obtain important legal documents, you will need a registered agent. A registered representative in the form of a post receives these documents by post and communicates them to you in your own country (or elsewhere in the United States).
- File Your Articles of Organization: Company registration documents. After you prepare and file these documents, LLC is ready to start your business!
- Obtaining an EIN: Whether you’re in the US or not, you probably need an EIN to run your business, because it allows you to open bank accounts, pay taxes, and hire employees. There is a simple application process that is the same wherever you are.
Have a professional service form an LLC for you:
Recommended: Delaware Registered Agent
It is important to note that every step of the LLC formation process is not a breeze for foreign nationals. Let’s take a look at a few barricades along the way.
Opening a Bank Account in the US: This is one of the toughest obstacles, because you need to be physically present at a bank branch in America to open a bank account. And if you’re not in the US, you usually need to travel. If you choose this route, you need to call the bank in advance to make sure that you have received all the necessary documents. Different banks may have different requirements, so contacting them first is a must.
Still, there are other options. If you have opened a personal bank account in the US, you can open a business account remotely. You can also obtain a service, such as PayPal, depending on the nature of your business.
Obtaining a Virtual US Address: Although you probably don’t need to open a physical office in the US, you’ll probably need a valid postal address if you prefer. To achieve this, many international entrepreneurs like to use mail or virtual office services.
For this, we will provide you with websites where you can obtain a virtual address (VBadress, Viabox)
If you want to open a company in the US, we recommend the USFormation Delaware Agent, which provides you with fast support and help in every aspect. They provide quick support and help you through the whole process. Email any questions in your mind to them and replying back very quickly and they can solve your problem.