Foreign entrepreneurs are welcome to grow their business in the United States without too many obstacles. The following article will introduce some necessary steps to set up a company in the US.
Please note that if an investor is seeking to establish a business in the US to obtain a VISA or residence card, you should first consult with a lawyer.
Which State and What Type of Company Should be Chosen?
The first thing investors need to consider is that you are preparing to register your business in one of the 50 US states; not simply in America. Therefore, it is important to consider where to establish your company because each state has its own rules/requirements and different incentives. Depending on the business’s purpose, investors need to take much into consideration.
The documents and procedures for setting up a company in the United States are quite simple and compact, whether it is a joint-stock company (Corporation) or a limited liability company (LLC). Therefore, investors can find a lawyer in the US or register online through an online legal filing service. Starting a company through an online service is more affordable while still maintaining the legitimacy; however, you should still have a consulter who will answer the questions related to the investor’s business in a more detailed and clear manner.
When deciding which state to register for a company, you should consider the following factors. If you already have an office or physical presence in the US (housing,…), then the company should be set up in that state. This will support investors very much in opening bank accounts in the US later. On the contrary, if the investor does not have any physical presence in the US, you can set up the company in any suitable state.
What is a Registered Agent?
A registered agent is set up to receive legal papers and documents on behalf of the business. These documents include state renewal notices and papers related to lawsuits.
The agents must be located in the state where the investor’s company is registered. Investors can easily find this service at consulting companies.
Noticeably, investors cannot use the address of a representative agent as the registered address of a company. The agent is like a service to ensure that you do not miss any important documents related to taxes, state business, or lawsuits. The states where you set up the company will always require you to provide the address of a registered agent.
What is a US Company Tax Code?
The investor’s company will need to be identified by the Internal Revenue Service (IRS). This process is usually done through an Employer Identification Number (EIN), such as requesting a social security number.
For foreign businesses, an Individual Taxpayer Identification Number (ITIN) is usually given to individuals who pay US taxes but this is not eligible for a social security number. The investor will use the W-7 form to submit an application for an individual taxpayer identification number (ITIN).
EIN is vital for a company in the US, as this is the minimum requirement for a company to apply for a bank account in the United States. Therefore, when conducting the establishment, investors should carefully check that the services provided by the consulting firm include support for obtaining a tax code.
Furthermore, EIN & ITIN is also an online platform providing such services as EIN, ITIN, Company Formation, US Business Address, US Business Bank Account, and US Sim Card. This makes your paperwork more convenient than ever. Here is all you need to know and do when starting a business in the US.
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