Company Incorporation in USA- Key Factors to Consider
If you are a non-US resident and wish to start a business there, you will have to incorporate the company in the USA. Fortunately, company incorporation in USA is not a complicated process, especially if you have experienced experts by your side. You need to register the company, get it incorporated, and then obtain an EIN to seamlessly operate your business entity in the USA.
In this article, we will talk about some essential aspects that you must consider while incorporating a business in USA.
Identifying the Right Business Structure
The first thing that comes to mind when talking about the company incorporation in USA is setting up a corporation. However, a corporate structure may not always be a feasible choice. This form of the business structure must only be opted if you are interested in issuing shares in your business. The most noteworthy benefits of opting for this are that it is more scalable, gives you the option to go public, and makes it easier to raise capital.
The other available options include sole proprietorship and partnership. While the two offer adequate flexibility in managerial structure, they are taxed on the personal returns of their owners.
Lastly, you can choose to structure your business as a limited liability company (LLC) that will allow you to benefit from a personal liability shield. It is a much safer option as LLCs are not subject to as much reporting as corporations. So, before proceeding with company registration in USA, you need to finalize the best business structure for your needs.
Determining the Area Of Company Incorporation In USA
The next factor that plays a crucial role in incorporating a business in USA is deciding the area of company incorporation. Companies in the US are registered at the state level instead of the federal level. There is a straightforward foreign qualification process that enables you to conduct business in any of your chosen states.
It is best to seek the guidance of an experienced attorney who can help you carefully select the state of incorporation. The state you choose for incorporating your business is a critical decision because the state’s laws significantly impact everything, from reporting and compliances guidelines to corporate tax.
A lot of business owners choose Nevada or Delaware for brand registration. The two are known for their low taxation policies and lucrative employment regulations.
Stating the Name of the Business Owners
Company incorporation in USA also requires you to list the names of all incorporators and directors in the articles of incorporation. Primarily, the incorporators prepare and authenticate the articles of incorporation and the company’s listed board of directors manage operations for the business on a daily basis.
Based on the state you choose for incorporating a business in USA, you may be required to list a minimum number of directors. Apart from this, you will also have to state the number of shares of stock your corporation is permitted to issue overall.
Obtaining a Work Permit
It is important to note that an overseas citizen is only allowed to work as a director in the US and that he/she cannot receive a salary. If they wish to receive a salary, they need to secure a work permit. Depending on your chosen state for company incorporation in USA, you will need a license from the state, city, or county.
Although you can own a business entity in the US without a permit, you will not be allowed to work for that company sans a license.
Selecting Your Business Name
You need to come up with a business name before proceeding with company incorporation in USA. Once you submit your articles of incorporation, your chosen business name will be officially listed with the government. So, before that, check the availability of the name to make sure it is not taken by any competitor already.
This is an important step in the process of company registration in USA that spares you a lot of stress. Furthermore, you will have to select a physical address for your business. For this, get in touch with a registered agent in the state where you are incorporating your business.
Often, the complexities of company incorporation in USA can be overwhelming. It is best to seek the guidance of a skilled business attorney to straighten out the process and expedite legal matters.