The United States has long been an excellent place for starting a new business with the possibility to grow into a multibillion-dollar corporation. The Ease of Doing Business ranking consistently places the USA in the top 10 due to a regulatory climate that is advantageous for launching and running a business. Undoubtedly, there are many advantages to forming a commercial presence in the US. In this article, we’ll look at the main aspects of registering a business in the USA.
Advantages of incorporating a company in the USA
Entering the US market is often the first step to building a global brand. The following are the main advantages of doing business there.
- Legislation and rules. Both domestic and foreign-owned businesses in the USA are treated the same. That’s why you may take advantage of all laws that are pertinent to buying a firm or transferring capital. If there is ever a commercial issue, it places you on an equal footing with your opponent. All firms are subject to the same laws and regulative provisions.
- Low taxation. The United States has more than 60 double taxation avoidance agreements with most of the developed countries of the world, which reduce the tax burden on foreign businesses. There are many financial incentives for overseas investors who will locate their businesses in particular states and locations. The government has lately decreased commercial real estate taxes for foreign investors, and some incentives take the form of tax credits. Corporate tax rates are also substantially lower.
- Access to resources. Natural resources like oil and gas are abundant in the USA, which is also the world’s top producer of electricity. Here, a corporation has access to the best industrial power and raw material facilities.
- Techno-friendly environment. The US’s reputation for having access to cutting-edge technology makes it more desirable as a location for business. Lots of foreign investors establish their ventures in the US just to gain access to the latest-generation technical advancements that will improve their ventures’ output and global communications.
How to incorporate a company in the US
While each American state effects its own laws or standards for the formation of legal entities, there are still certain regulations that are the same across all of them.
- Choosing a legal and organizational form
The LLCs and C Corporations are the most frequently used corporate structures in the US. The decision of a form will shape business activities and tax obligations.
- Deciding on a state
It is advised to open a company in the state where you plan to operate to make the paperwork simpler. You can launch your business in any state if you don’t intend to have a physical presence in the United States. Nevada, Delaware, and Wyoming are the most popular states for business and have the lowest corporate tax rates, thus many foreign entrepreneurs settle their businesses there.
- Applying for business name registration
When deciding on a name for your organization, you must consider aspects relating to intellectual property, such as US trademark infringement provisions and copyright rules.
- Appointing a registered agent
It is required to assign a registered agent to manage legal papers on your behalf in the chosen state. The registered agent is authorized by your firm to receive service of process on your behalf and is recognized as such by the state in which your business is domiciled. For instance, you can get in touch with the lawyers of Eternity Law International firm, which provides clients with company registration services in the USA as well as other legal services.
- Registering your business with the IRS
In the US, the Internal Revenue Service (IRS) tracks businesses through their Employer Identification Numbers (EIN). You require a social security number to receive an EIN. Also, you can use an Individual Taxpayer Identification Number (ITIN) for the same if you are a foreign entrepreneur who does not have a social security number.
- Obtaining authorizations
You may need to get licenses and permits to operate legally in the US. Businesses in the medical domain, for instance, need professional licenses to operate, and businesses in the BFSI or aviation industries need special approval.
- Arranging a bank account
You should establish a corporate bank account for your firm. This requires the submission of the documents proving your entity’s incorporation, your EIN, and your government-issued identification documents.
The bottom line
Starting a new business in the United States can be an exciting but challenging process. Especially in light of the present-day economic and political uncertainties, the challenges of opening a business in a foreign country might seem overwhelming. To succeed in your ventures, it is advised to apply for an expert assessment. The lawyers of Eternity Law International firm, which provides clients with company registration services in the USA as well as other ancillary legal services, can provide detailed data on each of the steps of company formation. With professional help, you will minimize the time needed to gather the necessary paperwork and greatly improve your chances of registering more quickly thanks to accurate filing and documentation.