Hey there buddy! Have you ever heard of entrepreneurs? They are the ones who take the initiative to start their businesses!. You know what’s really interesting? Some of these entrepreneurs aspire to establish their businesses in the United States!
So if you have plans to kickstart a business in the USA there are an steps you’ll need to take. First and foremost it’s essential to determine the type of business you wish to venture into—whether it be a store or a restaurant. After that comes the task of choosing a name for your business and finalizing where exactly you’d like to operate it from.
But here’s the thing: you can’t just start a business in the USA without doing a few things first. You need to find a special person called a registered agent who will help you with things like opening a bank account and getting a special number called an Employer Identification Number (EIN).
The EIN is like a special ID card for your business. It helps the government know who you are and what you’re doing. And you need to have one before you can open a bank account!
So, once you have your registered agent and your EIN, you can open a bank account and start using money to buy things for your business. It’s like having your very own piggy bank, but for your business!
And that’s not all! You also need to get some special permits and licenses to make sure you’re doing everything legally. It’s like getting permission to have a party in your business.
But don’t worry, it’s not too hard to do all of these things. You just need to be brave and ask for help when you need it. And who knows, maybe one day you’ll be a famous entrepreneur with your own business in the USA!
Before Establishing a Company in the USA
Before establishing a company, in the United States it is necessary to have a registered agent in the state where you plan to operate. This registered agent is responsible for tasks such as opening bank accounts preparing reports and obtaining tax identification numbers.
Once you’ve decided on the type and name of your company it’s helpful to determine where your office will be located. If you’re running a business a physical office space may not be required. You’ll also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for your company. After that you can proceed with registering your company with the state by completing the formation documents based on your chosen business structure.
Once you’ve acquired all the required licenses and permits for establishing a company in the United States you can proceed with opening a bank account. To do so make sure to have identification documents like a drivers license or passport along with either the certificate of incorporation or company agreement and the tax identification number provided by either IRS or EIN.
In addition to these steps it’s crucial to maintain accounting records to keep track of your company’s activities. Keeping receipts and invoices as supporting documents is essential, for record keeping purposes. Document retention holds importance for companies.
There are two options, for managing these records; either using a system or employing accounting software. If individuals lack the expertise and experience to handle these records they can consider seeking help. Maintaining records is crucial, for safeguarding the company against any problems.
Obtaining a Tax Identification Number for Companies in the United States
If you want to establish a business in the United States, you need to obtain a tax identification number for your company. You can apply for an Employer Identification Number (EIN), which serves this purpose, online or by mail through the IRS. An Employer Identification Number is a nine-digit number. Similar to a Social Security Number, the Employer Identification Number is used in tax forms and other legal documents.
You are required to obtain a tax identification number for the purposes of registering the company with the state, opening a bank account, and employing workers. Those who prefer to apply by mail can fill out the application form for the Employer Identification Number and send it to the IRS.
During the process of obtaining an EIN, you will be asked to provide the company’s name, structure, and address information. It is important to use the correct tax identification number on the documents you fill out. Having a tax identification number for the company prevents potential confusion and delays.
Licenses and Permits Required for Establishing a Company in the United States
Depending on the nature of your business you’ll need to acquire license documents and permits when setting up a company, in the United States. These include business licenses, professional licenses, zoning permits and health and safety permits if applicable.
Business licenses are necessary for establishments like stores, restaurants and places that offer services. They ensure that your business operates in compliance with the law. Professional licenses are specific to professions like lawyers, doctors and electricians. Zoning permits are required for businesses operating from locations, such as kiosks or outdoor structures.
If your company engages in activities that may impact health and safety it’s important to obtain all the health and safety permits. You can apply for these licenses and permits by submitting an application along, with the required fees. The specific licenses and permits needed may vary depending on the state where you plan to establish your company and its type.
Failure to obtain the licenses and permits could result in penalties. Operating without a license might lead to fines or potential closure of your company.
Considerations When Establishing a Company in the United States
When starting a business the first thing you need to do is choose the right company structure. In the United States there are options for you to consider. It’s crucial to assess which structure suits your company best before making a decision.
For freelancers they can establish what is known as a ” proprietorship,” which’s similar, to sole proprietorships in Turkey. These types of companies are taxed based on income. This structure offers some flexibility in terms of regulations. Tends to meet the expectations of individuals quite well.
There is also a company type called a “corporation,” which can be compared to joint stock companies in Turkey. Corporations are further divided into C corporations and S corporations. In C corporations shareholders face taxation from the company’s assets. Both corporate and individual taxes apply to the company’s profits resulting in taxation. On the hand S corporations directly transfer assets like income, losses and credits to shareholders. S corporations are often considered suitable for businesses with 100 or fewer shareholders.
LLC companies share similarities with liability companies, in Turkey. Offer members limited liability protection. They provide flexibility when it comes to partnership arrangements and taxation methods making them particularly appealing among business owners.
The personal possessions of LLC members are not, in danger if the company incurs debts or faces actions. Additionally this type of company offers tax benefits, for its members.
What is LLC in USA
LLC stands for Limited Liability Company. It is a type of business structure that combines the features of a corporation and a partnership. LLCs provide the liability protection of a corporation, where the owners (called members) are not personally liable for the company’s debts and obligations.
LLCs also have the flexibility of a partnership, where the members have the ability to manage the company and share in its profits.
What is EIN in USA
EIN stands for Employer Identification Number. It is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business for tax purposes. EINs are similar to Social Security numbers for individuals and are used to identify businesses when they file tax returns, hire employees, or open bank account.
Obtaining an EIN is a simple process that can be done online or by mail.
Benefits of opening LLC in USA for non-US residents
Liability protection
Opening LLC can provide non-US residents with liability protection for their business. This means that if the business incurs debts or faces legal action, the members’ personal assets will not be at risk.
Separation of personal and business finances
An LLC allows non-US residents to separate their personal finances from their business finances, which can make it easier to manage their financial affairs and protect their personal assets.
Flexibility in management
LLCs offer flexibility in management, as the members have the ability to manage the company themselves or hire a manager to handle the day-to-day operations.
Potential tax benefits
LLCs may offer tax benefits to non-US residents, such as the ability to pass through income and losses to the individual members, potentially reducing the overall tax burden for the business.
Ease of doing business in the US
Obtaining an EIN can make it easier for non-US residents to do business in the US. It helps to open the business as a legitimate entity for tax and legal purposes.
Compliance with US laws and Stronger business credit
opening LLC and obtaining an EIN can help non-US residents to comply with US laws and regulations, which is important for the success and longevity of their business and having a stronger business credit.
Additional advantages of opening LLC in USA?
- The possibility of adding several activities and projects to the same company
- The possibility of securing crowdfunding from financing platforms to your bank account
- The possibility of achieving rapid growth in a flexible environment at low costs
- Add your company name to the USA companies in BBB
- Communicate with confidence with any business partner and all your business is legal
- All mail that reaches your US address will be sent to your e-mail
- Income tax exemption company in Wyoming and Delaware
- Make trademark protection by DBA application to USPTO.
What are the requirements to form a new LLC in USA?
- Anyone can open a company in USA and does not have to be a resident or citizen of USA.
- The company must be in one of the tax-exempt states such as Wyoming and Delaware.
- The owner of the company or one of the partners must not be residing in a country subject to US sanctions.
- Hire a registered agent to represent you in front of the US government institutions.
Continue reading for more information about how to find and registered agent in USA.
What are the documents list required for new LLC formation in USA?
- A copy of your passport, the first two pages to be valid
- National ID or residence card if you live outside your country
- The current address is documented with (electricity, water, telephone, or bank statement)
- Repeat the above for each partner, if there are partners
How much does it cost to set up new LLC in USA?
- The state fee is $60 in Wyoming.
- The cost of hiring a registered agent is $339 for the first year, including incorporation fees.
- Annual renewal cost only $259 including state and registered agent fees in Wyoming.
- After the first year, you will have to pay a chartered accountant’s fee to file an annual financial return with the IRS of $350 to $1,000 depending on sales and activity in your bank account.
- If you choose Delaware, the state fee will increase to $300, and the renewal will be increased by the same amount.
Best Registered Agents in USA
You need a registered agent for your LLC or corporation in all states where you conduct business. The role of a registered agent is to start LLC formation and to handle legal documents for your business. It is important to choose a registered agent you trust to promptly inform you about any legal documents. Try to find a registered agent with high credit for smoother process.
What matters in the address of the registered agent or the registered office is that it is available to receive any documents from any party on behalf of the LLC.
Watch out! A PO Box or Shipping Company address is not an acceptable registered agent address.
Steps to opening LLC in the US for non-US residents
1- Choose a business name and confirm its availability
To start the process of forming an LLC in the United States the first step is to choose a business name that stands out and is not already taken. If you are not a U.S. Resident it’s important to verify with the state where you plan to incorporate that your chosen name is both available and meets all the requirements.
2- Choose a state in which to incorporate the LLC
Non U.S. Residents have the flexibility to select any state in the U.S. For incorporating their LLC. However it’s worth researching states regulations and tax policies as some may be more favorable for businesses than others. Take time to weigh the pros and cons before finalizing your decision.
3- File articles of organization with the appropriate state agency (By Registered Agent)
Once you have settled on a business name and chosen the state of incorporation non U.S. Residents will need to file articles of organization with the state agency typically known as the Secretary of State office. This process involves completing a form and paying a filing fee.
4- Obtain an EIN from the IRS (By Registered Agent)
After establishing your LLC, non U.S. Residents will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This can be done online or, through mail correspondence.
Non U.S. Individuals who are not citizens of the United States will be required to provide information, about their business and the members of their Limited Liability Company (LLC) in order to obtain an Employer Identification Number (EIN).
5- Create an operating agreement (By Registered Agent)
As a step it is advisable for U.S. Residents to consider crafting an operating agreement for their LLC. This agreement will outline the rights and responsibilities of the LLC members, as the management of the business. Although an operating agreement is not legally mandated, having one can help prevent conflicts and ensure operation of the business.
That’s it! Now you have successfully established a recognized LLC in the United States with an EIN.
What Projects can run through LLC in USA for non-US residents?
- Online education platforms and training courses
- Consulting, programming and e-marketing companies
- E-Commerce and get an e-payment gateway easily
- Amazon FBA sellers are tax free on their withdrawals
- Earning sites Google AdSense or AdMob and others
- Affiliate marketing sites and blogs
- Drop-shipping Websites
- Import and Export companies inside and outside USA
What Registered Agent do for you to open LLC in USA?
You can start the process of opening your company online through our platform without the need for paperwork. The required documents and information will be requested in a series of steps in a single session.
You can start now, and don’t worry, payment will not be the first step. Instead, it will be the last step after ensuring that the entered data is correct and meets the requirements of the United States to open the company.
How much time is required to complete the procedures for opening a company in USA?
- Company registration is completed within one working day
- Then submit an SS4 Form to the IRS for an EIN
- We are waiting for it to be issued by the tax department within 20 days
- After receiving the EIN, we submit an application to open a bank account and wait for approval within 10 days
The total period is about 30 working days to finish all the procedures and receive your company with the tax number, address and bank account in succession
All papers and documents that you will get are digital documents that can be matched electronically through the state’s website
Of course, you can obtain the official (commercial registry) contract/incorporation certificate from the US State Department for a fee of $100 for the original paper and $50 for each true copy. This applies to any company document such as: Company Operating Agreement, Company Articles of Association, Share Statement Certificate, and SS4 Tax Certificate.
Many of our clients choose the limited liability company for e-commerce, service, advisory, and educational businesses due to its ease of management and modification, as well as its simple annual tax filing procedures. This is why it is preferred by entrepreneurs for their emerging and medium-sized projects, as well as import and export companies in the USA.
If your project grows and you need to include shareholders or you want to secure individual or group funding, you can easily open a joint stock company and transfer your projects and brands to it.
Annual Legal and Financial Obligations for LLCs in USA
Your company’s annual legal and financial obligations are:
- Registered agent fees
- State fees
- Accountant service fees
You can submit your company’s papers to the Income Department on your own and dispense with the services of a chartered accountant. However, it is not recommended for beginners, especially.
In order to avoid any fine or rejection, And of course the services of a chartered accountant are very convenient, as he only asks you to state the bank account for the past fiscal year, and he does all the necessary preparations himself, including books, documents, and forms.
FAQs
Is it necessary for me to travel to the United States in order to establish an LLC?
No there is no requirement for you to physically visit the United States in order to form an LLC. The entire process can be completed online or, through the assistance of a third party service provider.
Do I need a visa if I want to operate an LLC in the US?
Whether. Not you need a visa depends on the nature of your business and how time you plan on spending in the US. If your intention is to work within the US and stay for a period obtaining a work visa may be necessary. However if your business activities will only be term you might be able to enter the country using a business visitor visa.
Can I be sued in the US as the owner of an LLC?
Yes, as the owner of an LLC, you can be sued in the US. It is important to protect your personal assets by forming an LLC and to carry liability insurance to cover any potential legal claims
When you click on the “open your company” button, you will be transferred to the registered agent’s website directly to submit the application electronically, and through the communication window on the site, you will be able to inquire about any point you need to answer
