Inclusion of the USA, as a foreigner, may seem to be quite complicated, but with proper guidance, it would be a very rewarding venture. This is because the USA happens to be an economically friendly country, with much business in store for growth and investments. This therefore gives a general overview of what incorporation entails setting up a company in the USA as a foreigner.
Step 1: Business Structure
Select your Business Structure:
- C-Corporation: It protects your liability and provides tax benefits even if it may be double taxed.
- S-Corporation: It is not double taxed, though it is unable to have over 100 shareholders.
- LLC: Liability protection and tax benefit but has a flexible ownership structure. Partnership: Liability and ownership will be shared.
Step 2: State of Choice
You choose which state you want to be in, depending upon whose laws and regulations will treat your business the friendliest, whose taxes on business are most favorable or whose general climate for business is best.
- How Much It Costs to File with the State: To become incorporated, you would submit your Articles of Incorporation, or Articles of Organization, to the Secretary of State
- Get an EIN: This is a number assigned to businesses and other entities to enable them to easily levy and collect tax.
Step 3: Obtain Licenses and Permits Necessary
- Business License: Obtain licenses and permits in regard to the conduction of business.
- Industry Licenses: Obtain licenses in regard to the industries involved that require special licenses and follow specific regulations pertaining to those industries.
Step 4: Open Business Bank Account
- Separate Personal and Business Capital: If one opens up business accounts then the owner himself can manage well the separation of personal and business capital.
Step 5: File Taxes
- Federal Taxes: Returns are to be filed with the Internal Revenue Service on a yearly basis.
- State Taxes: Compliance is to be made with all relevant provisions relating to state taxes.
Step 6: Foreign Owners and Employees – Visas and Permits
- Business Visa – Apply for and receive the applicable visa that will allow foreign owners and workers to enter and remain in the USA for business. This would include an L-1 visa, E-2 or O-1 visa.
Other Recommendations
- Engage Attorney : Engage in the services of an attorney that would assist them in complying with all laws and regulations in the US
- Join Associations: Avail several business associations and groups where they could call for help.
- Know Your Law: Be updated regarding changes in US law and regulations.
As could well have been concluded from the discussions above, to set up and operating a company within the boundaries of the USA is by no means complicated as long as steps are followed with the help of professional advice.
Moreover, If you want any other guidance relating to opening a in USA Company Registration or filing taxes, please feel free to talk to our business advisors at 8881-069-069.
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