Wondering how to incorporate a company in U.S.A.? Every day, people are setting up U.S. businesses, from small shops to major enterprises. Gaining access to the U.S. marketplace is a big key to success for many companies around the world. Usually, the easiest way to reach this market is by forming a U.S. company. Many businesses decide to incorporate in order to take advantage of the world's largest, best integrated national market at the lowest tax rate.

Benefits of Forming a Company in the U.S.

Did you know that it is not a requirement to be an American citizen to own and operate a business in the United States? Anyone can form a company with the same ease as an U.S. citizen.

There are many ways why a foreign entrepreneur would choose to form or grow their business within the United States Limited Liability Corporations (LLC) are one of the most popular business types. It isn't necessary to have American citizenship to start this type of business. The process for starting an LLC as a foreign business owner is the same as for an American citizen, and is actually quite easy.

  • Pass-Through Taxation: There are no corporate income taxes with an LLC. This allows business owners to avoid paying taxes as both an individual and an entity. This is commonly referred to as double taxation.
  • Employer Identification Number (EIN): An EIN allows you to hire employees and file taxes for your business. Unlike a Social Security Number, an EIN can be granted to you even if you don't reside in the United States.
  • Legal and Compliant Revenue Streams: To legally work within the U.S., foreign citizens need to hold a green card. However, non-citizens can be a director or corporate officer.
  • Small Business Administration Loans: These types of small business loans are federally guaranteed, offering low interest rates and flexible terms to both U.S. and non-U.S. citizens.

How to Set Up a U.S. Company as a Foreign National

  1. Incorporate your business by choosing a business type and state: As you begin, remember that you aren't registering your company in the U.S., but rather in one of the 50 states. The paperwork needed to set up your LLC or corporation is pretty straightforward. However, consulting with a lawyer may be beneficial. They can help answer any questions that specifically pertain to your business and each state's laws. You can contact an attorney to work with you or use an online legal filing service. Remember that a company formed through an online legal service is just as legitimate as one set up through a personal attorney.
  2. Select a Registered Agent: A Registered Agent is an individual or business that is registered in the same state in which a business entity was established. They are designated to receive correspondence from the Secretary of State, process notices, and other official government notifications.
  3. Submit the Articles of Organization: The Articles of Organization may also be referred to as a corporate charter or the articles of incorporation. Typically, a corporation is required to provide its name, the name and address of the registered agent, number of authorized shares, and the name and address of the people incorporating.
  4. Request a tax ID number: An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity.
  5. Open a U.S. business bank account: This is required to verify your identity, and to allow the bank to validate the documents and information needed to open your account. You will need an official photo ID, proof of home address, bank statements from your home country bank, and perhaps other verification.
  6. Register a U.S. mailing address
  7. Obtain a U.S. phone number
  8. Analyze and determine your current tax situation: It's recommended to work with an accountant that is located in both the U.S. and in your home country. This will help you conform with the tax implications in both countries.
  9. Fulfill all of the annual compliance requirements: An annual report will need to be filed. It will include the name of the registered agent and address of the business. The annual meeting minutes will also need to be filed. Failing to file these annual requirements may leave you in bad standing within your home state.

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