The USA is a really good jurisdiction as it offers beneficial conditions for foreign entrepreneurs! You can use it as any low-tax offshore jurisdiction (you will not be taxed on your income made outside the US) and enjoy the high reputation and status of your company at the same time, which may be important for international business. Set up your company in the US to take advantage of stable and sufficiently flexible business laws, international and US markets, and excellent infrastructure. US company setup is not as difficult as it is sometimes described!
We would be glad to see you on our portal where you can read the full text of the article on incorporating a company in the USA. If you want to compare it with other jurisdictions, you will find an extensive knowledge base of posts on business incorporation in different offshore and onshore destinations across the globe. You can book a free initial session with our specialist to discuss your circumstances and find the best solution available in the market. Share your doubts with us, and we will share our customers’ feedback with you to help you make a decision! We will help you establish a company and open a bank account in the US without much hassle at an affordable rate. You can contact us right now!
Who Can Take Advantage of US Business
According to statistics, the companies that carry out the business activities below are registered in the USA most often:
- Payment and investment solutions (fintech industry)
- Services rendered to individuals and legal entities across the world
- Different startups
- Investment raising
- IT services and software development
- E-commerce on Amazon in different fields
- Companies that intend to complete an IPO
If you intend to work with American companies, legal entity registration in the USA would be a wise solution as they prefer local companies.
The following goals also make US company incorporation reasonable:
- Tax/estate/inheritance planning
- Making investments in the US and other countries
- Residence by investment using E2 and EB5 visas
Best US State for Your Business
Each of the 50 states is a kind of a separate country that has its peculiar registration and reporting rules and sets its own tax rates.
We can help you choose the best state if we know the kind of your business, the legal form of your company, the target market, and the revenues in the country.
Here are the states that offer zero corporate tax:
- Washington
- South Dakota
- Wyoming
- Nevada
- Texas
- Delaware
However, the US state system includes three tiers (state, federal, and county/city taxes), which means that you should be ready to pay federal taxes in addition to state ones.
The good news is that each state also has its own system of incentives and exemptions, which is appealing to entrepreneurs across the globe.
The cost of company maintenance may vary considerably depending on whether you employ workers, need a license, or have a real physical presence.
How to Establish a US Company?
First of all, anyone who wishes to set up a company in the US (including residents!) will need a registered agent. This is your official representative who will receive legal correspondence.
A US company can be owned by an individual or a legal entity (or by both). They can come from any country, and the only restriction is US sanctions imposed on them.
A US company can be set up online!
Legal Forms
The most popular legal forms registered in the United States are the following:
- Corporation
- Partnership
- Limited Liability Company (LLC)
Most non-residents opt for an LLC or a corporation, so let’s see the differences and similarities between them:
- LLCs are more appropriate for small and medium-sized businesses, while a corporation will be good if you intend to start a large business
- Both will have to submit annual reports
- An LLC is owned by members, while a corporation is owned by shareholders.
- An LLC does not issue shares, while a corporation can issue privileged, common, or registered shares.
- An LLC does not pay company income tax as the owners pay taxes on their income as individuals, while a corporation is liable for corporate tax and dividend tax.
- An LLC cannot be a public company, while a C Corporation may be public.
US Company Taxes
As we have said before, the tax system in the US is three-tiered:
- The federal tax is paid at a rate of 21%
- The state tax ranges between 0% and 12%
- Local taxes are usually low or zero.
The US corporate tax system is not easy to understand, and it gets even more complicated if you run your business in several states. However, hiring a seasoned expert solves the problem, and you always have the possibility to approach the whole thing in a flexible way and save money.
Annual Reporting
The company reporting submission deadline is flexible as it depends on the legal form and the laws of the state of its incorporation.
Sometimes you will need to submit a report even if you don’t pay any taxes.
The cost of professional assistance in report preparation for non-resident companies is usually not very high, so we strongly recommend that you take advantage of it rather than navigating the system yourself.
Bank Account
Opening a bank account in the world’s most prominent financial center is a great opportunity! If you are a non-resident, a personal visit is usually required, but we can help you open a corporate account online.
We work with a number of banks suitable for companies with different needs and business profiles, and we will offer the one that matches your requirements. You will have to complete a short form for us to analyze and come up with the best solution in your case.
Documents
Let’s look at the list of documents you will need to provide to set up a US company:
- Company name
- ID (passport and one more document)
- A short business description
- Information on the founders: full name, residence and domicile addresses, place/date of birth
- Incorporation documents
- Proof of residence (bank statement or utility bill)
In some cases, these documents will need to be certified or notarized. In any case, make sure you are sending us high-quality scans!
Technically, a company can be registered within one business day, but it usually takes a week or so.
Interested? Please click on the above link to explore our portal or get in touch with our expert!
