In the global market, the US market is known to have one of the highest purchasing power. The nation boasts a rank among the top 25 nations in terms of the quality of life of its residents. Hence, this gives an idea that the step of incorporating your company in the US is bound to open doors to success.
Major global brands such as Apple, Twitter, Uber, Google, etc are known to have begun their journey from the US. The procedure to incorporate your company is quite simple. However, first of all, it becomes important to understand what benefits you will get by registering in the US.
What is Incorporation?
Incorporation is the process through which a business entity is formed. It is done usually to scale down the paperwork that is required for a simple business. Many types of incorporations are available for a business from which you can find the one that would suit you the best. It is a legal business type with a recognized name. It is not a sole proprietorship or an organization. Rather, it is a separate legal entity with its own board of directors, with an ability to create profit or loss for its owners through their business services.
Registration of a company in the US: Choose the type of Registration form
In whatever city you wish to register your company in the US, the registration of the company is possible with one of the three forms listed below:
- Partnership
- Limited Liability Company (LLC)
- Corporations (S and C classifications)
The corporations in the US are divided into two categories:
- C-Corp
- S-Corp
The difference between the two corporation types i.e. C-Corp and S-Corp is evident in their tax rates. For Non-residents, the C-Corp type is the only option.
General Costs Involved in the Incorporation of a company in the US
The process of incorporation is complex process. It is important for the business owner to know about the various costs that are involved and the expected amount. At EZ Corporates, our professionals will help to make the process of registering your company in the US easier and smoother. Listed below are some of them.
1. Filing articles of incorporation
The Articles of Incorporation has to be filed with the Secretary of the state to start a corporation officially for which a certain amount has to be paid in form of a fee for filing. It may be a fixed amount or may vary depending on the number of shares approved.
- Franchise Tax payment – First year
- Governmental Filings
- Attorney’s Fees
What are the documents required to register for a company in the US?
Registering for a company in the US? At EZ Corporates, our experts will help you find the right set of documents and ensure that the paperwork process is completed in the easiest and simplest of ways. Listed below are the documents you would require to register a company in the US.
Individual Identification documents
The first set of documents that you need to collect is personal documents. It includes all the documents of one or more founder individuals. Also, you would require the same for all the appointed directors of the company.
In case the founders of your company are legal entities, you will have to gather some additional documents. It includes the statutory documents of the enterprise such as the minutes of meetings, articles related to the association, and the certificate of incorporation among many more.
Also, you need to attach information about the type of activities that your company performs which is called the object clause, and detailed information about the name of the company. It is important to note that all the documents that are to be submitted are translated into English language, and thereafter these documents must be signed
Why Should you Incorporate in the US?
The benefits of incorporating your business in the US are several and spread both locally and internationally. The US is the second most competitive economy currently worldwide. Here are some of the reasons to incorporate your business in the US.
At EZ Corporates you can easily incorporate your business in the US. We ensure that all the activities in the process of incorporation are completed smoothly without any hassles.
1. Gain Access to New Markets
Entry into the US market will give you a pass into some new markets, with a population who are ready to shell out money for worthy products and services. The US is home to the world’s most renowned investors and has stayed up with its reputation of arguably having the biggest market base.
The US has many cities looking to create a business hub and so is in keen need of more businesses to enter the market. This gives you access to various locations from which you can choose all over the US, also allowing you better opportunities to expand your business once it starts running smoothly. Further, the growth scope for the American business market is vast given the trade agreements of the US with 20 nations globally.
2. Economic advantages and incentives
Further, the customer base of the US presents a great variety of markets for almost every business.
The nation also offers numerous federal, local and state government incentives for foreign business owners and investors such as tax credits, and discounted taxes for real estate among many others.
3. Reduce risk on your personal assets
By incorporating your business in the US, your firm becomes an independent legal entity. In other words, you can safeguard your personal assets such as property and funds. In case your firm encounters any debts, it is your company that might suffer the consequences and risks related to the same.
The investors can only claim their share in the business assets if your company has been incorporated in the US. it helps avoid any unnecessary risk to personal assets, savings, etc.
4. Better and Wider Access to Capital
When you register your business in the US, you become legible to issue shares of your company and also raise equity price. It can help attract more capital and give easier access to it. In order to run a business and expand it, investors play a crucial role in its development. In fact, most investors usually prefer putting their money into businesses that are registered, since they have a formal structure. It allows a more profitable use of their funds.
Also, a registered company would find it easier to borrow money from credible sources in form of loans. Also, lenders usually have information about the various monetary sources of the registered firm, giving them the assurance that their funds shall be repaid within the decided time.
5. Improved Brand Image and Reputation
It is a basic perception that registered businesses are seen as more credible, unlike unregistered ones. By registering your business in a market like the US, you set up a base for your business to have an improved brand image. This will also benefit you with deals from credible sources.
In the US, many foreign investors establish ties with only those companies who are registered as per US laws and regulations. Also, this gives them a chance for long-term trade relations. Not only private but also many government contract work goes to companies that are registered in the US.
6. Gain Access to Cutting Edge Technology
The US is known to have one of the most advanced technologies, which makes work quite easy to complete. This characteristic makes business more desirable in the US. In fact, many investors register their businesses in the US for gaining access to high-grade technology.
The reason for this is that the technology allows better efficiency and higher productivity for the business to grow well. A high-grade technology also gives higher chances of entrepreneurship business and presents a scope of innovation.
7. Easy Access to Skilled Labour
When you register in the US, you can avail of various health and related statutory benefits. The State Identification Number allows you to direct the state taxes for your employees. All these benefits given by your company would attract more skilled employees to join your firm.
As a registered firm, you will be able to hire full-time employees as per the legal laws for a number of working hours. By registering your firm in the US, you can find quite a lot of manpower which would help increase the productivity of your business.
How Long Can It Take to Incorporate in the US?
The duration for incorporating a company in the US depends on a number of factors such as the complexity involved in the process,& the state you choose.
FAQs
Q1. How long does the Incorporation process last?
A1. Usually, it takes anywhere between 2 days to 2 weeks for completion of the incorporation process & the state we chose. It depends on the state and the backup of the Secretary of State office.
Q2. Can I use my registered agent’s address as my company’s address?
A2. No, you cannot use the agent address as the legal mailing address of your company as it is strictly for the receipt of official documents. The company’s address has to be a separate mailing address service that authorizes them to use their address as yours.
Q3. Do I need an EIN for my business?
A3. Yes, the EIN i.e. the Federal Tax Identification number consists of nine digits. It is issued by the IRS & is used for all kinds of tax compliance.
Q4. Do I need to be a US citizen or green card holder in order to own a corporation in the US?
A4. No there is no requirement for a green card or US citizenship in order to own a corporation in the US.
Q5. Can I work in the US if I own a Corporation or LLC?
A5. If you have proper documentation. You may hold the position of shareholder or director without Visa. However, working as an officer or performing duties for your business is not allowed without a Visa.
Summary
Incorporating your business in the US is a wise decision as it can benefit the business in many ways. Although we made the process quite smooth, incorporation could seem a tedious task, especially when a lot of other activities are occurring in parallel.
To ensure the process of incorporation is completed smoothly, we at EZ Corporates ensure you get a step-by-step guide and suggestions in any complex situations that might arise. Our experts have a sufficient amount of experience dealing with the various operations involved in the process of incorporation. It is important to choose the right type of incorporation for your business. For any further queries, reach out to our experts.
