To register a company in the US online may sound complicated but not impossible. You can actually have a company in USA even if you are not a citizen or resident in the country. All you need is to set up your business online and manage an LLC from any country, but you may require a valid work visa. This article will explain all you need to know about how to register a company in USA online
Regardless of the state, you can register a company online in the USA is either as a Partnership, Limited Liability Company (LLC), or Corporation (S and C classifications). Although LLC is the most cost-efficient of the three, you can decide on the other forms too as desired.
For a Limited Liability Company (LLC), you will be required to file a tax return subject to the 1120-F form. If you are a resident of the country, only the company’s income is taxable, however, for non-resident owners 30% tax rate is provided on the basis of predetermined dividends. Also, it is necessary to mention the paying of federal fixed corporate income tax at a rate of 21% for corporations.
Corporations in the USA are divided into C-Corp and S-Corp. The difference involves the level of tax rates. Non-residents can register a company in the USA with the status of C-Corp since it is most beneficial. Income tax is provided for this form of business, and additional allocations are possible, but their availability depends on the specific state of registration and other factors.
To register a company in the USA online, below is a checklist of the requirements needed and things to do:
- A United States bank account for your company that will enable you to sell to domestic clients.
- Decide on the type of business that is right for you according to the needs of the consumers.
- Decide where you should form your LLC, S-corporation, or Partnership.
- Find a local registered agent.
- Register your LLC or S-corporation.
- EIN (Employer Identification Number).
- Company location
- US mailing address.
- Purchase business insurance.
- Get a local US phone number for your new business.
- Tax liability research.
- Open online accounts with businesses like Amazon.
Having a separate cooperate account for your business helps you to track financial transactions and it is one of the most essential parts of building a sustainable business. A business account can sometimes be required by the state in which the company is resident. In the USA, a business bank account is needed for the company formation most of the time, depending on what type of company you are running.
Type of Business
The type of business chosen should be dependent on the needs of the people in the USA. Do thorough market research to find out how the products of your business will be beneficial to your customers, other competitive markets, and the rate of demand.
Local Registered Agent
To open your business, you may/may not require a local registered agent. The need for a registered agent is dependent on the business (LLC, S-corp, or C-corp).
LLC vs. S-Corp
A limited liability company often referred to as LLC, is a business entity ideal for business owners who are looking for more protection from personal liability. LLC is the least complicated and restrictive type of business structure to establish and operate as you can act as your own registered agent to complete the operating agreement. This particular business structure also guarantees no double taxation.
An S Corporation is a tax classification, which lets the International Revenue Service know that your business will use partnership taxation. It is important to note that launching a corporation is more complicated than LLC as you will need to register as a C-corp first before adhering to more specific guidelines in order to be eligible to change to an S-corporation. This particular business structure provides limited liability protection but allows any corporation with 100 shareholders or less to be taxed as a partnership.
Employer Identification Number (EIN)
This is a 9-digit sequence that helps identify your business for tax purposes. An EIN is required before starting the company registration process as an LLC or corporation. The IRS provides a free registration service for all applicants and can be completed online.
Choosing your company’s location is one of the most important decisions you will make. Here are things to consider before deciding on your company location:
- Local competition
- Supply chain
- Compare State laws and tax regulations
The decision you make should be one that will meet all the business objectives for your company in the most cost-effective manner without sacrificing quality. Big cities in the USA can bring more business to your company but there is more competition.
How to register a company in USA online
After you have gotten your documents and considered all the necessities needed to get your company started. visit USA Corporate Services Inc and follow the steps there to begin registering your company.