Are you an entrepreneur starting a new biz or expanding your biz in the U.S.? Consider few tips for your smooth start.
Registering your company
The first step in starting your business in the United States would be to get your company registered. And for that you need to consider the following ideas first.
Choosing a state
Depending on what you are planning to start your business in, you need to see it relevance with the state you are choosing. For example if you are planning to buy real estate property or may be opening some ‘mortar and brick’ store then you must choose the state for your company where this store or property is actually located.
If the business you want to start has no specific relevance or physical connection with any state, then you should choose a state that is incorporation-friendly. These states are Delaware, Wyoming or Nevada. More than Nevada, Delaware and Wyoming are suitable for you as the fees in Nevada are more expensive.
Choosing an entity
Basically there are two types of entities that a foreigner can choose. These are: LLC and C-Corporation. Mostly it is the LLC that is chosen by most foreigners and thats because it is simple and flexible. And more importantly because it has a single taxation. LLC is a pass-through tax entity which means that at the company level the income is not being taxed. It is mostly young entrepreneurs that choose the C-Corporation in order to get Angel or may be VC financing. C-Corporation is a separately taxable entity that means it deduces tax before any distribution of the dividend.
Banking in The U.S.
Banking in the U.S. is a rather complex and complicated subject. There are some companies that claim to open bank accounts remotely but be careful to hire such company.
Few Things to Consider:
- Since you are not a U.S. citizen you will not need any Social Security Number in order to open your company but you need tax ID that is EIN for your company and ITIN for yourself.
- International entrepreneurs would need to file their company taxes in the U.S.
- Also there is always the option of moving to the U.S permanently for your business. In that case you would need E-investor
non-immigrant visa or EB-5 immigrant visa.
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